FMY vs VXUS
FMY vs VXUS
First Trust Mortgage Income Fund vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.
Side-by-Side Comparison
| Metric | FMY | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 1.35% | 0.05% | |
| AUM | $52M | $156.5B | |
| Dividend Yield | 6.29% | 2.60% | |
| Holdings | 166 | 8,747 | |
| YTD Return | -0.36% | +13.57% | |
| 1Y Return | +0.46% | +28.78% | |
| 3Y Return (annualized) | +8.52% | +18.63% | |
| 5Y Return (annualized) | +2.98% | +9.05% | |
| Volatility (annualized) | 8.8% | 15.1% | |
| Max Drawdown | -47.3% | -39.9% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 25, 2005 | Jan 26, 2011 |
FMY vs VXUS Performance
First Trust Mortgage Income Fund (FMY) is a ETF from First Trust Portfolios (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year FMY returned +0.46% while VXUS returned +28.78%. Year to date, FMY is down 0.36% versus a gain of 13.57% for VXUS.
Over three years, FMY compounded at +8.52% per year against +18.63% for VXUS; over five years the annualized figures are +2.98% and +9.05% respectively. Across the full 16-year window we track, VXUS has the edge at +4.80% annualized vs -0.91%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 8.8% for FMY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -47.3% for FMY and -39.9% for VXUS. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMY charges 1.35% per year while VXUS charges 0.05%. On a $10,000 position that is $135 vs $5 annually, a gap of $130 per year that compounds over a long holding period. On income, FMY currently yields 6.29% against 2.60% for VXUS.
Holdings Overlap
FMY and VXUS share 0 holdings out of 7889 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FMY or VXUS?
FMY has an expense ratio of 1.35% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $130 per year of difference.
Which performed better, FMY or VXUS?
Over the past year FMY returned +0.46% vs +28.78% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), FMY annualized -0.91% vs +4.80% for VXUS. Past performance does not guarantee future results.
Which is riskier, FMY or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 8.8% for FMY. Worst drawdown: FMY -47.3% vs VXUS -39.9%.
Should I hold both FMY and VXUS?
FMY and VXUS have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMY and VXUS?
FMY and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7889 unique securities.
Which pays a higher dividend, FMY or VXUS?
FMY yields 6.29% while VXUS yields 2.60%, so FMY currently pays the higher dividend yield.
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