DMO vs VXUS
Western Asset Mortgage Opportunity Fund Inc. 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 8,747 holdings.
Side-by-Side Comparison
| Metric | DMO | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 2.10% | 0.05% | |
| AUM | $128M | $158.1B | |
| Dividend Yield | 13.24% | 2.59% | |
| Holdings | 396 | 8,747 | |
| YTD Return | +3.66% | +15.22% | |
| 1Y Return | +0.78% | +26.86% | |
| 3Y Return (annualized) | +12.22% | +20.34% | |
| 5Y Return (annualized) | +3.51% | +9.38% | |
| Volatility (annualized) | 14.5% | 15.1% | |
| Max Drawdown | -60.2% | -39.9% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 24, 2010 | Jan 26, 2011 |
DMO vs VXUS Performance
Western Asset Mortgage Opportunity Fund Inc. (DMO) is a ETF from Franklin Templeton Investments (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year DMO returned +0.78% while VXUS returned +26.86%. Year to date, DMO is up 3.66% versus a gain of 15.22% for VXUS.
Over three years, DMO compounded at +12.22% per year against +20.34% for VXUS; over five years the annualized figures are +3.51% and +9.38% respectively. Across the full 16-year window we track, VXUS has the edge at +4.89% annualized vs -0.05%. 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 14.5% for DMO. 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 -60.2% for DMO 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DMO charges 2.10% per year while VXUS charges 0.05%. On a $10,000 position that is $210 vs $5 annually, a gap of $205 per year that compounds over a long holding period. On income, DMO currently yields 13.24% against 2.59% for VXUS.
Holdings Overlap
DMO and VXUS share 0 holdings out of 7894 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, DMO or VXUS?
DMO has an expense ratio of 2.10% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $205 per year of difference.
Which performed better, DMO or VXUS?
Over the past year DMO returned +0.78% vs +26.86% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), DMO annualized -0.05% vs +4.89% for VXUS. Past performance does not guarantee future results.
Which is riskier, DMO or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 14.5% for DMO. Worst drawdown: DMO -60.2% vs VXUS -39.9%.
Should I hold both DMO and VXUS?
DMO and VXUS have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DMO and VXUS?
DMO and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7894 unique securities.
Which pays a higher dividend, DMO or VXUS?
DMO yields 13.24% while VXUS yields 2.59%, so DMO currently pays the higher dividend yield.
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