PWV vs VXUS Fund Comparison

A comparison between PWV and VXUS based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on PWV vs VXUS

Here's an in depth look at the differences between Invesco Dynamic Large Cap Value ETF ($PWV) and Vanguard Total International Stock Index Fund ETF Shares ($VXUS).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

53% FI Score
  • pwv
  • ETF
  • US Stocks
  • Large Value

Invesco Dynamic Large Cap Value ETF

Expenses: 0.55% (Better than 1% of similar funds)

This is an OK choice for a Large Value US Stocks fund. See why »

92% FI Score
  • vxus
  • ETF
  • International Stocks
  • Large Blend

Vanguard Total International Stock Index Fund ETF Shares

Expenses: 0.08% (Better than 1% of similar funds)

This is a great choice for a Large Blend International Stocks fund. See why »

Both $PWV and $VXUS are categorized as ETFs. ETFs have an added bonus over mutual funds of being more widely available. Mutual funds are often limited to only the issuing investment brokerage. Since these are both ETFs, you may be able to find these at a wider number of investment apps and websites.

The biggest disadvantage of ETFs is that some platforms only allow you to purchase ETFs in whole shares. So if an ETF is going for $75, you may need to invest in increments of $75. Most 401(k)'s allow for investing down to the penny, but you'll want to verify your platform allows for "fractional ETF Shares".

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

PWV VXUS
Market Score 5.4 /10 9.9 /10
Category Score 8.0 /10 10.0 /10
Total 13.4 19.9

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

For each fund we've created a "diversification score" – a metric to indicate how closely each funds asset allocation matches it's benchmark. For example, an S&P 500 fund would have a diversification score of 10 if it's fully in line with the actual S&P 500.

The diversification score for PWV is 2.0/10, while VXUS has a diversification score of 7.6/10.

In other words, VXUS more closely matches it's benchmark.

Winner: $VXUS

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, PWV has an expense ratio of 0.55% while VXUS has an expense ratio of 0.08%. In this case, both of these funds have a similar fee.

Winner: $VXUS (barely)

Fund Size Comparison

One place these two funds differ is in their total assets under management. This is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

In the case of these two funds, PWV is a medium fund with 685 Million in assets under management. VXUS, on the other hand, is a large fund with 390 Billion in assets under management.

Winner: $VXUS, Vanguard Total International Stock Index Fund ETF Shares

Which Should You Choose? PWV or VXUS?

Comparing these two funds isn't an apples to apples comparison. PWV is a US Stocks Large Value fund, while VXUS is a International Stocks Large Blend fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives PWV a score of 53 and VXUS a score of 92.

Winner: $VXUS, Vanguard Total International Stock Index Fund ETF Shares

$PWV

Invesco Dynamic Large Cap Value ETF

53

Read More
Ratings
Rating Type Rating
Diversification Score 2 /10
Expense Ratio Score 8 /10
Expense Rating 5 /10
Market Score 5 /10
Category Score 8 /10
Overview
Overview Details
Fund Type ETF
Inception Date Mar-3-2005
Exchange NYSE ARCA
Expense Ratio 0.550%
Net Assets 685 Million
Yield 2.73%
Holdings
Description Info
Market US Stocks
Category Large Value
Sectors
  • Basic Materials 0.00%
  • Communication Services 6.76%
  • Consumer Cyclicals 0.00%
  • Consumer Defensive 11.01%
  • Energy 2.72%
  • Financial Services 29.13%
  • Healthcare 14.56%
  • Industrials 10.62%
  • Real Estate 0.00%
  • Technology 16.37%
  • Utilities 8.81%
Regions
  • North America 100.00%

$VXUS

Vanguard Total International Stock Index Fund ETF Shares

92

Read More
Ratings
Rating Type Rating
Diversification Score 8 /10
Expense Ratio Score 9 /10
Expense Rating 9 /10
Market Score 10 /10
Category Score 10 /10
Overview
Overview Details
Fund Type ETF
Inception Date Aug-5-2008
Exchange NASDAQ
Expense Ratio 0.080%
Net Assets 390 Billion
Yield 3.46%
Holdings
Description Info
Market International Stocks
Category Large Blend
Sectors
  • Basic Materials 7.70%
  • Communication Services 7.84%
  • Consumer Cyclicals 10.77%
  • Consumer Defensive 9.83%
  • Energy 5.03%
  • Financial Services 17.51%
  • Healthcare 10.79%
  • Industrials 12.56%
  • Real Estate 3.78%
  • Technology 10.69%
  • Utilities 3.51%
Regions
  • Africa/Middle East 2.71%
  • Asia Developed 10.38%
  • Asia Emerging 14.67%
  • Australasia 4.47%
  • Europe Developed 29.54%
  • Europe Emerging 1.51%
  • Japan 17.62%
  • Latin America 2.09%
  • North America 7.20%
  • United Kingdom 9.81%

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