BABO vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricBABOVXUSWinner
Expense Ratio1.00%0.05%
AUM$17M$156.5B
Dividend Yield110.77%2.60%
Holdings118,747
YTD Return-18.34%+14.57%
1Y Return+0.95%+27.82%
3Y Return (annualized)-+19.27%
5Y Return (annualized)-+9.28%
Volatility (annualized)41.4%15.1%
Max Drawdown-42.6%-39.9%
Fund FamilyYieldMax ETFVanguard (US)
CategoryAlternativeEquity
InceptionAug 7, 2024Jan 26, 2011

BABO vs VXUS Performance

YieldMax BABA Option Income Strategy ETF (BABO) is a ETF from YieldMax ETF and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year BABO returned +0.95% while VXUS returned +27.82%. Year to date, BABO is down 18.34% versus a gain of 14.57% for VXUS.

Risk: Volatility and Drawdowns

BABO has been the more volatile fund, with annualized monthly volatility of 41.4% 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 -42.6% for BABO 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 0.25. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

BABO charges 1.00% per year while VXUS charges 0.05%. On a $10,000 position that is $100 vs $5 annually, a gap of $95 per year that compounds over a long holding period. On income, BABO currently yields 110.77% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

BABO and VXUS share 0 holdings out of 7864 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, BABO or VXUS?

BABO has an expense ratio of 1.00% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $95 per year of difference.

Which performed better, BABO or VXUS?

Over the past year BABO returned +0.95% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (2 years), BABO annualized +12.21% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, BABO or VXUS?

BABO has been the more volatile fund at 41.4% annualized versus 15.1% for VXUS. Worst drawdown: BABO -42.6% vs VXUS -39.9%.

Should I hold both BABO and VXUS?

BABO and VXUS have a monthly-return correlation of 0.25, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BABO and VXUS?

BABO and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7864 unique securities.

Which pays a higher dividend, BABO or VXUS?

BABO yields 110.77% while VXUS yields 2.60%, so BABO currently pays the higher dividend yield.

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