VXUS vs XAR
VXUS vs XAR
Vanguard Total International Stock ETF vs State Street SPDR S&P Aerospace & Defense ETF
Quick Verdict
VXUS has a lower expense ratio. XAR delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | VXUS | XAR | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.35% | |
| AUM | $156.5B | $6.1B | |
| Dividend Yield | 2.60% | 0.28% | |
| Holdings | 8,747 | 49 | |
| YTD Return | +14.57% | +14.62% | |
| 1Y Return | +27.82% | +33.67% | |
| 3Y Return (annualized) | +19.27% | +33.45% | |
| 5Y Return (annualized) | +9.28% | +18.59% | |
| Volatility (annualized) | 15.1% | 20.4% | |
| Max Drawdown | -39.9% | -46.7% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2011 | Sep 28, 2011 |
VXUS vs XAR Performance
Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and State Street SPDR S&P Aerospace & Defense ETF (XAR) is a ETF from State Street Investment Management. Over the past year VXUS returned +27.82% while XAR returned +33.67%. Year to date, VXUS is up 14.57% versus a gain of 14.62% for XAR.
Over three years, VXUS compounded at +19.27% per year against +33.45% for XAR; over five years the annualized figures are +9.28% and +18.59% respectively. Across the full 15-year window we track, XAR has the edge at +18.02% annualized vs +4.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XAR has been the more volatile fund, with annualized monthly volatility of 20.4% 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 -46.7% for XAR. 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
VXUS charges 0.05% per year while XAR charges 0.35%. On a $10,000 position that is $5 vs $35 annually, a gap of $30 per year that compounds over a long holding period. On income, VXUS currently yields 2.60% against 0.28% for XAR.
Holdings Overlap
VXUS and XAR share 0 holdings out of 7909 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, VXUS or XAR?
VXUS has an expense ratio of 0.05% while XAR charges 0.35%. VXUS is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, VXUS or XAR?
Over the past year VXUS returned +27.82% vs +33.67% for XAR, so XAR leads on 1-year performance. Over the longest common window we track (15 years), VXUS annualized +4.86% vs +18.02% for XAR. Past performance does not guarantee future results.
Which is riskier, VXUS or XAR?
XAR has been the more volatile fund at 20.4% annualized versus 15.1% for VXUS. Worst drawdown: VXUS -39.9% vs XAR -46.7%.
Should I hold both VXUS and XAR?
VXUS and XAR 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 VXUS and XAR?
VXUS and XAR share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7909 unique securities.
Which pays a higher dividend, VXUS or XAR?
VXUS yields 2.60% while XAR yields 0.28%, so VXUS currently pays the higher dividend yield.
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