GOVZ vs VXUS
iShares 25+ Year Treasury STRIPS Bond ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. GOVZ delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | GOVZ | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.05% | |
| AUM | $268M | $156.5B | |
| Dividend Yield | 4.77% | 2.60% | |
| Holdings | 22 | 8,747 | |
| YTD Return | +262.19% | +14.07% | |
| 1Y Return | +261.52% | +27.24% | |
| 3Y Return (annualized) | +46.81% | +19.27% | |
| 5Y Return (annualized) | +12.86% | +9.14% | |
| Volatility (annualized) | 126.3% | 15.1% | |
| Max Drawdown | -59.6% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 22, 2020 | Jan 26, 2011 |
GOVZ vs VXUS Performance
iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year GOVZ returned +261.52% while VXUS returned +27.24%. Year to date, GOVZ is up 262.19% versus a gain of 14.07% for VXUS.
Over three years, GOVZ compounded at +46.81% per year against +19.27% for VXUS; over five years the annualized figures are +12.86% and +9.14% respectively. Across the full 6-year window we track, GOVZ has the edge at +8.11% annualized vs +4.83%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
GOVZ has been the more volatile fund, with annualized monthly volatility of 126.3% 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 -59.6% for GOVZ 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 0.17. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
GOVZ charges 0.10% per year while VXUS charges 0.05%. On a $10,000 position that is $10 vs $5 annually, a gap of $5 per year that compounds over a long holding period. On income, GOVZ currently yields 4.77% against 2.60% for VXUS.
Holdings Overlap
GOVZ and VXUS share 0 holdings out of 7873 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, GOVZ or VXUS?
GOVZ has an expense ratio of 0.10% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, GOVZ or VXUS?
Over the past year GOVZ returned +261.52% vs +27.24% for VXUS, so GOVZ leads on 1-year performance. Over the longest common window we track (6 years), GOVZ annualized +8.11% vs +4.83% for VXUS. Past performance does not guarantee future results.
Which is riskier, GOVZ or VXUS?
GOVZ has been the more volatile fund at 126.3% annualized versus 15.1% for VXUS. Worst drawdown: GOVZ -59.6% vs VXUS -39.9%.
Should I hold both GOVZ and VXUS?
GOVZ and VXUS have a monthly-return correlation of 0.17, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GOVZ and VXUS?
GOVZ and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7873 unique securities.
Which pays a higher dividend, GOVZ or VXUS?
GOVZ yields 4.77% while VXUS yields 2.60%, so GOVZ currently pays the higher dividend yield.
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