Quick Verdict

VTG has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VTGHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricVTGVXUSWinner
Expense Ratio0.03%0.05%
AUM$147M$156.5B
Dividend Yield3.18%2.60%
Holdings2858,747
YTD Return-0.56%+14.57%
1Y Return+1.28%+27.82%
3Y Return (annualized)-+19.27%
5Y Return (annualized)-+9.28%
Volatility (annualized)3.2%15.1%
Max Drawdown-2.9%-39.9%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionJul 7, 2025Jan 26, 2011

VTG vs VXUS Performance

Vanguard Total Treasury ETF (VTG) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VTG returned +1.28% while VXUS returned +27.82%. Year to date, VTG is down 0.56% 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 3.2% for VTG. 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 -2.9% for VTG 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VTG 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, VTG currently yields 3.18% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

VTG and VXUS share 0 holdings out of 8105 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, VTG or VXUS?

VTG has an expense ratio of 0.03% while VXUS charges 0.05%. VTG is the cheaper option. On a $10,000 investment, that is $2 per year of difference.

Which performed better, VTG or VXUS?

Over the past year VTG returned +1.28% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (1 years), VTG annualized +2.07% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, VTG or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 3.2% for VTG. Worst drawdown: VTG -2.9% vs VXUS -39.9%.

Should I hold both VTG and VXUS?

VTG and VXUS have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VTG and VXUS?

VTG and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8105 unique securities.

Which pays a higher dividend, VTG or VXUS?

VTG yields 3.18% while VXUS yields 2.60%, so VTG currently pays the higher dividend yield.

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