VTEB vs VXUS
VTEB vs VXUS
Vanguard Tax-Exempt Bond ETF vs Vanguard Total International Stock ETF
Quick Verdict
VTEB has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | VTEB | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $46.0B | $156.5B | |
| Dividend Yield | 3.34% | 2.60% | |
| Holdings | 9,952 | 8,747 | |
| YTD Return | +0.57% | +14.57% | |
| 1Y Return | +5.15% | +27.82% | |
| 3Y Return (annualized) | +3.20% | +19.27% | |
| 5Y Return (annualized) | +0.58% | +9.28% | |
| Volatility (annualized) | 4.9% | 15.1% | |
| Max Drawdown | -17.0% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Aug 21, 2015 | Jan 26, 2011 |
VTEB vs VXUS Performance
Vanguard Tax-Exempt Bond ETF (VTEB) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VTEB returned +5.15% while VXUS returned +27.82%. Year to date, VTEB is up 0.57% versus a gain of 14.57% for VXUS.
Over three years, VTEB compounded at +3.20% per year against +19.27% for VXUS; over five years the annualized figures are +0.58% and +9.28% respectively. Across the full 11-year window we track, VXUS has the edge at +4.86% annualized vs +1.27%. 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 4.9% for VTEB. 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 -17.0% for VTEB 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTEB charges 0.03% per year while VXUS charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, VTEB currently yields 3.34% against 2.60% for VXUS.
Holdings Overlap
VTEB and VXUS share 0 holdings out of 11394 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, VTEB or VXUS?
VTEB has an expense ratio of 0.03% while VXUS charges 0.05%. VTEB is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VTEB or VXUS?
Over the past year VTEB returned +5.15% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (11 years), VTEB annualized +1.27% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, VTEB or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 4.9% for VTEB. Worst drawdown: VTEB -17.0% vs VXUS -39.9%.
Should I hold both VTEB and VXUS?
VTEB and VXUS have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTEB and VXUS?
VTEB and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 11394 unique securities.
Which pays a higher dividend, VTEB or VXUS?
VTEB yields 3.34% while VXUS yields 2.60%, so VTEB currently pays the higher dividend yield.
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