HDEF vs VXUS

HDEF vs VXUS
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Quick Verdict

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

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricHDEFVXUSWinner
Expense Ratio0.09%0.05%
AUM$2.3B$158.1B
Dividend Yield3.68%2.59%
Holdings1238,747
YTD Return+11.48%+15.22%
1Y Return+18.13%+26.86%
3Y Return (annualized)+19.18%+20.34%
5Y Return (annualized)+11.50%+9.38%
Volatility (annualized)14.7%15.1%
Max Drawdown-38.2%-39.9%
Fund FamilyXtrackers ETFsVanguard (US)
CategoryEquityEquity
InceptionAug 12, 2015Jan 26, 2011

HDEF vs VXUS Performance

Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF) is a ETF from Xtrackers ETFs and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year HDEF returned +18.13% while VXUS returned +26.86%. Year to date, HDEF is up 11.48% versus a gain of 15.22% for VXUS.

Over three years, HDEF compounded at +19.18% per year against +20.34% for VXUS; over five years the annualized figures are +11.50% and +9.38% respectively. Across the full 11-year window we track, HDEF has the edge at +5.44% 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 14.7% for HDEF. 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 -38.2% for HDEF 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 0.88. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

HDEF charges 0.09% per year while VXUS charges 0.05%. On a $10,000 position that is $9 vs $5 annually, a gap of $4 per year that compounds over a long holding period. On income, HDEF currently yields 3.68% against 2.59% for VXUS.

Holdings Overlap

5.4%overlap

HDEF and VXUS share 69 holdings out of 7913 unique holdings combined, representing a 5.4% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in HDEFWeight in VXUSDifference
NOVN:SM4.99%0.73%4.26%
NESN:SM4.72%0.62%4.10%
IBE:MA3.49%0.36%3.13%
ULVR:LNProProPro
BATS:LNProProPro
ZURN:SMProProPro
NG:LNProProPro
DPWG.N:FFProProPro
DGE:LNProProPro
SRENH:SMProProPro
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Frequently Asked Questions

Which is cheaper, HDEF or VXUS?

HDEF has an expense ratio of 0.09% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $4 per year of difference.

Which performed better, HDEF or VXUS?

Over the past year HDEF returned +18.13% vs +26.86% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (11 years), HDEF annualized +5.44% vs +4.89% for VXUS. Past performance does not guarantee future results.

Which is riskier, HDEF or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 14.7% for HDEF. Worst drawdown: HDEF -38.2% vs VXUS -39.9%.

Should I hold both HDEF and VXUS?

HDEF and VXUS have a monthly-return correlation of 0.88, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HDEF and VXUS?

HDEF and VXUS share 69 common holdings with a 5.4% weight overlap. Combined, they hold 7913 unique securities.

Which pays a higher dividend, HDEF or VXUS?

HDEF yields 3.68% while VXUS yields 2.59%, so HDEF currently pays the higher dividend yield.

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