DXJ vs VXUS

DXJ vs VXUS
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Quick Verdict

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

Lower Fees: VXUSHigher Returns: DXJMore Diversified: VXUS

Side-by-Side Comparison

MetricDXJVXUSWinner
Expense Ratio0.48%0.05%
AUM$7.4B$158.1B
Dividend Yield0.96%2.59%
Holdings4308,747
YTD Return+26.05%+15.44%
1Y Return+45.06%+26.36%
3Y Return (annualized)+33.46%+20.98%
5Y Return (annualized)+28.28%+9.68%
Volatility (annualized)17.1%15.1%
Max Drawdown-51.1%-39.9%
Fund FamilyWisdomTree InvestmentsVanguard (US)
CategoryEquityEquity
InceptionJun 16, 2006Jan 26, 2011

DXJ vs VXUS Performance

WisdomTree Japan Hedged Equity Fund (DXJ) is a ETF from WisdomTree Investments and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year DXJ returned +45.06% while VXUS returned +26.36%. Year to date, DXJ is up 26.05% versus a gain of 15.44% for VXUS.

Over three years, DXJ compounded at +33.46% per year against +20.98% for VXUS; over five years the annualized figures are +28.28% and +9.68% respectively. Across the full 16-year window we track, DXJ has the edge at +7.38% annualized vs +4.90%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

DXJ has been the more volatile fund, with annualized monthly volatility of 17.1% 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 -51.1% for DXJ 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

DXJ charges 0.48% per year while VXUS charges 0.05%. On a $10,000 position that is $48 vs $5 annually, a gap of $43 per year that compounds over a long holding period. On income, DXJ currently yields 0.96% against 2.59% for VXUS.

Holdings Overlap

5.9%overlap

DXJ and VXUS share 316 holdings out of 7967 unique holdings combined, representing a 5.9% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in DXJWeight in VXUSDifference
8306:JP4.82%0.46%4.36%
8058:JP3.13%0.25%2.88%
8031:JP2.50%0.21%2.29%
2914:JPProProPro
8001:JPProProPro
8035:JPProProPro
8053:JPProProPro
7267:JPProProPro
6501:JPProProPro
8002:JPProProPro
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Frequently Asked Questions

Which is cheaper, DXJ or VXUS?

DXJ has an expense ratio of 0.48% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $43 per year of difference.

Which performed better, DXJ or VXUS?

Over the past year DXJ returned +45.06% vs +26.36% for VXUS, so DXJ leads on 1-year performance. Over the longest common window we track (16 years), DXJ annualized +7.38% vs +4.90% for VXUS. Past performance does not guarantee future results.

Which is riskier, DXJ or VXUS?

DXJ has been the more volatile fund at 17.1% annualized versus 15.1% for VXUS. Worst drawdown: DXJ -51.1% vs VXUS -39.9%.

Should I hold both DXJ and VXUS?

DXJ and VXUS have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between DXJ and VXUS?

DXJ and VXUS share 316 common holdings with a 5.9% weight overlap. Combined, they hold 7967 unique securities.

Which pays a higher dividend, DXJ or VXUS?

DXJ yields 0.96% while VXUS yields 2.59%, so VXUS currently pays the higher dividend yield.

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