VXUS vs XHE
Vanguard Total International Stock ETF vs State Street SPDR S&P Health Care Equipment 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 | XHE | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.35% | |
| AUM | $156.5B | $155M | |
| Dividend Yield | 2.60% | 0.06% | |
| Holdings | 8,747 | 69 | |
| YTD Return | +15.24% | +8.93% | |
| 1Y Return | +26.32% | +17.53% | |
| 3Y Return (annualized) | +19.85% | +2.06% | |
| 5Y Return (annualized) | +9.23% | -5.00% | |
| Volatility (annualized) | 15.1% | 18.8% | |
| Max Drawdown | -39.9% | -49.9% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2011 | Jan 26, 2011 |
VXUS vs XHE Performance
Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and State Street SPDR S&P Health Care Equipment ETF (XHE) is a ETF from State Street Investment Management. Over the past year VXUS returned +26.32% while XHE returned +17.53%. Year to date, VXUS is up 15.24% versus a gain of 8.93% for XHE.
Over three years, VXUS compounded at +19.85% per year against +2.06% for XHE; over five years the annualized figures are +9.23% and -5.00% respectively. Across the full 16-year window we track, XHE has the edge at +9.87% annualized vs +4.89%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XHE has been the more volatile fund, with annualized monthly volatility of 18.8% 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 -49.9% for XHE. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VXUS charges 0.05% per year while XHE 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 0.06% for XHE.
Holdings Overlap
VXUS and XHE share 0 holdings out of 7930 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 XHE?
VXUS has an expense ratio of 0.05% while XHE 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 XHE?
Over the past year VXUS returned +26.32% vs +17.53% for XHE, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VXUS annualized +4.89% vs +9.87% for XHE. Past performance does not guarantee future results.
Which is riskier, VXUS or XHE?
XHE has been the more volatile fund at 18.8% annualized versus 15.1% for VXUS. Worst drawdown: VXUS -39.9% vs XHE -49.9%.
Should I hold both VXUS and XHE?
VXUS and XHE have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VXUS and XHE?
VXUS and XHE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7930 unique securities.
Which pays a higher dividend, VXUS or XHE?
VXUS yields 2.60% while XHE yields 0.06%, so VXUS currently pays the higher dividend yield.
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