BTZ vs VXUS
BlackRock Credit Allocation Income Trust vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | BTZ | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 1.12% | 0.05% | |
| AUM | $1.0B | $156.5B | |
| Dividend Yield | 9.18% | 2.60% | |
| Holdings | 2,036 | 8,747 | |
| YTD Return | +1.34% | +15.24% | |
| 1Y Return | +2.43% | +26.32% | |
| 3Y Return (annualized) | +10.68% | +19.85% | |
| 5Y Return (annualized) | +0.92% | +9.23% | |
| Volatility (annualized) | 18.2% | 15.1% | |
| Max Drawdown | -80.2% | -39.9% | |
| Fund Family | BlackRock, Inc. (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 27, 2006 | Jan 26, 2011 |
BTZ vs VXUS Performance
BlackRock Credit Allocation Income Trust (BTZ) is a ETF from BlackRock, Inc. (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year BTZ returned +2.43% while VXUS returned +26.32%. Year to date, BTZ is up 1.34% versus a gain of 15.24% for VXUS.
Over three years, BTZ compounded at +10.68% per year against +19.85% for VXUS; over five years the annualized figures are +0.92% and +9.23% respectively. Across the full 16-year window we track, VXUS has the edge at +4.89% annualized vs -1.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
BTZ has been the more volatile fund, with annualized monthly volatility of 18.2% 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 -80.2% for BTZ 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BTZ charges 1.12% per year while VXUS charges 0.05%. On a $10,000 position that is $112 vs $5 annually, a gap of $107 per year that compounds over a long holding period. On income, BTZ currently yields 9.18% against 2.60% for VXUS.
Holdings Overlap
BTZ and VXUS share 1 holdings out of 9001 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in BTZ | Weight in VXUS | Difference |
|---|---|---|---|
| MQG:AU | 0.18% | 0.12% | 0.06% |
Frequently Asked Questions
Which is cheaper, BTZ or VXUS?
BTZ has an expense ratio of 1.12% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $107 per year of difference.
Which performed better, BTZ or VXUS?
Over the past year BTZ returned +2.43% vs +26.32% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), BTZ annualized -1.98% vs +4.89% for VXUS. Past performance does not guarantee future results.
Which is riskier, BTZ or VXUS?
BTZ has been the more volatile fund at 18.2% annualized versus 15.1% for VXUS. Worst drawdown: BTZ -80.2% vs VXUS -39.9%.
Should I hold both BTZ and VXUS?
BTZ and VXUS have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BTZ and VXUS?
BTZ and VXUS share 1 common holdings with a 0.1% weight overlap. Combined, they hold 9001 unique securities.
Which pays a higher dividend, BTZ or VXUS?
BTZ yields 9.18% while VXUS yields 2.60%, so BTZ currently pays the higher dividend yield.
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