AAXJ vs VXUS
iShares MSCI All Country Asia ex Japan ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. AAXJ delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | AAXJ | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.72% | 0.05% | |
| AUM | $3.7B | $156.5B | |
| Dividend Yield | 1.29% | 2.60% | |
| Holdings | 956 | 8,747 | |
| YTD Return | +18.65% | +14.57% | |
| 1Y Return | +35.65% | +27.82% | |
| 3Y Return (annualized) | +21.44% | +19.27% | |
| 5Y Return (annualized) | +7.10% | +9.28% | |
| Volatility (annualized) | 20.5% | 15.1% | |
| Max Drawdown | -49.4% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 13, 2008 | Jan 26, 2011 |
AAXJ vs VXUS Performance
iShares MSCI All Country Asia ex Japan ETF (AAXJ) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year AAXJ returned +35.65% while VXUS returned +27.82%. Year to date, AAXJ is up 18.65% versus a gain of 14.57% for VXUS.
Over three years, AAXJ compounded at +21.44% per year against +19.27% for VXUS; over five years the annualized figures are +7.10% and +9.28% respectively. Across the full 16-year window we track, AAXJ has the edge at +5.22% annualized vs +4.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AAXJ has been the more volatile fund, with annualized monthly volatility of 20.5% compared with 15.1% for VXUS. 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 -49.4% for AAXJ 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AAXJ charges 0.72% per year while VXUS charges 0.05%. On a $10,000 position that is $72 vs $5 annually, a gap of $67 per year that compounds over a long holding period. On income, AAXJ currently yields 1.29% against 2.60% for VXUS.
Holdings Overlap
AAXJ and VXUS share 511 holdings out of 8170 unique holdings combined, representing a 13.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in AAXJ | Weight in VXUS | Difference |
|---|---|---|---|
| 2330:TW | 17.04% | 3.41% | 13.63% |
| 000660:KR | 7.62% | 0.90% | 6.72% |
| 9988:HK | 1.84% | 0.73% | 1.11% |
| 2454:TW | Pro | Pro | Pro |
| 2308:TW | Pro | Pro | Pro |
| 1299:HK | Pro | Pro | Pro |
| 2317:TW | Pro | Pro | Pro |
| RELIANCE:MB | Pro | Pro | Pro |
| 402340:KR | Pro | Pro | Pro |
| ICICIBANK:MB | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, AAXJ or VXUS?
AAXJ has an expense ratio of 0.72% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $67 per year of difference.
Which performed better, AAXJ or VXUS?
Over the past year AAXJ returned +35.65% vs +27.82% for VXUS, so AAXJ leads on 1-year performance. Over the longest common window we track (16 years), AAXJ annualized +5.22% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, AAXJ or VXUS?
AAXJ has been the more volatile fund at 20.5% annualized versus 15.1% for VXUS. Worst drawdown: AAXJ -49.4% vs VXUS -39.9%.
Should I hold both AAXJ and VXUS?
AAXJ and VXUS have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AAXJ and VXUS?
AAXJ and VXUS share 511 common holdings with a 13.7% weight overlap. Combined, they hold 8170 unique securities.
Which pays a higher dividend, AAXJ or VXUS?
AAXJ yields 1.29% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.
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