VSS vs VXUS
Vanguard FTSE All-World ex-US Small-Cap 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 8,747 holdings.
Side-by-Side Comparison
| Metric | VSS | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.05% | |
| AUM | $11.3B | $158.1B | |
| Dividend Yield | 3.31% | 2.59% | |
| Holdings | 4,828 | 8,747 | |
| YTD Return | +11.11% | +15.22% | |
| 1Y Return | +20.03% | +26.86% | |
| 3Y Return (annualized) | +17.15% | +20.34% | |
| 5Y Return (annualized) | +6.23% | +9.38% | |
| Volatility (annualized) | 17.3% | 15.1% | |
| Max Drawdown | -46.8% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 2, 2009 | Jan 26, 2011 |
VSS vs VXUS Performance
Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VSS returned +20.03% while VXUS returned +26.86%. Year to date, VSS is up 11.11% versus a gain of 15.22% for VXUS.
Over three years, VSS compounded at +17.15% per year against +20.34% for VXUS; over five years the annualized figures are +6.23% and +9.38% respectively. Across the full 16-year window we track, VSS has the edge at +7.58% annualized vs +4.89%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VSS has been the more volatile fund, with annualized monthly volatility of 17.3% 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 -46.8% for VSS 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 0.97. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VSS charges 0.06% per year while VXUS charges 0.05%. On a $10,000 position that is $6 vs $5 annually, a gap of $1 per year that compounds over a long holding period. On income, VSS currently yields 3.31% against 2.59% for VXUS.
Holdings Overlap
VSS and VXUS share 4042 holdings out of 8480 unique holdings combined, representing a 4.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VSS or VXUS?
VSS has an expense ratio of 0.06% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VSS or VXUS?
Over the past year VSS returned +20.03% vs +26.86% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VSS annualized +7.58% vs +4.89% for VXUS. Past performance does not guarantee future results.
Which is riskier, VSS or VXUS?
VSS has been the more volatile fund at 17.3% annualized versus 15.1% for VXUS. Worst drawdown: VSS -46.8% vs VXUS -39.9%.
Should I hold both VSS and VXUS?
VSS and VXUS have a monthly-return correlation of 0.97, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VSS and VXUS?
VSS and VXUS share 4042 common holdings with a 4.3% weight overlap. Combined, they hold 8480 unique securities.
Which pays a higher dividend, VSS or VXUS?
VSS yields 3.31% while VXUS yields 2.59%, so VSS currently pays the higher dividend yield.
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