HIO vs VXUS

HIO vs VXUS

Which is better, HIO or VXUS?

High Yield Bond against Large Cap Blend.

VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VXUSHigher Returns: VXUS

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

MetricHIOVXUS
Expense Ratio0.94%0.05%Best
AUM$365M$158.1B
Dividend Yield11.09%2.59%
Holdings3388,747
YTD Return+1.38%+16.15%Best
1Y Return-1.48%+27.58%Best
3Y Return (annualized)+8.37%+20.48%Best
5Y Return (annualized)+1.58%+9.09%Best
Volatility (annualized)10.6%Best15.0%
Max Drawdown-54.1%-39.9%Best
$10,000 over 5 years$10,815$15,450Best
Fund FamilyFranklin Templeton Investments (US)Vanguard (US)
CategoryFixed IncomeEquity
StyleHigh Yield BondLarge Cap Blend
InceptionOct 22, 1993Jan 26, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Jan 28, 2011 to Sep 4, 2026 (15.6 years).

HIO 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 15.6 years both funds cover.

HIO vs VXUS Performance

Western Asset High Income Opportunity Fund Inc. (HIO) is an ETF from Franklin Templeton Investments (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year HIO returned -1.48% while VXUS returned +27.58%. Year to date, HIO is up 1.38% versus a gain of 16.15% for VXUS.

Over three years, HIO compounded at +8.37% per year against +20.48% for VXUS; over five years the annualized figures are +1.58% and +9.09% respectively. Across the full 16-year window we track, VXUS has the edge at +4.93% annualized vs -0.14%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 10.6% for HIO. 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 -54.1% for HIO 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 0.67. They move together some of the time, and apart the rest.

Fees and Cost Over Time

HIO charges 0.94% per year while VXUS charges 0.05%. On a $10,000 position that is $94 vs $5 annually, a gap of $89 per year that compounds over a long holding period. On income, HIO currently yields 11.09% against 2.59% for VXUS.

Holdings Overlap

We hold position weights for 213 holdings in HIO and 8,094 in VXUS, totalling 73.9% 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, 1 positions appear in both.

The two holdings books were reported 151 days apart, HIO as of Jan 30, 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.

1 positions in common, counted across the 213 positions we hold weights for in HIO and 8,094 in VXUS, against full books of 338 and 8,747.

Top Shared Holdings

StockWeight in HIOWeight in VXUSDifference
2007:HKCountry Garden Holdings Co Ltd0.00%0.00%0.00%

You are not choosing between two funds in isolation.

Whichever of HIO and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

HIOVXUS

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, HIO or VXUS?

HIO has an expense ratio of 0.94% while VXUS charges 0.05%. VXUS is the cheaper option, by $89 a year on a $10,000 investment.

Which performed better, HIO or VXUS?

Over the past year HIO returned -1.48% vs +27.58% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), HIO annualized -0.14% vs +4.93% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, HIO or VXUS?

VXUS has been the more volatile fund at 15.0% annualized versus 10.6% for HIO. Worst drawdown: HIO -54.1% vs VXUS -39.9%.

Should I hold both HIO and VXUS?

HIO and VXUS have a monthly-return correlation of 0.67, 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, HIO or VXUS?

HIO yields 11.09% while VXUS yields 2.59%, so HIO currently pays the higher dividend yield.

Is VXUS better than HIO?

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.