MMU vs VXUS
Western Asset Managed Municipals Fund Inc. vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.
Side-by-Side Comparison
| Metric | MMU | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 1.34% | 0.05% | |
| AUM | $592M | $158.1B | |
| Dividend Yield | 6.11% | 2.59% | |
| Holdings | 427 | 8,747 | |
| YTD Return | +0.59% | +14.56% | |
| 1Y Return | +8.65% | +25.24% | |
| 3Y Return (annualized) | +8.27% | +20.38% | |
| 5Y Return (annualized) | -0.69% | +9.32% | |
| Volatility (annualized) | 11.1% | 15.1% | |
| Max Drawdown | -41.0% | -39.9% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jun 26, 1992 | Jan 26, 2011 |
MMU vs VXUS Performance
Western Asset Managed Municipals Fund Inc. (MMU) is a ETF from Franklin Templeton Investments (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year MMU returned +8.65% while VXUS returned +25.24%. Year to date, MMU is up 0.59% versus a gain of 14.56% for VXUS.
Over three years, MMU compounded at +8.27% per year against +20.38% for VXUS; over five years the annualized figures are -0.69% and +9.32% respectively. Across the full 16-year window we track, VXUS has the edge at +4.84% annualized vs +0.31%. 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 11.1% for MMU. 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 -41.0% for MMU 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 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MMU charges 1.34% per year while VXUS charges 0.05%. On a $10,000 position that is $134 vs $5 annually, a gap of $129 per year that compounds over a long holding period. On income, MMU currently yields 6.11% against 2.59% for VXUS.
Holdings Overlap
MMU and VXUS share 0 holdings out of 8090 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, MMU or VXUS?
MMU has an expense ratio of 1.34% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $129 per year of difference.
Which performed better, MMU or VXUS?
Over the past year MMU returned +8.65% vs +25.24% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), MMU annualized +0.31% vs +4.84% for VXUS. Past performance does not guarantee future results.
Which is riskier, MMU or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 11.1% for MMU. Worst drawdown: MMU -41.0% vs VXUS -39.9%.
Should I hold both MMU and VXUS?
MMU and VXUS have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MMU and VXUS?
MMU and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8090 unique securities.
Which pays a higher dividend, MMU or VXUS?
MMU yields 6.11% while VXUS yields 2.59%, so MMU currently pays the higher dividend yield.
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