MZZ 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

MetricMZZVXUSWinner
Expense Ratio0.95%0.05%
AUM$2M$156.5B
Dividend Yield5.88%2.60%
Holdings58,747
YTD Return-25.71%+14.57%
1Y Return-34.90%+27.82%
3Y Return (annualized)-22.05%+19.27%
5Y Return (annualized)-17.60%+9.28%
Volatility (annualized)34.9%15.1%
Max Drawdown-99.9%-39.9%
Fund FamilyProSharesVanguard (US)
CategoryAlternativeEquity
InceptionJul 11, 2006Jan 26, 2011

MZZ vs VXUS Performance

ProShares UltraShort MidCap 400 (MZZ) is a ETF from ProShares and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year MZZ returned -34.90% while VXUS returned +27.82%. Year to date, MZZ is down 25.71% versus a gain of 14.57% for VXUS.

Over three years, MZZ compounded at -22.05% per year against +19.27% for VXUS; over five years the annualized figures are -17.60% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs -31.09%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

MZZ has been the more volatile fund, with annualized monthly volatility of 34.9% 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 -99.9% for MZZ 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 -0.79. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

MZZ charges 0.95% per year while VXUS charges 0.05%. On a $10,000 position that is $95 vs $5 annually, a gap of $90 per year that compounds over a long holding period. On income, MZZ currently yields 5.88% against 2.60% for VXUS.

Frequently Asked Questions

Which is cheaper, MZZ or VXUS?

MZZ has an expense ratio of 0.95% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $90 per year of difference.

Which performed better, MZZ or VXUS?

Over the past year MZZ returned -34.90% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), MZZ annualized -31.09% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, MZZ or VXUS?

MZZ has been the more volatile fund at 34.9% annualized versus 15.1% for VXUS. Worst drawdown: MZZ -99.9% vs VXUS -39.9%.

Should I hold both MZZ and VXUS?

MZZ and VXUS have a monthly-return correlation of -0.79, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, MZZ or VXUS?

MZZ yields 5.88% while VXUS yields 2.60%, so MZZ currently pays the higher dividend yield.

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