TDTT vs VXUS
FlexShares iBoxx 3 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 | TDTT | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.18% | 0.05% | |
| AUM | $2.5B | $156.5B | |
| Dividend Yield | 4.57% | 2.60% | |
| Holdings | 24 | 8,747 | |
| YTD Return | +0.74% | +14.57% | |
| 1Y Return | +1.70% | +27.82% | |
| 3Y Return (annualized) | +4.51% | +19.27% | |
| 5Y Return (annualized) | +2.47% | +9.28% | |
| Volatility (annualized) | 2.7% | 15.1% | |
| Max Drawdown | -8.3% | -39.9% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 19, 2011 | Jan 26, 2011 |
TDTT vs VXUS Performance
FlexShares iBoxx 3 Year Target Duration TIPS Index Fund (TDTT) is a ETF from Flexshares Trust and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year TDTT returned +1.70% while VXUS returned +27.82%. Year to date, TDTT is up 0.74% versus a gain of 14.57% for VXUS.
Over three years, TDTT compounded at +4.51% per year against +19.27% for VXUS; over five years the annualized figures are +2.47% and +9.28% respectively. Across the full 15-year window we track, VXUS has the edge at +4.86% annualized vs +1.38%. 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 2.7% for TDTT. 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 -8.3% for TDTT 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TDTT 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, TDTT currently yields 4.57% against 2.60% for VXUS.
Holdings Overlap
TDTT and VXUS share 0 holdings out of 7881 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, TDTT or VXUS?
TDTT 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, TDTT or VXUS?
Over the past year TDTT returned +1.70% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (15 years), TDTT annualized +1.38% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, TDTT or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 2.7% for TDTT. Worst drawdown: TDTT -8.3% vs VXUS -39.9%.
Should I hold both TDTT and VXUS?
TDTT and VXUS have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TDTT and VXUS?
TDTT and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7881 unique securities.
Which pays a higher dividend, TDTT or VXUS?
TDTT yields 4.57% while VXUS yields 2.60%, so TDTT currently pays the higher dividend yield.
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