VGM vs VXUS
Invesco Trust for Investment Grade Municipals 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 | VGM | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 3.13% | 0.05% | |
| AUM | $3,008.32 | $156.5B | |
| Dividend Yield | 7.40% | 2.60% | |
| Holdings | 534 | 8,747 | |
| YTD Return | +4.25% | +14.57% | |
| 1Y Return | +16.84% | +27.82% | |
| 3Y Return (annualized) | +10.39% | +19.27% | |
| 5Y Return (annualized) | +0.11% | +9.28% | |
| Volatility (annualized) | 12.3% | 15.1% | |
| Max Drawdown | -58.5% | -39.9% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 24, 1992 | Jan 26, 2011 |
VGM vs VXUS Performance
Invesco Trust for Investment Grade Municipals (VGM) is a ETF from Invesco (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VGM returned +16.84% while VXUS returned +27.82%. Year to date, VGM is up 4.25% versus a gain of 14.57% for VXUS.
Over three years, VGM compounded at +10.39% per year against +19.27% for VXUS; over five years the annualized figures are +0.11% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs -0.29%. 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 12.3% for VGM. 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 -58.5% for VGM 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGM charges 3.13% per year while VXUS charges 0.05%. On a $10,000 position that is $313 vs $5 annually, a gap of $308 per year that compounds over a long holding period. On income, VGM currently yields 7.40% against 2.60% for VXUS.
Holdings Overlap
VGM and VXUS share 0 holdings out of 8131 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, VGM or VXUS?
VGM has an expense ratio of 3.13% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $308 per year of difference.
Which performed better, VGM or VXUS?
Over the past year VGM returned +16.84% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VGM annualized -0.29% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, VGM or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 12.3% for VGM. Worst drawdown: VGM -58.5% vs VXUS -39.9%.
Should I hold both VGM and VXUS?
VGM and VXUS have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGM and VXUS?
VGM and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8131 unique securities.
Which pays a higher dividend, VGM or VXUS?
VGM yields 7.40% while VXUS yields 2.60%, so VGM currently pays the higher dividend yield.
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