The Vanguard Total International Stock Index Fund ETF Shares (VXUS) and the Invesco S&P 500 Equal Weight ETF (RSP) are both among the Top 100 ETFs. VXUS is a Vanguard Foreign Large Blend fund and RSP is a Invesco Large Blend fund. So, what’s the difference between VXUS and RSP? And which fund is better?
The expense ratio of VXUS is 0.12 percentage points lower than RSP’s (0.08% vs. 0.2%). VXUS also has a higher exposure to the financial services sector and a lower standard deviation. Overall, VXUS has provided lower returns than RSP over the past ten years.
In this article, we’ll compare VXUS vs. RSP. We’ll look at risk metrics and industry exposure, as well as at their annual returns and holdings. Moreover, I’ll also discuss VXUS’s and RSP’s portfolio growth, performance, and fund composition and examine how these affect their overall returns.
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Summary
| VXUS | RSP | |
| Name | Vanguard Total International Stock Index Fund ETF Shares | Invesco S&P 500 Equal Weight ETF |
| Category | Foreign Large Blend | Large Blend |
| Issuer | Vanguard | Invesco |
| AUM | 404.73B | 28.62B |
| Avg. Return | 8.41% | 13.79% |
| Div. Yield | 2.44% | 1.31% |
| Expense Ratio | 0.08% | 0.2% |
The Vanguard Total International Stock Index Fund ETF Shares (VXUS) is a Foreign Large Blend fund that is issued by Vanguard. It currently has 404.73B total assets under management and has yielded an average annual return of 8.41% over the past 10 years. The fund has a dividend yield of 2.44% with an expense ratio of 0.08%.
The Invesco S&P 500 Equal Weight ETF (RSP) is a Large Blend fund that is issued by Invesco. It currently has 28.62B total assets under management and has yielded an average annual return of 13.79% over the past 10 years. The fund has a dividend yield of 1.31% with an expense ratio of 0.2%.
VXUS’s dividend yield is 1.13% higher than that of RSP (2.44% vs. 1.31%). Also, VXUS yielded on average 5.38% less per year over the past decade (8.41% vs. 13.79%). The expense ratio of VXUS is 0.12 percentage points lower than RSP’s (0.08% vs. 0.2%).
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Fund Composition
Industry Exposure
| VXUS | RSP | |
| Technology | 13.07% | 14.73% |
| Industrials | 12.94% | 14.62% |
| Energy | 4.55% | 3.9% |
| Communication Services | 7.06% | 4.31% |
| Utilities | 2.94% | 5.58% |
| Healthcare | 9.19% | 13.69% |
| Consumer Defensive | 7.83% | 6.86% |
| Real Estate | 3.79% | 5.84% |
| Financial Services | 17.64% | 13.43% |
| Consumer Cyclical | 12.64% | 13.01% |
| Basic Materials | 8.37% | 4.04% |
The Vanguard Total International Stock Index Fund ETF Shares (VXUS) has the most exposure to the Financial Services sector at 17.64%. This is followed by Technology and Industrials at 13.07% and 12.94% respectively. Real Estate (3.79%), Energy (4.55%), and Communication Services (7.06%) only make up 15.40% of the fund’s total assets.
VXUS’s mid-section with moderate exposure is comprised of Consumer Defensive, Basic Materials, Healthcare, Consumer Cyclical, and Industrials stocks at 7.83%, 8.37%, 9.19%, 12.64%, and 12.94%.
The Invesco S&P 500 Equal Weight ETF (RSP) has the most exposure to the Technology sector at 14.73%. This is followed by Industrials and Healthcare at 14.62% and 13.69% respectively. Basic Materials (4.04%), Communication Services (4.31%), and Utilities (5.58%) only make up 13.93% of the fund’s total assets.
RSP’s mid-section with moderate exposure is comprised of Real Estate, Consumer Defensive, Consumer Cyclical, Financial Services, and Healthcare stocks at 5.84%, 6.86%, 13.01%, 13.43%, and 13.69%.
VXUS is 4.21% more exposed to the Financial Services sector than RSP (17.64% vs 13.43%). VXUS’s exposure to Technology and Industrials stocks is 1.66% lower and 1.68% lower respectively (13.07% vs. 14.73% and 12.94% vs. 14.62%). In total, Real Estate, Energy, and Communication Services also make up 1.35% more of the fund’s holdings compared to RSP (15.40% vs. 14.05%).
Holdings
| VXUS Holdings | Weight |
| Taiwan Semiconductor Manufacturing Co Ltd | 1.62% |
| Tencent Holdings Ltd | 1.41% |
| Alibaba Group Holding Ltd Ordinary Shares | 1.26% |
| Nestle SA | 1.1% |
| Samsung Electronics Co Ltd | 1.05% |
| ASML Holding NV | 0.86% |
| Roche Holding AG | 0.81% |
| Toyota Motor Corp | 0.67% |
| LVMH Moet Hennessy Louis Vuitton SE | 0.61% |
| Novartis AG | 0.6% |
VXUS’s Top Holdings are Taiwan Semiconductor Manufacturing Co Ltd, Tencent Holdings Ltd, Alibaba Group Holding Ltd Ordinary Shares, Nestle SA, and Samsung Electronics Co Ltd at 1.62%, 1.41%, 1.26%, 1.1%, and 1.05%.
