TAFI vs VXUS
TAFI vs VXUS
AB Tax Aware Short Duration Municipal 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 | TAFI | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.05% | |
| AUM | $1.4B | $156.5B | |
| Dividend Yield | 2.98% | 2.60% | |
| Holdings | 624 | 8,747 | |
| YTD Return | +0.96% | +14.57% | |
| 1Y Return | +2.52% | +27.82% | |
| 3Y Return (annualized) | +3.52% | +19.27% | |
| 5Y Return (annualized) | - | +9.28% | |
| Volatility (annualized) | 2.3% | 15.1% | |
| Max Drawdown | -1.9% | -39.9% | |
| Fund Family | AllianceBernstein L.P. | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 13, 2022 | Jan 26, 2011 |
TAFI vs VXUS Performance
AB Tax Aware Short Duration Municipal ETF (TAFI) is a ETF from AllianceBernstein L.P. and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year TAFI returned +2.52% while VXUS returned +27.82%. Year to date, TAFI is up 0.96% versus a gain of 14.57% for VXUS.
Over three years, TAFI compounded at +3.52% per year against +19.27% for VXUS. Across the full 4-year window we track, VXUS has the edge at +4.86% annualized vs +3.27%. 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 2.3% for TAFI. 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 -1.9% for TAFI 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
TAFI charges 0.27% per year while VXUS charges 0.05%. On a $10,000 position that is $27 vs $5 annually, a gap of $22 per year that compounds over a long holding period. On income, TAFI currently yields 2.98% against 2.60% for VXUS.
Holdings Overlap
TAFI and VXUS share 0 holdings out of 8040 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, TAFI or VXUS?
TAFI has an expense ratio of 0.27% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, TAFI or VXUS?
Over the past year TAFI returned +2.52% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (4 years), TAFI annualized +3.27% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, TAFI or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 2.3% for TAFI. Worst drawdown: TAFI -1.9% vs VXUS -39.9%.
Should I hold both TAFI and VXUS?
TAFI and VXUS have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TAFI and VXUS?
TAFI and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8040 unique securities.
Which pays a higher dividend, TAFI or VXUS?
TAFI yields 2.98% while VXUS yields 2.60%, so TAFI currently pays the higher dividend yield.
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