VTES vs VXUS
VTES vs VXUS
Vanguard Short-Term Tax-Exempt Bond ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | VTES | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.05% | |
| AUM | $2.1B | $156.5B | |
| Dividend Yield | 2.74% | 2.60% | |
| Holdings | 3,067 | 8,747 | |
| YTD Return | +0.54% | +14.57% | |
| 1Y Return | +1.82% | +27.82% | |
| 3Y Return (annualized) | +3.02% | +19.27% | |
| 5Y Return (annualized) | - | +9.28% | |
| Volatility (annualized) | 2.3% | 15.1% | |
| Max Drawdown | -2.4% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Mar 7, 2023 | Jan 26, 2011 |
VTES vs VXUS Performance
Vanguard Short-Term Tax-Exempt Bond ETF (VTES) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VTES returned +1.82% while VXUS returned +27.82%. Year to date, VTES is up 0.54% versus a gain of 14.57% for VXUS.
Over three years, VTES compounded at +3.02% per year against +19.27% for VXUS. Across the full 3-year window we track, VXUS has the edge at +4.86% annualized vs +2.83%. 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 2.3% for VTES. 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 -2.4% for VTES 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTES charges 0.05% per year while VXUS charges 0.05%. On a $10,000 position that is $5 vs $5 annually. On income, VTES currently yields 2.74% against 2.60% for VXUS.
Holdings Overlap
VTES and VXUS share 0 holdings out of 8892 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, VTES or VXUS?
VTES has an expense ratio of 0.05% while VXUS charges 0.05%. They cost the same. On a $10,000 investment, that is $0 per year of difference.
Which performed better, VTES or VXUS?
Over the past year VTES returned +1.82% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (3 years), VTES annualized +2.83% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, VTES or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 2.3% for VTES. Worst drawdown: VTES -2.4% vs VXUS -39.9%.
Should I hold both VTES and VXUS?
VTES and VXUS have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTES and VXUS?
VTES and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8892 unique securities.
Which pays a higher dividend, VTES or VXUS?
VTES yields 2.74% while VXUS yields 2.60%, so VTES currently pays the higher dividend yield.
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