REIT 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

MetricREITVXUSWinner
Expense Ratio0.68%0.05%
AUM$59M$156.5B
Dividend Yield3.06%2.60%
Holdings308,747
YTD Return+18.46%+14.57%
1Y Return+21.71%+27.82%
3Y Return (annualized)+10.86%+19.27%
5Y Return (annualized)+4.52%+9.28%
Volatility (annualized)18.0%15.1%
Max Drawdown-29.3%-39.9%
Fund FamilyALPS AdvisorsVanguard (US)
CategoryEquityEquity
InceptionFeb 24, 2021Jan 26, 2011

REIT vs VXUS Performance

ALPS Active REIT ETF (REIT) is a ETF from ALPS Advisors and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year REIT returned +21.71% while VXUS returned +27.82%. Year to date, REIT is up 18.46% versus a gain of 14.57% for VXUS.

Over three years, REIT compounded at +10.86% per year against +19.27% for VXUS; over five years the annualized figures are +4.52% and +9.28% respectively. Across the full 5-year window we track, REIT has the edge at +7.88% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

REIT has been the more volatile fund, with annualized monthly volatility of 18.0% 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 -29.3% for REIT 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 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

REIT charges 0.68% per year while VXUS charges 0.05%. On a $10,000 position that is $68 vs $5 annually, a gap of $63 per year that compounds over a long holding period. On income, REIT currently yields 3.06% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

REIT and VXUS share 0 holdings out of 7890 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, REIT or VXUS?

REIT has an expense ratio of 0.68% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $63 per year of difference.

Which performed better, REIT or VXUS?

Over the past year REIT returned +21.71% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (5 years), REIT annualized +7.88% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, REIT or VXUS?

REIT has been the more volatile fund at 18.0% annualized versus 15.1% for VXUS. Worst drawdown: REIT -29.3% vs VXUS -39.9%.

Should I hold both REIT and VXUS?

REIT and VXUS have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between REIT and VXUS?

REIT and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7890 unique securities.

Which pays a higher dividend, REIT or VXUS?

REIT yields 3.06% while VXUS yields 2.60%, so REIT currently pays the higher dividend yield.

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