TSME vs VXUS
Thrivent Small-Mid Cap Equity 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 | TSME | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.65% | 0.05% | |
| AUM | $966M | $156.5B | |
| Dividend Yield | 0.14% | 2.60% | |
| Holdings | 67 | 8,747 | |
| YTD Return | +19.96% | +15.00% | |
| 1Y Return | +23.87% | +26.87% | |
| 3Y Return (annualized) | +20.15% | +19.79% | |
| 5Y Return (annualized) | - | +9.26% | |
| Volatility (annualized) | 21.5% | 15.1% | |
| Max Drawdown | -26.6% | -39.9% | |
| Fund Family | Thrivent Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Oct 5, 2022 | Jan 26, 2011 |
TSME vs VXUS Performance
Thrivent Small-Mid Cap Equity ETF (TSME) is a ETF from Thrivent Funds and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year TSME returned +23.87% while VXUS returned +26.87%. Year to date, TSME is up 19.96% versus a gain of 15.00% for VXUS.
Over three years, TSME compounded at +20.15% per year against +19.79% for VXUS. Across the full 4-year window we track, TSME has the edge at +19.64% annualized vs +4.88%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
TSME has been the more volatile fund, with annualized monthly volatility of 21.5% compared with 15.1% for VXUS. 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 -26.6% for TSME 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TSME charges 0.65% per year while VXUS charges 0.05%. On a $10,000 position that is $65 vs $5 annually, a gap of $60 per year that compounds over a long holding period. On income, TSME currently yields 0.14% against 2.60% for VXUS.
Holdings Overlap
TSME and VXUS share 2 holdings out of 7925 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, TSME or VXUS?
TSME has an expense ratio of 0.65% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $60 per year of difference.
Which performed better, TSME or VXUS?
Over the past year TSME returned +23.87% vs +26.87% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (4 years), TSME annualized +19.64% vs +4.88% for VXUS. Past performance does not guarantee future results.
Which is riskier, TSME or VXUS?
TSME has been the more volatile fund at 21.5% annualized versus 15.1% for VXUS. Worst drawdown: TSME -26.6% vs VXUS -39.9%.
Should I hold both TSME and VXUS?
TSME and VXUS have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TSME and VXUS?
TSME and VXUS share 2 common holdings with a 0.1% weight overlap. Combined, they hold 7925 unique securities.
Which pays a higher dividend, TSME or VXUS?
TSME yields 0.14% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.
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