VXUS vs XHB

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricVXUSXHBWinner
Expense Ratio0.05%0.35%
AUM$158.1B$1.5B
Dividend Yield2.59%0.55%
Holdings8,74736
YTD Return+15.22%+4.66%
1Y Return+26.86%-3.43%
3Y Return (annualized)+20.34%+10.05%
5Y Return (annualized)+9.38%+7.78%
Volatility (annualized)15.1%28.1%
Max Drawdown-39.9%-82.3%
Fund FamilyVanguard (US)State Street Investment Management
CategoryEquityEquity
InceptionJan 26, 2011Jan 31, 2006

VXUS vs XHB Performance

Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and State Street SPDR S&P Homebuilders ETF (XHB) is a ETF from State Street Investment Management. Over the past year VXUS returned +26.86% while XHB returned -3.43%. Year to date, VXUS is up 15.22% versus a gain of 4.66% for XHB.

Over three years, VXUS compounded at +20.34% per year against +10.05% for XHB; over five years the annualized figures are +9.38% and +7.78% respectively. Across the full 16-year window we track, VXUS has the edge at +4.89% annualized vs +4.62%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

XHB has been the more volatile fund, with annualized monthly volatility of 28.1% 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 -82.3% for XHB. 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VXUS charges 0.05% per year while XHB 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 2.59% against 0.55% for XHB.

Holdings Overlap

0.0%overlap

VXUS and XHB share 0 holdings out of 7903 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 XHB?

VXUS has an expense ratio of 0.05% while XHB 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 XHB?

Over the past year VXUS returned +26.86% vs -3.43% for XHB, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VXUS annualized +4.89% vs +4.62% for XHB. Past performance does not guarantee future results.

Which is riskier, VXUS or XHB?

XHB has been the more volatile fund at 28.1% annualized versus 15.1% for VXUS. Worst drawdown: VXUS -39.9% vs XHB -82.3%.

Should I hold both VXUS and XHB?

VXUS and XHB have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VXUS and XHB?

VXUS and XHB share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7903 unique securities.

Which pays a higher dividend, VXUS or XHB?

VXUS yields 2.59% while XHB yields 0.55%, so VXUS currently pays the higher dividend yield.

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