DBAW vs VXUS

Quick Verdict

VXUS has a lower expense ratio. DBAW delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.

Lower Fees: VXUSHigher Returns: DBAWMore Diversified: VXUS

Side-by-Side Comparison

MetricDBAWVXUSWinner
Expense Ratio0.40%0.05%
AUM$304M$158.1B
Dividend Yield1.73%2.59%
Holdings1,8308,747
YTD Return+16.56%+15.22%
1Y Return+29.76%+26.86%
3Y Return (annualized)+21.77%+20.34%
5Y Return (annualized)+12.73%+9.38%
Volatility (annualized)12.2%15.1%
Max Drawdown-31.4%-39.9%
Fund FamilyXtrackers ETFsVanguard (US)
CategoryEquityEquity
InceptionJan 22, 2014Jan 26, 2011

DBAW vs VXUS Performance

Xtrackers MSCI All World ex US Hedged Equity ETF (DBAW) is a ETF from Xtrackers ETFs and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year DBAW returned +29.76% while VXUS returned +26.86%. Year to date, DBAW is up 16.56% versus a gain of 15.22% for VXUS.

Over three years, DBAW compounded at +21.77% per year against +20.34% for VXUS; over five years the annualized figures are +12.73% and +9.38% respectively. Across the full 13-year window we track, DBAW has the edge at +7.77% annualized vs +4.89%. 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 12.2% for DBAW. 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 -31.4% for DBAW 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

DBAW charges 0.40% per year while VXUS charges 0.05%. On a $10,000 position that is $40 vs $5 annually, a gap of $35 per year that compounds over a long holding period. On income, DBAW currently yields 1.73% against 2.59% for VXUS.

Holdings Overlap

61.0%overlap

DBAW and VXUS share 1350 holdings out of 8270 unique holdings combined, representing a 61.0% weight overlap.

High overlap means holding both may not provide much additional diversification.

Top Shared Holdings

StockWeight in DBAWWeight in VXUSDifference
2330:TW4.74%3.41%1.33%
ASML:AS1.85%1.29%0.56%
000660:KR1.77%0.90%0.87%
0700:HKProProPro
HSBA:LNProProPro
NOVN:SMProProPro
AZN:LNProProPro
9988:HKProProPro
RY:CAProProPro
NESN:SMProProPro
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Frequently Asked Questions

Which is cheaper, DBAW or VXUS?

DBAW has an expense ratio of 0.40% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $35 per year of difference.

Which performed better, DBAW or VXUS?

Over the past year DBAW returned +29.76% vs +26.86% for VXUS, so DBAW leads on 1-year performance. Over the longest common window we track (13 years), DBAW annualized +7.77% vs +4.89% for VXUS. Past performance does not guarantee future results.

Which is riskier, DBAW or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 12.2% for DBAW. Worst drawdown: DBAW -31.4% vs VXUS -39.9%.

Should I hold both DBAW and VXUS?

DBAW and VXUS have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between DBAW and VXUS?

DBAW and VXUS share 1350 common holdings with a 61.0% weight overlap. Combined, they hold 8270 unique securities.

Which pays a higher dividend, DBAW or VXUS?

DBAW yields 1.73% while VXUS yields 2.59%, so VXUS currently pays the higher dividend yield.

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