FTSM vs VXUS
FTSM vs VXUS
First Trust Enhanced Short Maturity ETF 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 | FTSM | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.05% | |
| AUM | $6.5B | $156.5B | |
| Dividend Yield | 4.14% | 2.60% | |
| Holdings | 634 | 8,747 | |
| YTD Return | +1.72% | +13.65% | |
| 1Y Return | +3.54% | +28.53% | |
| 3Y Return (annualized) | +4.67% | +18.64% | |
| 5Y Return (annualized) | +3.52% | +9.00% | |
| Volatility (annualized) | 1.2% | 15.1% | |
| Max Drawdown | -5.4% | -39.9% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 5, 2014 | Jan 26, 2011 |
FTSM vs VXUS Performance
First Trust Enhanced Short Maturity ETF (FTSM) 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 FTSM returned +3.54% while VXUS returned +28.53%. Year to date, FTSM is up 1.72% versus a gain of 13.65% for VXUS.
Over three years, FTSM compounded at +4.67% per year against +18.64% for VXUS; over five years the annualized figures are +3.52% and +9.00% respectively. Across the full 12-year window we track, VXUS has the edge at +4.81% annualized vs +1.46%. 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 1.2% for FTSM. 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 -5.4% for FTSM 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FTSM charges 0.29% per year while VXUS charges 0.05%. On a $10,000 position that is $29 vs $5 annually, a gap of $24 per year that compounds over a long holding period. On income, FTSM currently yields 4.14% against 2.60% for VXUS.
Holdings Overlap
FTSM and VXUS share 0 holdings out of 8251 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, FTSM or VXUS?
FTSM has an expense ratio of 0.29% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $24 per year of difference.
Which performed better, FTSM or VXUS?
Over the past year FTSM returned +3.54% vs +28.53% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (12 years), FTSM annualized +1.46% vs +4.81% for VXUS. Past performance does not guarantee future results.
Which is riskier, FTSM or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 1.2% for FTSM. Worst drawdown: FTSM -5.4% vs VXUS -39.9%.
Should I hold both FTSM and VXUS?
FTSM and VXUS have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FTSM and VXUS?
FTSM and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8251 unique securities.
Which pays a higher dividend, FTSM or VXUS?
FTSM yields 4.14% while VXUS yields 2.60%, so FTSM currently pays the higher dividend yield.
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