HEZU vs VTI

Quick Verdict

VTI has a lower expense ratio. HEZU delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.

Lower Fees: VTIHigher Returns: HEZUMore Diversified: VTI

Side-by-Side Comparison

MetricHEZUVTIWinner
Expense Ratio0.53%0.03%
AUM$591M$666.9B
Dividend Yield2.56%1.07%
Holdings2333,543
YTD Return+15.55%+14.96%
1Y Return+26.28%+22.39%
3Y Return (annualized)+20.00%+21.51%
5Y Return (annualized)+13.03%+12.36%
Volatility (annualized)15.9%15.4%
Max Drawdown-38.8%-56.6%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionJul 9, 2014May 24, 2001

HEZU vs VTI Performance

iShares Currency Hedged MSCI Eurozone ETF (HEZU) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year HEZU returned +26.28% while VTI returned +22.39%. Year to date, HEZU is up 15.55% versus a gain of 14.96% for VTI.

Over three years, HEZU compounded at +20.00% per year against +21.51% for VTI; over five years the annualized figures are +13.03% and +12.36% respectively. Across the full 12-year window we track, HEZU has the edge at +9.38% annualized vs +8.16%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

HEZU has been the more volatile fund, with annualized monthly volatility of 15.9% compared with 15.4% for VTI. 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 -38.8% for HEZU and -56.6% for VTI. 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 0.77. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

HEZU charges 0.53% per year while VTI charges 0.03%. On a $10,000 position that is $53 vs $3 annually, a gap of $50 per year that compounds over a long holding period. On income, HEZU currently yields 2.56% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

HEZU and VTI share 0 holdings out of 2800 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, HEZU or VTI?

HEZU has an expense ratio of 0.53% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $50 per year of difference.

Which performed better, HEZU or VTI?

Over the past year HEZU returned +26.28% vs +22.39% for VTI, so HEZU leads on 1-year performance. Over the longest common window we track (12 years), HEZU annualized +9.38% vs +8.16% for VTI. Past performance does not guarantee future results.

Which is riskier, HEZU or VTI?

HEZU has been the more volatile fund at 15.9% annualized versus 15.4% for VTI. Worst drawdown: HEZU -38.8% vs VTI -56.6%.

Should I hold both HEZU and VTI?

HEZU and VTI have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HEZU and VTI?

HEZU and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2800 unique securities.

Which pays a higher dividend, HEZU or VTI?

HEZU yields 2.56% while VTI yields 1.07%, so HEZU currently pays the higher dividend yield.

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