ASML Holding NV (0.86%), Roche Holding AG (0.81%), and Toyota Motor Corp (0.67%) have a slightly smaller but still significant weight. LVMH Moet Hennessy Louis Vuitton SE and Novartis AG are also represented in the VXUS’s holdings at 0.61% and 0.6%.
| RSP Holdings | Weight |
| Chipotle Mexican Grill Inc | 0.27% |
| Nike Inc Class B | 0.25% |
| MSCI Inc | 0.25% |
| Monolithic Power Systems Inc | 0.25% |
| Enphase Energy Inc | 0.25% |
| Advanced Micro Devices Inc | 0.25% |
| ResMed Inc | 0.24% |
| PerkinElmer Inc | 0.24% |
| IDEXX Laboratories Inc | 0.24% |
| Danaher Corp | 0.24% |
RSP’s Top Holdings are Chipotle Mexican Grill Inc, Nike Inc Class B, MSCI Inc, Monolithic Power Systems Inc, and Enphase Energy Inc at 0.27%, 0.25%, 0.25%, 0.25%, and 0.25%.
Advanced Micro Devices Inc (0.25%), ResMed Inc (0.24%), and PerkinElmer Inc (0.24%) have a slightly smaller but still significant weight. IDEXX Laboratories Inc and Danaher Corp are also represented in the RSP’s holdings at 0.24% and 0.24%.
Risk Analysis
| VXUS | RSP | |
| Mean Return | 0.56 | 1.19 |
| R-squared | 98.39 | 94.47 |
| Std. Deviation | 15.12 | 15.36 |
| Alpha | 0.31 | -2.45 |
| Beta | 0.99 | 1.1 |
| Sharpe Ratio | 0.4 | 0.89 |
| Treynor Ratio | 5.14 | 12.12 |
The Vanguard Total International Stock Index Fund ETF Shares (VXUS) has a R-squared of 98.39 with a Sharpe Ratio of 0.4 and a Treynor Ratio of 5.14. Its Standard Deviation is 15.12 while VXUS’s Mean Return is 0.56. Furthermore, the fund has a Beta of 0.99 and a Alpha of 0.31.
The Invesco S&P 500 Equal Weight ETF (RSP) has a Beta of 1.1 with a Sharpe Ratio of 0.89 and a Standard Deviation of 15.36. Its Mean Return is 1.19 while RSP’s Alpha is -2.45. Furthermore, the fund has a Treynor Ratio of 12.12 and a R-squared of 94.47.
VXUS’s Mean Return is 0.63 points lower than that of RSP and its R-squared is 3.92 points higher. With a Standard Deviation of 15.12, VXUS is slightly less volatile than RSP. The Alpha and Beta of VXUS are 2.76 points higher and 0.11 points lower than RSP’s Alpha and Beta.
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Performance
Annual Returns
| Year | VXUS | RSP |
| 2020 | 11.32% | 12.75% |
| 2019 | 21.58% | 28.94% |
| 2018 | -14.42% | -7.77% |
| 2017 | 27.52% | 18.52% |
| 2016 | 4.72% | 14.34% |
| 2015 | -4.28% | -2.57% |
| 2014 | -4.17% | 14.02% |
| 2013 | 15.16% | 35.6% |
| 2012 | 18.22% | 17.04% |
| 2011 | 0.0% | -0.5% |
| 2010 | 0.0% | 21.3% |
VXUS had its best year in 2017 with an annual return of 27.52%. VXUS’s worst year over the past decade yielded -14.42% and occurred in 2018. In most years the Vanguard Total International Stock Index Fund ETF Shares provided moderate returns such as in 2010, 2016, and 2020 where annual returns amounted to 0.0%, 4.72%, and 11.32% respectively.
The year 2013 was the strongest year for RSP, returning 35.6% on an annual basis. The poorest year for RSP in the last ten years was 2018, with a yield of -7.77%. Most years the Invesco S&P 500 Equal Weight ETF has given investors modest returns, such as in 2014, 2016, and 2012, when gains were 14.02%, 14.34%, and 17.04% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| VXUS | $10,000 | $19,315 | 8.41% |
| RSP | $10,000 | $32,035 | 13.79% |
A $10,000 investment in VXUS would have resulted in a final balance of $19,315. This is a profit of $9,315 over 9 years and amounts to a compound annual growth rate (CAGR) of 8.41%.
With a $10,000 investment in RSP, the end total would have been $32,035. This equates to a $22,035 profit over 9 years and a compound annual growth rate (CAGR) of 13.79%.
VXUS’s CAGR is 5.38 percentage points lower than that of RSP and as a result, would have yielded $12,720 less on a $10,000 investment. Thus, VXUS performed worse than RSP by 5.38% annually.
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