Quick Verdict

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

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricVXUSWBNDWinner
Expense Ratio0.05%0.65%
AUM$156.5B$10M
Dividend Yield2.60%4.06%
Holdings8,747512
YTD Return+14.57%+4.40%
1Y Return+27.82%+1.11%
3Y Return (annualized)+19.27%+1.75%
5Y Return (annualized)+9.28%-2.98%
Volatility (annualized)15.1%142.2%
Max Drawdown-39.9%-81.5%
Fund FamilyVanguard (US)Franklin Templeton Investments (US)
CategoryEquityFixed Income
InceptionJan 26, 2011Oct 3, 2018

VXUS vs WBND Performance

Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and Western Asset Total Return ETF (WBND) is a ETF from Franklin Templeton Investments (US). Over the past year VXUS returned +27.82% while WBND returned +1.11%. Year to date, VXUS is up 14.57% versus a gain of 4.40% for WBND.

Over three years, VXUS compounded at +19.27% per year against +1.75% for WBND; over five years the annualized figures are +9.28% and -2.98% respectively. Across the full 7-year window we track, VXUS has the edge at +4.86% annualized vs +0.85%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

WBND has been the more volatile fund, with annualized monthly volatility of 142.2% 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 -39.9% for VXUS and -81.5% for WBND. 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 0.04. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VXUS charges 0.05% per year while WBND charges 0.65%. On a $10,000 position that is $5 vs $65 annually, a gap of $60 per year that compounds over a long holding period. On income, VXUS currently yields 2.60% against 4.06% for WBND.

Frequently Asked Questions

Which is cheaper, VXUS or WBND?

VXUS has an expense ratio of 0.05% while WBND charges 0.65%. VXUS is the cheaper option. On a $10,000 investment, that is $60 per year of difference.

Which performed better, VXUS or WBND?

Over the past year VXUS returned +27.82% vs +1.11% for WBND, so VXUS leads on 1-year performance. Over the longest common window we track (7 years), VXUS annualized +4.86% vs +0.85% for WBND. Past performance does not guarantee future results.

Which is riskier, VXUS or WBND?

WBND has been the more volatile fund at 142.2% annualized versus 15.1% for VXUS. Worst drawdown: VXUS -39.9% vs WBND -81.5%.

Should I hold both VXUS and WBND?

VXUS and WBND have a monthly-return correlation of 0.04, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, VXUS or WBND?

VXUS yields 2.60% while WBND yields 4.06%, so WBND currently pays the higher dividend yield.

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