USFI vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricUSFIVXUSWinner
Expense Ratio0.39%0.05%
AUM$10M$156.5B
Dividend Yield4.25%2.60%
Holdings598,747
YTD Return+0.72%+13.65%
1Y Return+2.69%+28.53%
3Y Return (annualized)+4.23%+18.64%
5Y Return (annualized)-+9.00%
Volatility (annualized)7.2%15.1%
Max Drawdown-8.5%-39.9%
Fund FamilyFranklin Templeton Investments (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionJul 25, 2023Jan 26, 2011

USFI vs VXUS Performance

BrandywineGLOBAL - US Fixed Income ETF (USFI) is a ETF from Franklin Templeton Investments (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year USFI returned +2.69% while VXUS returned +28.53%. Year to date, USFI is up 0.72% versus a gain of 13.65% for VXUS.

Over three years, USFI compounded at +4.23% per year against +18.64% for VXUS. Across the full 3-year window we track, VXUS has the edge at +4.81% annualized vs +3.82%. 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 7.2% for USFI. 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 -8.5% for USFI 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

USFI charges 0.39% per year while VXUS charges 0.05%. On a $10,000 position that is $39 vs $5 annually, a gap of $34 per year that compounds over a long holding period. On income, USFI currently yields 4.25% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

USFI and VXUS share 0 holdings out of 7902 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, USFI or VXUS?

USFI has an expense ratio of 0.39% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $34 per year of difference.

Which performed better, USFI or VXUS?

Over the past year USFI returned +2.69% vs +28.53% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (3 years), USFI annualized +3.82% vs +4.81% for VXUS. Past performance does not guarantee future results.

Which is riskier, USFI or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 7.2% for USFI. Worst drawdown: USFI -8.5% vs VXUS -39.9%.

Should I hold both USFI and VXUS?

USFI and VXUS have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between USFI and VXUS?

USFI and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7902 unique securities.

Which pays a higher dividend, USFI or VXUS?

USFI yields 4.25% while VXUS yields 2.60%, so USFI currently pays the higher dividend yield.

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