BDEC 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

MetricBDECVXUSWinner
Expense Ratio0.79%0.05%
AUM$218M$156.5B
Dividend Yield0.00%2.60%
Holdings68,747
YTD Return+10.14%+14.57%
1Y Return+19.10%+27.82%
3Y Return (annualized)+14.28%+19.27%
5Y Return (annualized)+10.26%+9.28%
Volatility (annualized)12.0%15.1%
Max Drawdown-25.6%-39.9%
Fund FamilyInnovator ETFs TrustVanguard (US)
CategoryAlternativeEquity
InceptionNov 29, 2019Jan 26, 2011

BDEC vs VXUS Performance

Innovator US Equity Buffer ETF - December (BDEC) is a ETF from Innovator ETFs Trust and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year BDEC returned +19.10% while VXUS returned +27.82%. Year to date, BDEC is up 10.14% versus a gain of 14.57% for VXUS.

Over three years, BDEC compounded at +14.28% per year against +19.27% for VXUS; over five years the annualized figures are +10.26% and +9.28% respectively. Across the full 7-year window we track, BDEC has the edge at +11.56% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 12.0% for BDEC. 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 -25.6% for BDEC 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 0.85. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BDEC charges 0.79% per year while VXUS charges 0.05%. On a $10,000 position that is $79 vs $5 annually, a gap of $74 per year that compounds over a long holding period. On income, BDEC currently yields 0.00% against 2.60% for VXUS.

Frequently Asked Questions

Which is cheaper, BDEC or VXUS?

BDEC has an expense ratio of 0.79% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $74 per year of difference.

Which performed better, BDEC or VXUS?

Over the past year BDEC returned +19.10% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (7 years), BDEC annualized +11.56% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, BDEC or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 12.0% for BDEC. Worst drawdown: BDEC -25.6% vs VXUS -39.9%.

Should I hold both BDEC and VXUS?

BDEC and VXUS have a monthly-return correlation of 0.85, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, BDEC or VXUS?

BDEC yields 0.00% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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