DWAT 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

MetricDWATVXUSWinner
Expense Ratio1.83%0.05%
AUM$2M$156.5B
Dividend Yield10.89%2.60%
Holdings128,747
YTD Return-4.04%+14.57%
1Y Return+0.06%+27.82%
3Y Return (annualized)+0.81%+19.27%
5Y Return (annualized)+8.05%+9.28%
Volatility (annualized)12.8%15.1%
Max Drawdown-34.7%-39.9%
Fund FamilyArrow Investment TrustVanguard (US)
CategoryAllocation/BalancedEquity
InceptionOct 1, 2014Jan 26, 2011

DWAT vs VXUS Performance

Arrow DWA Tactical ETF (DWAT) is a ETF from Arrow Investment Trust and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year DWAT returned +0.06% while VXUS returned +27.82%. Year to date, DWAT is down 4.04% versus a gain of 14.57% for VXUS.

Over three years, DWAT compounded at +0.81% per year against +19.27% for VXUS; over five years the annualized figures are +8.05% and +9.28% respectively. Across the full 11-year window we track, VXUS has the edge at +4.86% annualized vs +4.84%. 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 12.8% for DWAT. 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 -34.7% for DWAT 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 0.70. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

DWAT charges 1.83% per year while VXUS charges 0.05%. On a $10,000 position that is $183 vs $5 annually, a gap of $178 per year that compounds over a long holding period. On income, DWAT currently yields 10.89% against 2.60% for VXUS.

Frequently Asked Questions

Which is cheaper, DWAT or VXUS?

DWAT has an expense ratio of 1.83% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $178 per year of difference.

Which performed better, DWAT or VXUS?

Over the past year DWAT returned +0.06% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (11 years), DWAT annualized +4.84% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, DWAT or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 12.8% for DWAT. Worst drawdown: DWAT -34.7% vs VXUS -39.9%.

Should I hold both DWAT and VXUS?

DWAT and VXUS have a monthly-return correlation of 0.70, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, DWAT or VXUS?

DWAT yields 10.89% while VXUS yields 2.60%, so DWAT currently pays the higher dividend yield.

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