TDTF vs VXUS
TDTF vs VXUS
FlexShares iBoxx 5 Year Target Duration TIPS Index Fund 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 | TDTF | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.05% | |
| AUM | $1.0B | $156.5B | |
| Dividend Yield | 4.73% | 2.60% | |
| Holdings | 18 | 8,747 | |
| YTD Return | +0.46% | +14.57% | |
| 1Y Return | +1.37% | +27.82% | |
| 3Y Return (annualized) | +4.13% | +19.27% | |
| 5Y Return (annualized) | +1.09% | +9.28% | |
| Volatility (annualized) | 4.3% | 15.1% | |
| Max Drawdown | -12.0% | -39.9% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 19, 2011 | Jan 26, 2011 |
TDTF vs VXUS Performance
FlexShares iBoxx 5 Year Target Duration TIPS Index Fund (TDTF) is a ETF from Flexshares Trust and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year TDTF returned +1.37% while VXUS returned +27.82%. Year to date, TDTF is up 0.46% versus a gain of 14.57% for VXUS.
Over three years, TDTF compounded at +4.13% per year against +19.27% for VXUS; over five years the annualized figures are +1.09% and +9.28% respectively. Across the full 15-year window we track, VXUS has the edge at +4.86% annualized vs +1.30%. 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 4.3% for TDTF. 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 -12.0% for TDTF 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TDTF charges 0.18% per year while VXUS charges 0.05%. On a $10,000 position that is $18 vs $5 annually, a gap of $13 per year that compounds over a long holding period. On income, TDTF currently yields 4.73% against 2.60% for VXUS.
Holdings Overlap
TDTF and VXUS share 0 holdings out of 7875 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, TDTF or VXUS?
TDTF has an expense ratio of 0.18% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, TDTF or VXUS?
Over the past year TDTF returned +1.37% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (15 years), TDTF annualized +1.30% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, TDTF or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 4.3% for TDTF. Worst drawdown: TDTF -12.0% vs VXUS -39.9%.
Should I hold both TDTF and VXUS?
TDTF and VXUS have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TDTF and VXUS?
TDTF and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7875 unique securities.
Which pays a higher dividend, TDTF or VXUS?
TDTF yields 4.73% while VXUS yields 2.60%, so TDTF currently pays the higher dividend yield.
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