VSDM vs VXUS
VSDM vs VXUS
Vanguard Short Duration Tax-Exempt Bond 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 | VSDM | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.12% | 0.05% | |
| AUM | $763M | $156.5B | |
| Dividend Yield | 3.10% | 2.60% | |
| Holdings | 3,774 | 8,747 | |
| YTD Return | -0.38% | +14.57% | |
| 1Y Return | +1.51% | +27.82% | |
| 3Y Return (annualized) | - | +19.27% | |
| 5Y Return (annualized) | - | +9.28% | |
| Volatility (annualized) | 2.1% | 15.1% | |
| Max Drawdown | -2.0% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 19, 2024 | Jan 26, 2011 |
VSDM vs VXUS Performance
Vanguard Short Duration Tax-Exempt Bond ETF (VSDM) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VSDM returned +1.51% while VXUS returned +27.82%. Year to date, VSDM is down 0.38% versus a gain of 14.57% for VXUS.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 2.1% for VSDM. 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 -2.0% for VSDM 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VSDM charges 0.12% per year while VXUS charges 0.05%. On a $10,000 position that is $12 vs $5 annually, a gap of $7 per year that compounds over a long holding period. On income, VSDM currently yields 3.10% against 2.60% for VXUS.
Holdings Overlap
VSDM and VXUS share 0 holdings out of 8285 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, VSDM or VXUS?
VSDM has an expense ratio of 0.12% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $7 per year of difference.
Which performed better, VSDM or VXUS?
Over the past year VSDM returned +1.51% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (2 years), VSDM annualized +3.40% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, VSDM or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 2.1% for VSDM. Worst drawdown: VSDM -2.0% vs VXUS -39.9%.
Should I hold both VSDM and VXUS?
VSDM and VXUS have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VSDM and VXUS?
VSDM and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8285 unique securities.
Which pays a higher dividend, VSDM or VXUS?
VSDM yields 3.10% while VXUS yields 2.60%, so VSDM currently pays the higher dividend yield.
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