VABS vs VXUS
VABS vs VXUS
Virtus Newfleet ABS/MBS 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 | VABS | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.05% | |
| AUM | $112M | $156.5B | |
| Dividend Yield | 5.18% | 2.60% | |
| Holdings | 131 | 8,747 | |
| YTD Return | +2.37% | +14.57% | |
| 1Y Return | +3.56% | +27.82% | |
| 3Y Return (annualized) | +6.13% | +19.27% | |
| 5Y Return (annualized) | +3.36% | +9.28% | |
| Volatility (annualized) | 2.1% | 15.1% | |
| Max Drawdown | -7.1% | -39.9% | |
| Fund Family | Virtus Investment Partners | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 9, 2021 | Jan 26, 2011 |
VABS vs VXUS Performance
Virtus Newfleet ABS/MBS ETF (VABS) is a ETF from Virtus Investment Partners and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VABS returned +3.56% while VXUS returned +27.82%. Year to date, VABS is up 2.37% versus a gain of 14.57% for VXUS.
Over three years, VABS compounded at +6.13% per year against +19.27% for VXUS; over five years the annualized figures are +3.36% and +9.28% respectively. Across the full 6-year window we track, VXUS has the edge at +4.86% annualized vs +3.21%. 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 2.1% for VABS. 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 -7.1% for VABS 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 0.55. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VABS charges 0.39% per year while VXUS charges 0.05%. On a $10,000 position that is $39 vs $5 annually, a gap of $34 per year that compounds over a long holding period. On income, VABS currently yields 5.18% against 2.60% for VXUS.
Frequently Asked Questions
Which is cheaper, VABS or VXUS?
VABS has an expense ratio of 0.39% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, VABS or VXUS?
Over the past year VABS returned +3.56% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (6 years), VABS annualized +3.21% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, VABS or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 2.1% for VABS. Worst drawdown: VABS -7.1% vs VXUS -39.9%.
Should I hold both VABS and VXUS?
VABS and VXUS have a monthly-return correlation of 0.55, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, VABS or VXUS?
VABS yields 5.18% while VXUS yields 2.60%, so VABS currently pays the higher dividend yield.
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