LEO vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricLEOVXUSWinner
Expense Ratio0.98%0.05%
AUM$500M$156.5B
Dividend Yield4.24%2.60%
Holdings2628,747
YTD Return+0.37%+14.57%
1Y Return+10.02%+27.82%
3Y Return (annualized)+6.06%+19.27%
5Y Return (annualized)-3.54%+9.28%
Volatility (annualized)12.7%15.1%
Max Drawdown-58.0%-39.9%
Fund FamilyBNY Mellon Investment ManagementVanguard (US)
CategoryTax PreferredEquity
InceptionSep 23, 1987Jan 26, 2011

LEO vs VXUS Performance

BNY Mellon Strategic Municipals Inc (LEO) is a ETF from BNY Mellon Investment Management and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year LEO returned +10.02% while VXUS returned +27.82%. Year to date, LEO is up 0.37% versus a gain of 14.57% for VXUS.

Over three years, LEO compounded at +6.06% per year against +19.27% for VXUS; over five years the annualized figures are -3.54% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs -0.63%. 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 12.7% for LEO. 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 -58.0% for LEO 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

LEO charges 0.98% per year while VXUS charges 0.05%. On a $10,000 position that is $98 vs $5 annually, a gap of $93 per year that compounds over a long holding period. On income, LEO currently yields 4.24% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

LEO and VXUS share 0 holdings out of 8015 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, LEO or VXUS?

LEO has an expense ratio of 0.98% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $93 per year of difference.

Which performed better, LEO or VXUS?

Over the past year LEO returned +10.02% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), LEO annualized -0.63% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, LEO or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 12.7% for LEO. Worst drawdown: LEO -58.0% vs VXUS -39.9%.

Should I hold both LEO and VXUS?

LEO and VXUS have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between LEO and VXUS?

LEO and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8015 unique securities.

Which pays a higher dividend, LEO or VXUS?

LEO yields 4.24% while VXUS yields 2.60%, so LEO currently pays the higher dividend yield.

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