VGLT vs VXUS

VGLT vs VXUS
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Quick Verdict

VGLT has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.

Lower Fees: VGLTHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricVGLTVXUSWinner
Expense Ratio0.03%0.05%
AUM$10.3B$158.1B
Dividend Yield4.74%2.59%
Holdings1028,747
YTD Return-1.21%+15.77%
1Y Return+1.14%+26.56%
3Y Return (annualized)+0.89%+20.47%
5Y Return (annualized)-6.56%+9.53%
Volatility (annualized)12.4%15.1%
Max Drawdown-47.1%-39.9%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionNov 19, 2009Jan 26, 2011

VGLT vs VXUS Performance

Vanguard Long Term Treasury ETF (VGLT) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VGLT returned +1.14% while VXUS returned +26.56%. Year to date, VGLT is down 1.21% versus a gain of 15.77% for VXUS.

Over three years, VGLT compounded at +0.89% per year against +20.47% for VXUS; over five years the annualized figures are -6.56% and +9.53% respectively. Across the full 16-year window we track, VXUS has the edge at +4.91% annualized vs +0.42%. 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 12.4% for VGLT. 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 -47.1% for VGLT 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 0.00. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VGLT charges 0.03% per year while VXUS charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, VGLT currently yields 4.74% against 2.59% for VXUS.

Holdings Overlap

0.0%overlap

VGLT and VXUS share 0 holdings out of 7901 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, VGLT or VXUS?

VGLT has an expense ratio of 0.03% while VXUS charges 0.05%. VGLT is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, VGLT or VXUS?

Over the past year VGLT returned +1.14% vs +26.56% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VGLT annualized +0.42% vs +4.91% for VXUS. Past performance does not guarantee future results.

Which is riskier, VGLT or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 12.4% for VGLT. Worst drawdown: VGLT -47.1% vs VXUS -39.9%.

Should I hold both VGLT and VXUS?

VGLT and VXUS have a monthly-return correlation of 0.00, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VGLT and VXUS?

VGLT and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7901 unique securities.

Which pays a higher dividend, VGLT or VXUS?

VGLT yields 4.74% while VXUS yields 2.59%, so VGLT currently pays the higher dividend yield.

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