UTWO vs VXUS
F/m US Treasury 2 Year Note 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 | UTWO | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.05% | |
| AUM | $482M | $156.5B | |
| Dividend Yield | 3.82% | 2.60% | |
| Holdings | 2 | 8,747 | |
| YTD Return | +0.79% | +14.57% | |
| 1Y Return | +2.59% | +27.82% | |
| 3Y Return (annualized) | +3.92% | +19.27% | |
| 5Y Return (annualized) | - | +9.28% | |
| Volatility (annualized) | 1.9% | 15.1% | |
| Max Drawdown | -2.0% | -39.9% | |
| Fund Family | US Benchmark Series | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Aug 8, 2022 | Jan 26, 2011 |
UTWO vs VXUS Performance
F/m US Treasury 2 Year Note ETF (UTWO) is a ETF from US Benchmark Series and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year UTWO returned +2.59% while VXUS returned +27.82%. Year to date, UTWO is up 0.79% versus a gain of 14.57% for VXUS.
Over three years, UTWO compounded at +3.92% per year against +19.27% for VXUS. Across the full 4-year window we track, VXUS has the edge at +4.86% annualized vs +2.97%. 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 1.9% for UTWO. 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 -2.0% for UTWO 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
UTWO 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, UTWO currently yields 3.82% against 2.60% for VXUS.
Holdings Overlap
UTWO and VXUS share 0 holdings out of 7862 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, UTWO or VXUS?
UTWO 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, UTWO or VXUS?
Over the past year UTWO returned +2.59% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (4 years), UTWO annualized +2.97% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, UTWO or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 1.9% for UTWO. Worst drawdown: UTWO -2.0% vs VXUS -39.9%.
Should I hold both UTWO and VXUS?
UTWO 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 UTWO and VXUS?
UTWO and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7862 unique securities.
Which pays a higher dividend, UTWO or VXUS?
UTWO yields 3.82% while VXUS yields 2.60%, so UTWO currently pays the higher dividend yield.
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