SMB vs VXUS
SMB vs VXUS
VanEck Short Muni ETF 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 7861 holdings.
Side-by-Side Comparison
| Metric | SMB | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.07% | 0.05% | |
| AUM | $312M | $156.5B | |
| Dividend Yield | 2.69% | 2.60% | |
| Holdings | 333 | 8,747 | |
| YTD Return | -1.06% | +14.57% | |
| 1Y Return | +0.54% | +27.82% | |
| 3Y Return (annualized) | +2.83% | +19.27% | |
| 5Y Return (annualized) | +0.78% | +9.28% | |
| Volatility (annualized) | 20.6% | 15.1% | |
| Max Drawdown | -29.3% | -39.9% | |
| Fund Family | VanEck | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Feb 22, 2008 | Jan 26, 2011 |
SMB vs VXUS Performance
VanEck Short Muni ETF (SMB) is a ETF from VanEck and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year SMB returned +0.54% while VXUS returned +27.82%. Year to date, SMB is down 1.06% versus a gain of 14.57% for VXUS.
Over three years, SMB compounded at +2.83% per year against +19.27% for VXUS; over five years the annualized figures are +0.78% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs +1.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SMB has been the more volatile fund, with annualized monthly volatility of 20.6% 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 SMB 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
SMB charges 0.07% per year while VXUS charges 0.05%. On a $10,000 position that is $7 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, SMB currently yields 2.69% against 2.60% for VXUS.
Holdings Overlap
SMB and VXUS share 0 holdings out of 8038 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, SMB or VXUS?
SMB has an expense ratio of 0.07% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, SMB or VXUS?
Over the past year SMB returned +0.54% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), SMB annualized +1.87% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, SMB or VXUS?
SMB has been the more volatile fund at 20.6% annualized versus 15.1% for VXUS. Worst drawdown: SMB -29.3% vs VXUS -39.9%.
Should I hold both SMB and VXUS?
SMB 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 SMB and VXUS?
SMB and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8038 unique securities.
Which pays a higher dividend, SMB or VXUS?
SMB yields 2.69% while VXUS yields 2.60%, so SMB currently pays the higher dividend yield.
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