VTEI vs VXUS
Vanguard Intermediate-Term 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 | VTEI | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.08% | 0.05% | |
| AUM | $1.5B | $156.5B | |
| Dividend Yield | 3.04% | 2.60% | |
| Holdings | 10,147 | 8,747 | |
| YTD Return | -1.26% | +14.19% | |
| 1Y Return | +2.32% | +27.38% | |
| 3Y Return (annualized) | - | +19.53% | |
| 5Y Return (annualized) | - | +9.03% | |
| Volatility (annualized) | 3.4% | 15.1% | |
| Max Drawdown | -3.6% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Jan 26, 2024 | Jan 26, 2011 |
VTEI vs VXUS Performance
Vanguard Intermediate-Term Tax-Exempt Bond ETF (VTEI) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VTEI returned +2.32% while VXUS returned +27.38%. Year to date, VTEI is down 1.26% versus a gain of 14.19% for VXUS.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 3.4% for VTEI. 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 -3.6% for VTEI 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 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTEI charges 0.08% per year while VXUS charges 0.05%. On a $10,000 position that is $8 vs $5 annually, a gap of $3 per year that compounds over a long holding period. On income, VTEI currently yields 3.04% against 2.60% for VXUS.
Holdings Overlap
VTEI and VXUS share 0 holdings out of 9629 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, VTEI or VXUS?
VTEI has an expense ratio of 0.08% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VTEI or VXUS?
Over the past year VTEI returned +2.32% vs +27.38% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (3 years), VTEI annualized +1.92% vs +4.83% for VXUS. Past performance does not guarantee future results.
Which is riskier, VTEI or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 3.4% for VTEI. Worst drawdown: VTEI -3.6% vs VXUS -39.9%.
Should I hold both VTEI and VXUS?
VTEI and VXUS have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTEI and VXUS?
VTEI and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 9629 unique securities.
Which pays a higher dividend, VTEI or VXUS?
VTEI yields 3.04% while VXUS yields 2.60%, so VTEI currently pays the higher dividend yield.
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