HEQ vs VXUS
John Hancock Hedged Equity & Income Fund vs Vanguard Total International Stock ETF
Which is better, HEQ or VXUS?
Large Cap Value against Large Cap Blend.
VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | HEQ | VXUS |
|---|---|---|
| Expense Ratio | 1.16% | 0.05%Best |
| AUM | $146M | $158.1B |
| Dividend Yield | 7.86% | 2.59% |
| Holdings | 640 | 8,747 |
| YTD Return | +15.12% | +16.15%Best |
| 1Y Return | +20.23% | +27.58%Best |
| 3Y Return (annualized) | +14.08% | +20.48%Best |
| 5Y Return (annualized) | +7.11% | +9.09%Best |
| Volatility (annualized) | 15.3% | 15.1%Best |
| Max Drawdown | -59.7% | -39.9%Best |
| $10,000 over 5 years | $14,098 | $15,450Best |
| Fund Family | John Hancock Investment Management | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Value | Large Cap Blend |
| Inception | May 26, 2011 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: May 26, 2011 to Sep 4, 2026 (15.3 years).
HEQ vs VXUS growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 15.3 years both funds cover.
HEQ vs VXUS Performance
John Hancock Hedged Equity & Income Fund (HEQ) is an ETF from John Hancock Investment Management and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year HEQ returned +20.23% while VXUS returned +27.58%. Year to date, HEQ is up 15.12% versus a gain of 16.15% for VXUS.
Over three years, HEQ compounded at +14.08% per year against +20.48% for VXUS; over five years the annualized figures are +7.11% and +9.09% respectively. Across the full 15-year window we track, VXUS has the edge at +4.83% annualized vs -0.04%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HEQ has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -59.7% for HEQ and -39.9% for VXUS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HEQ charges 1.16% per year while VXUS charges 0.05%. On a $10,000 position that is $116 vs $5 annually, a gap of $111 per year that compounds over a long holding period. On income, HEQ currently yields 7.86% against 2.59% for VXUS.
Holdings Overlap
We hold position weights for 424 holdings in HEQ and 8,094 in VXUS, totalling 83.6% and 87.7% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 88 positions appear in both.
The two holdings books were reported 91 days apart, HEQ as of Mar 31, 2026 and VXUS as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
88 positions in common, counted across the 424 positions we hold weights for in HEQ and 8,094 in VXUS, against full books of 640 and 8,747.
Top Shared Holdings
| Stock | Weight in HEQ | Weight in VXUS | Difference |
|---|---|---|---|
| 000660:KRSk Hynix Inc | 0.05% | 2.17% | 2.12% |
| ASML:ASASML HOLDING NV | 0.05% | 1.70% | 1.65% |
| NOVN:SMNovartis Ag – Class N | 0.57% | 0.65% | 0.08% |
| BHP:AUBhp Group Ltd | 0.56% | 0.30% | 0.26% |
| BBVA:MABanco Bilbao Vizcaya Argenta | 0.43% | 0.31% | 0.12% |
| LLOY:LNLloyds Banking Group Plc - Common | 0.53% | 0.19% | 0.34% |
| NHY:OSNorsk Hydro A S Ads Ordinary Shares | 0.66% | 0.03% | 0.63% |
| NESN:SMNestlã S.A., Registered Shares | 0.10% | 0.59% | 0.49% |
| RIO:LNRio Tinto Plc Ord Gbp.10 | 0.45% | 0.22% | 0.23% |
| SDR:LNSchroders Plc | 0.61% | 0.01% | 0.60% |
You are not choosing between two funds in isolation.
Whichever of HEQ and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, HEQ or VXUS?
HEQ has an expense ratio of 1.16% while VXUS charges 0.05%. VXUS is the cheaper option, by $111 a year on a $10,000 investment.
Which performed better, HEQ or VXUS?
Over the past year HEQ returned +20.23% vs +27.58% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (15 years), HEQ annualized -0.04% vs +4.83% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HEQ or VXUS?
HEQ has been the more volatile fund at 15.3% annualized versus 15.1% for VXUS. Worst drawdown: HEQ -59.7% vs VXUS -39.9%.
Should I hold both HEQ and VXUS?
HEQ and VXUS have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, HEQ or VXUS?
HEQ yields 7.86% while VXUS yields 2.59%, so HEQ currently pays the higher dividend yield.
Is VXUS better than HEQ?
VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.