VXUS vs WDEF
Vanguard Total International Stock ETF vs WisdomTree Europe Defense Fund 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 | VXUS | WDEF | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.45% | |
| AUM | $156.5B | $95M | |
| Dividend Yield | 2.60% | 0.08% | |
| Holdings | 8,747 | 38 | |
| YTD Return | +14.19% | +8.31% | |
| 1Y Return | +27.38% | +15.66% | |
| 3Y Return (annualized) | +19.53% | - | |
| 5Y Return (annualized) | +9.03% | - | |
| Volatility (annualized) | 15.1% | 32.7% | |
| Max Drawdown | -39.9% | -23.9% | |
| Fund Family | Vanguard (US) | WisdomTree Investments | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2011 | Jul 17, 2025 |
VXUS vs WDEF Performance
Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and WisdomTree Europe Defense Fund ETF (WDEF) is a ETF from WisdomTree Investments. Over the past year VXUS returned +27.38% while WDEF returned +15.66%. Year to date, VXUS is up 14.19% versus a gain of 8.31% for WDEF.
Risk: Volatility and Drawdowns
WDEF has been the more volatile fund, with annualized monthly volatility of 32.7% 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 -23.9% for WDEF. 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VXUS charges 0.05% per year while WDEF charges 0.45%. On a $10,000 position that is $5 vs $45 annually, a gap of $40 per year that compounds over a long holding period. On income, VXUS currently yields 2.60% against 0.08% for WDEF.
Holdings Overlap
VXUS and WDEF share 24 holdings out of 7878 unique holdings combined, representing a 1.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VXUS or WDEF?
VXUS has an expense ratio of 0.05% while WDEF charges 0.45%. VXUS is the cheaper option. On a $10,000 investment, that is $40 per year of difference.
Which performed better, VXUS or WDEF?
Over the past year VXUS returned +27.38% vs +15.66% for WDEF, so VXUS leads on 1-year performance. Over the longest common window we track (1 years), VXUS annualized +4.83% vs +7.05% for WDEF. Past performance does not guarantee future results.
Which is riskier, VXUS or WDEF?
WDEF has been the more volatile fund at 32.7% annualized versus 15.1% for VXUS. Worst drawdown: VXUS -39.9% vs WDEF -23.9%.
Should I hold both VXUS and WDEF?
VXUS and WDEF have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VXUS and WDEF?
VXUS and WDEF share 24 common holdings with a 1.3% weight overlap. Combined, they hold 7878 unique securities.
Which pays a higher dividend, VXUS or WDEF?
VXUS yields 2.60% while WDEF yields 0.08%, so VXUS currently pays the higher dividend yield.
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