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

MetricBSMUVXUSWinner
Expense Ratio0.18%0.05%
AUM$275M$156.5B
Dividend Yield2.79%2.60%
Holdings1,6538,747
YTD Return+0.21%+14.57%
1Y Return+2.96%+27.82%
3Y Return (annualized)+2.86%+19.27%
5Y Return (annualized)-0.96%+9.28%
Volatility (annualized)7.2%15.1%
Max Drawdown-19.5%-39.9%
Fund FamilyInvesco (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionSep 16, 2020Jan 26, 2011

BSMU vs VXUS Performance

Invesco BulletShares 2030 Municipal Bond ETF (BSMU) is a ETF from Invesco (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year BSMU returned +2.96% while VXUS returned +27.82%. Year to date, BSMU is up 0.21% versus a gain of 14.57% for VXUS.

Over three years, BSMU compounded at +2.86% per year against +19.27% for VXUS; over five years the annualized figures are -0.96% and +9.28% respectively. Across the full 6-year window we track, VXUS has the edge at +4.86% annualized vs +0.18%. 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 7.2% for BSMU. 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 -19.5% for BSMU 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 0.73. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

BSMU charges 0.18% per year while VXUS charges 0.05%. On a $10,000 position that is $18 vs $5 annually, a gap of $13 per year that compounds over a long holding period. On income, BSMU currently yields 2.79% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

BSMU and VXUS share 0 holdings out of 8364 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, BSMU or VXUS?

BSMU has an expense ratio of 0.18% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $13 per year of difference.

Which performed better, BSMU or VXUS?

Over the past year BSMU returned +2.96% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (6 years), BSMU annualized +0.18% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, BSMU or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 7.2% for BSMU. Worst drawdown: BSMU -19.5% vs VXUS -39.9%.

Should I hold both BSMU and VXUS?

BSMU and VXUS have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between BSMU and VXUS?

BSMU and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8364 unique securities.

Which pays a higher dividend, BSMU or VXUS?

BSMU yields 2.79% while VXUS yields 2.60%, so BSMU currently pays the higher dividend yield.

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