Quick Verdict

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

Lower Fees: VXUSHigher Returns: SMMDMore Diversified: VXUS

Side-by-Side Comparison

MetricSMMDVXUSWinner
Expense Ratio0.15%0.05%
AUM$3.6B$156.5B
Dividend Yield1.05%2.60%
Holdings5208,747
YTD Return+22.15%+14.57%
1Y Return+35.68%+27.82%
3Y Return (annualized)+17.77%+19.27%
5Y Return (annualized)+8.78%+9.28%
Volatility (annualized)20.4%15.1%
Max Drawdown-41.1%-39.9%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionJul 6, 2017Jan 26, 2011

SMMD vs VXUS Performance

iShares Russell 2500 ETF (SMMD) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year SMMD returned +35.68% while VXUS returned +27.82%. Year to date, SMMD is up 22.15% versus a gain of 14.57% for VXUS.

Over three years, SMMD compounded at +17.77% per year against +19.27% for VXUS; over five years the annualized figures are +8.78% and +9.28% respectively. Across the full 9-year window we track, SMMD has the edge at +10.66% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SMMD has been the more volatile fund, with annualized monthly volatility of 20.4% 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 -41.1% for SMMD 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 0.84. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

SMMD charges 0.15% per year while VXUS charges 0.05%. On a $10,000 position that is $15 vs $5 annually, a gap of $10 per year that compounds over a long holding period. On income, SMMD currently yields 1.05% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

SMMD and VXUS share 2 holdings out of 7890 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in SMMDWeight in VXUSDifference
GFL:CA0.14%0.02%0.12%
BILL0.05%0.00%0.05%

Frequently Asked Questions

Which is cheaper, SMMD or VXUS?

SMMD has an expense ratio of 0.15% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $10 per year of difference.

Which performed better, SMMD or VXUS?

Over the past year SMMD returned +35.68% vs +27.82% for VXUS, so SMMD leads on 1-year performance. Over the longest common window we track (9 years), SMMD annualized +10.66% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, SMMD or VXUS?

SMMD has been the more volatile fund at 20.4% annualized versus 15.1% for VXUS. Worst drawdown: SMMD -41.1% vs VXUS -39.9%.

Should I hold both SMMD and VXUS?

SMMD and VXUS have a monthly-return correlation of 0.84, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between SMMD and VXUS?

SMMD and VXUS share 2 common holdings with a 0.0% weight overlap. Combined, they hold 7890 unique securities.

Which pays a higher dividend, SMMD or VXUS?

SMMD yields 1.05% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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