TLT vs VXUS
iShares 20+ Year Treasury Bond 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 8,747 holdings.
Side-by-Side Comparison
| Metric | TLT | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.05% | |
| AUM | $47.0B | $158.1B | |
| Dividend Yield | 4.72% | 2.59% | |
| Holdings | 48 | 8,747 | |
| YTD Return | -2.94% | +14.51% | |
| 1Y Return | +0.09% | +26.56% | |
| 3Y Return (annualized) | +0.20% | +19.95% | |
| 5Y Return (annualized) | -7.95% | +8.87% | |
| Volatility (annualized) | 13.3% | 15.0% | |
| Max Drawdown | -48.7% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 22, 2002 | Jan 26, 2011 |
TLT vs VXUS Performance
iShares 20+ Year Treasury Bond ETF (TLT) 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 TLT returned +0.09% while VXUS returned +26.56%. Year to date, TLT is down 2.94% versus a gain of 14.51% for VXUS.
Over three years, TLT compounded at +0.20% per year against +19.95% for VXUS; over five years the annualized figures are -7.95% and +8.87% respectively. Across the full 16-year window we track, VXUS has the edge at +4.83% annualized vs +0.80%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 13.3% for TLT. 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 -48.7% for TLT 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 -0.02. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TLT 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, TLT currently yields 4.72% against 2.59% for VXUS.
Holdings Overlap
TLT and VXUS share 0 holdings out of 8138 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, TLT or VXUS?
TLT 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, TLT or VXUS?
Over the past year TLT returned +0.09% vs +26.56% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), TLT annualized +0.80% vs +4.83% for VXUS. Past performance does not guarantee future results.
Which is riskier, TLT or VXUS?
VXUS has been the more volatile fund at 15.0% annualized versus 13.3% for TLT. Worst drawdown: TLT -48.7% vs VXUS -39.9%.
Should I hold both TLT and VXUS?
TLT and VXUS have a monthly-return correlation of -0.02, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TLT and VXUS?
TLT and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8138 unique securities.
Which pays a higher dividend, TLT or VXUS?
TLT yields 4.72% while VXUS yields 2.59%, so TLT currently pays the higher dividend yield.
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