CAOS 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

MetricCAOSVXUSWinner
Expense Ratio0.63%0.05%
AUM$719M$156.5B
Dividend Yield0.00%2.60%
Holdings178,747
YTD Return+0.79%+14.57%
1Y Return+1.50%+27.82%
3Y Return (annualized)+3.48%+19.27%
5Y Return (annualized)-+9.28%
Volatility (annualized)2.0%15.1%
Max Drawdown-3.6%-39.9%
Fund FamilyAlpha ArchitectVanguard (US)
CategoryAlternativeEquity
InceptionMar 6, 2023Jan 26, 2011

CAOS vs VXUS Performance

Alpha Architect Tail Risk ETF (CAOS) is a ETF from Alpha Architect and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year CAOS returned +1.50% while VXUS returned +27.82%. Year to date, CAOS is up 0.79% versus a gain of 14.57% for VXUS.

Over three years, CAOS compounded at +3.48% per year against +19.27% for VXUS. Across the full 3-year window we track, VXUS has the edge at +4.86% annualized vs +4.82%. 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 2.0% for CAOS. 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 -3.6% for CAOS 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

CAOS charges 0.63% per year while VXUS charges 0.05%. On a $10,000 position that is $63 vs $5 annually, a gap of $58 per year that compounds over a long holding period. On income, CAOS currently yields 0.00% against 2.60% for VXUS.

Frequently Asked Questions

Which is cheaper, CAOS or VXUS?

CAOS has an expense ratio of 0.63% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $58 per year of difference.

Which performed better, CAOS or VXUS?

Over the past year CAOS returned +1.50% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (3 years), CAOS annualized +4.82% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, CAOS or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 2.0% for CAOS. Worst drawdown: CAOS -3.6% vs VXUS -39.9%.

Should I hold both CAOS and VXUS?

CAOS and VXUS have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, CAOS or VXUS?

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

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