VMO vs VXUS
VMO vs VXUS
Invesco Municipal Opportunity 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 | VMO | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 1.86% | 0.05% | |
| AUM | $2,934.54 | $156.5B | |
| Dividend Yield | 7.43% | 2.60% | |
| Holdings | 544 | 8,747 | |
| YTD Return | +7.19% | +14.57% | |
| 1Y Return | +15.33% | +27.82% | |
| 3Y Return (annualized) | +9.09% | +19.27% | |
| 5Y Return (annualized) | -0.53% | +9.28% | |
| Volatility (annualized) | 12.2% | 15.1% | |
| Max Drawdown | -60.0% | -39.9% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Apr 24, 1992 | Jan 26, 2011 |
VMO vs VXUS Performance
Invesco Municipal Opportunity Trust (VMO) is a ETF from Invesco (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VMO returned +15.33% while VXUS returned +27.82%. Year to date, VMO is up 7.19% versus a gain of 14.57% for VXUS.
Over three years, VMO compounded at +9.09% per year against +19.27% for VXUS; over five years the annualized figures are -0.53% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs -0.05%. 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 12.2% for VMO. 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 -60.0% for VMO 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VMO charges 1.86% per year while VXUS charges 0.05%. On a $10,000 position that is $186 vs $5 annually, a gap of $181 per year that compounds over a long holding period. On income, VMO currently yields 7.43% against 2.60% for VXUS.
Holdings Overlap
VMO and VXUS share 0 holdings out of 8134 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, VMO or VXUS?
VMO has an expense ratio of 1.86% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $181 per year of difference.
Which performed better, VMO or VXUS?
Over the past year VMO returned +15.33% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VMO annualized -0.05% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, VMO or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 12.2% for VMO. Worst drawdown: VMO -60.0% vs VXUS -39.9%.
Should I hold both VMO and VXUS?
VMO and VXUS have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VMO and VXUS?
VMO and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8134 unique securities.
Which pays a higher dividend, VMO or VXUS?
VMO yields 7.43% while VXUS yields 2.60%, so VMO currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.