LALT vs VXUS
LALT vs VXUS
First Trust Multi-Strategy Alternative 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 7861 holdings.
Side-by-Side Comparison
| Metric | LALT | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 1.18% | 0.05% | |
| AUM | $294M | $156.5B | |
| Dividend Yield | 3.68% | 2.60% | |
| Holdings | 9 | 8,747 | |
| YTD Return | +8.65% | +13.40% | |
| 1Y Return | +16.17% | +27.42% | |
| 3Y Return (annualized) | +9.53% | +18.54% | |
| 5Y Return (annualized) | - | +9.05% | |
| Volatility (annualized) | 4.7% | 15.1% | |
| Max Drawdown | -7.0% | -39.9% | |
| Fund Family | First Trust Portfolios (US) | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jan 31, 2023 | Jan 26, 2011 |
LALT vs VXUS Performance
First Trust Multi-Strategy Alternative ETF (LALT) 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 LALT returned +16.17% while VXUS returned +27.42%. Year to date, LALT is up 8.65% versus a gain of 13.40% for VXUS.
Over three years, LALT compounded at +9.53% per year against +18.54% for VXUS. Across the full 4-year window we track, LALT has the edge at +8.29% annualized vs +4.79%. 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 4.7% for LALT. 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 -7.0% for LALT 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LALT charges 1.18% per year while VXUS charges 0.05%. On a $10,000 position that is $118 vs $5 annually, a gap of $113 per year that compounds over a long holding period. On income, LALT currently yields 3.68% against 2.60% for VXUS.
Holdings Overlap
LALT and VXUS share 0 holdings out of 7868 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, LALT or VXUS?
LALT has an expense ratio of 1.18% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $113 per year of difference.
Which performed better, LALT or VXUS?
Over the past year LALT returned +16.17% vs +27.42% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (4 years), LALT annualized +8.29% vs +4.79% for VXUS. Past performance does not guarantee future results.
Which is riskier, LALT or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 4.7% for LALT. Worst drawdown: LALT -7.0% vs VXUS -39.9%.
Should I hold both LALT and VXUS?
LALT and VXUS have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LALT and VXUS?
LALT and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7868 unique securities.
Which pays a higher dividend, LALT or VXUS?
LALT yields 3.68% while VXUS yields 2.60%, so LALT currently pays the higher dividend yield.
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