VKQ vs VXUS
Invesco Municipal Trust 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 | VKQ | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 1.77% | 0.05% | |
| AUM | $2,913.25 | $156.5B | |
| Dividend Yield | 7.42% | 2.60% | |
| Holdings | 537 | 8,747 | |
| YTD Return | +6.20% | +14.19% | |
| 1Y Return | +15.34% | +27.38% | |
| 3Y Return (annualized) | +9.11% | +19.53% | |
| 5Y Return (annualized) | -0.65% | +9.03% | |
| Volatility (annualized) | 13.9% | 15.1% | |
| Max Drawdown | -58.5% | -39.9% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 27, 1991 | Jan 26, 2011 |
VKQ vs VXUS Performance
Invesco Municipal Trust (VKQ) is a ETF from Invesco (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VKQ returned +15.34% while VXUS returned +27.38%. Year to date, VKQ is up 6.20% versus a gain of 14.19% for VXUS.
Over three years, VKQ compounded at +9.11% per year against +19.53% for VXUS; over five years the annualized figures are -0.65% and +9.03% respectively. Across the full 16-year window we track, VXUS has the edge at +4.83% annualized vs -0.13%. 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 13.9% for VKQ. 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 VKQ 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VKQ charges 1.77% per year while VXUS charges 0.05%. On a $10,000 position that is $177 vs $5 annually, a gap of $172 per year that compounds over a long holding period. On income, VKQ currently yields 7.42% against 2.60% for VXUS.
Holdings Overlap
VKQ and VXUS share 0 holdings out of 8137 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, VKQ or VXUS?
VKQ has an expense ratio of 1.77% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $172 per year of difference.
Which performed better, VKQ or VXUS?
Over the past year VKQ returned +15.34% vs +27.38% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VKQ annualized -0.13% vs +4.83% for VXUS. Past performance does not guarantee future results.
Which is riskier, VKQ or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 13.9% for VKQ. Worst drawdown: VKQ -58.5% vs VXUS -39.9%.
Should I hold both VKQ and VXUS?
VKQ and VXUS have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VKQ and VXUS?
VKQ and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8137 unique securities.
Which pays a higher dividend, VKQ or VXUS?
VKQ yields 7.42% while VXUS yields 2.60%, so VKQ currently pays the higher dividend yield.
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