NEWFX vs. VTPSX
Compare and contrast key facts about American Funds New World Fund (NEWFX) and Vanguard Total International Stock Index Fund Institutional Plus Shares (VTPSX).
NEWFX is managed by American Funds. It was launched on Jun 16, 1999. VTPSX is managed by Vanguard. It was launched on Nov 30, 2010.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: NEWFX or VTPSX.
Key characteristics
| NEWFX | VTPSX | |
|---|---|---|
| YTD Return | 9.32% | 9.56% |
| 1Y Return | 15.35% | 16.89% |
| 3Y Return (Ann) | -1.62% | 1.87% |
| 5Y Return (Ann) | 6.87% | 6.79% |
| 10Y Return (Ann) | 5.84% | 4.74% |
| Sharpe Ratio | 1.31 | 1.36 |
| Daily Std Dev | 11.42% | 12.06% |
| Max Drawdown | -56.09% | -35.77% |
| Current Drawdown | -7.20% | -1.08% |
Correlation
The correlation between NEWFX and VTPSX is 0.93, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
NEWFX vs. VTPSX - Performance Comparison
The year-to-date returns for both investments are quite close, with NEWFX having a 9.32% return and VTPSX slightly higher at 9.56%. Over the past 10 years, NEWFX has outperformed VTPSX with an annualized return of 5.84%, while VTPSX has yielded a comparatively lower 4.74% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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NEWFX vs. VTPSX - Expense Ratio Comparison
NEWFX has a 0.96% expense ratio, which is higher than VTPSX's 0.07% expense ratio.
Risk-Adjusted Performance
NEWFX vs. VTPSX - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for American Funds New World Fund (NEWFX) and Vanguard Total International Stock Index Fund Institutional Plus Shares (VTPSX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
NEWFX vs. VTPSX - Dividend Comparison
NEWFX's dividend yield for the trailing twelve months is around 2.25%, less than VTPSX's 2.48% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
NEWFX American Funds New World Fund | 2.25% | 2.46% | 0.89% | 6.89% | 0.10% | 3.65% | 2.26% | 1.90% | 0.92% | 0.60% | 6.75% | 2.97% |
VTPSX Vanguard Total International Stock Index Fund Institutional Plus Shares | 2.48% | 3.25% | 3.09% | 3.09% | 2.13% | 3.08% | 3.20% | 2.77% | 2.97% | 2.89% | 3.44% | 2.74% |
Drawdowns
NEWFX vs. VTPSX - Drawdown Comparison
The maximum NEWFX drawdown since its inception was -56.09%, which is greater than VTPSX's maximum drawdown of -35.77%. Use the drawdown chart below to compare losses from any high point for NEWFX and VTPSX. For additional features, visit the drawdowns tool.
Volatility
NEWFX vs. VTPSX - Volatility Comparison
American Funds New World Fund (NEWFX) and Vanguard Total International Stock Index Fund Institutional Plus Shares (VTPSX) have volatilities of 3.73% and 3.90%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.