VNQ vs VXUS
VNQ vs VXUS
Vanguard Real Estate 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 | VNQ | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.13% | 0.05% | |
| AUM | $38.2B | $156.5B | |
| Dividend Yield | 3.52% | 2.60% | |
| Holdings | 144 | 8,747 | |
| YTD Return | +13.37% | +14.57% | |
| 1Y Return | +13.85% | +27.82% | |
| 3Y Return (annualized) | +9.90% | +19.27% | |
| 5Y Return (annualized) | +2.33% | +9.28% | |
| Volatility (annualized) | 21.4% | 15.1% | |
| Max Drawdown | -75.8% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 23, 2004 | Jan 26, 2011 |
VNQ vs VXUS Performance
Vanguard Real Estate ETF (VNQ) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VNQ returned +13.85% while VXUS returned +27.82%. Year to date, VNQ is up 13.37% versus a gain of 14.57% for VXUS.
Over three years, VNQ compounded at +9.90% per year against +19.27% for VXUS; over five years the annualized figures are +2.33% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs +4.13%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 21.4% compared with 15.1% for VXUS. 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 -75.8% for VNQ 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VNQ charges 0.13% per year while VXUS charges 0.05%. On a $10,000 position that is $13 vs $5 annually, a gap of $8 per year that compounds over a long holding period. On income, VNQ currently yields 3.52% against 2.60% for VXUS.
Holdings Overlap
Frequently Asked Questions
Which is cheaper, VNQ or VXUS?
VNQ has an expense ratio of 0.13% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, VNQ or VXUS?
Over the past year VNQ returned +13.85% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VNQ annualized +4.13% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, VNQ or VXUS?
VNQ has been the more volatile fund at 21.4% annualized versus 15.1% for VXUS. Worst drawdown: VNQ -75.8% vs VXUS -39.9%.
Should I hold both VNQ and VXUS?
VNQ and VXUS have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VNQ and VXUS?
VNQ and VXUS share 2 common holdings with a 0.1% weight overlap. Combined, they hold 8003 unique securities.
Which pays a higher dividend, VNQ or VXUS?
VNQ yields 3.52% while VXUS yields 2.60%, so VNQ currently pays the higher dividend yield.
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