TAFM vs VXUS
AB Tax-Aware Intermediate 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 | TAFM | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.05% | |
| AUM | $700M | $156.5B | |
| Dividend Yield | 2.79% | 2.60% | |
| Holdings | 560 | 8,747 | |
| YTD Return | +1.04% | +14.57% | |
| 1Y Return | +5.50% | +27.82% | |
| 3Y Return (annualized) | - | +19.27% | |
| 5Y Return (annualized) | - | +9.28% | |
| Volatility (annualized) | 4.0% | 15.1% | |
| Max Drawdown | -4.7% | -39.9% | |
| Fund Family | AllianceBernstein L.P. | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Dec 13, 2023 | Jan 26, 2011 |
TAFM vs VXUS Performance
AB Tax-Aware Intermediate Municipal ETF (TAFM) is a ETF from AllianceBernstein L.P. and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year TAFM returned +5.50% while VXUS returned +27.82%. Year to date, TAFM is up 1.04% versus a gain of 14.57% for VXUS.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 4.0% for TAFM. 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 -4.7% for TAFM 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TAFM charges 0.28% per year while VXUS charges 0.05%. On a $10,000 position that is $28 vs $5 annually, a gap of $23 per year that compounds over a long holding period. On income, TAFM currently yields 2.79% against 2.60% for VXUS.
Holdings Overlap
TAFM and VXUS share 0 holdings out of 8082 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, TAFM or VXUS?
TAFM has an expense ratio of 0.28% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $23 per year of difference.
Which performed better, TAFM or VXUS?
Over the past year TAFM returned +5.50% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (3 years), TAFM annualized +3.57% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, TAFM or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 4.0% for TAFM. Worst drawdown: TAFM -4.7% vs VXUS -39.9%.
Should I hold both TAFM and VXUS?
TAFM and VXUS have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TAFM and VXUS?
TAFM and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8082 unique securities.
Which pays a higher dividend, TAFM or VXUS?
TAFM yields 2.79% while VXUS yields 2.60%, so TAFM currently pays the higher dividend yield.
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