VXUS vs XHS

Quick Verdict

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

Lower Fees: VXUSHigher Returns: XHSMore Diversified: VXUS

Side-by-Side Comparison

MetricVXUSXHSWinner
Expense Ratio0.05%0.35%
AUM$156.5B$207M
Dividend Yield2.60%0.20%
Holdings8,74759
YTD Return+14.57%+26.22%
1Y Return+27.82%+52.79%
3Y Return (annualized)+19.27%+13.64%
5Y Return (annualized)+9.28%+4.42%
Volatility (annualized)15.1%19.5%
Max Drawdown-39.9%-39.4%
Fund FamilyVanguard (US)State Street Investment Management
CategoryEquityEquity
InceptionJan 26, 2011Sep 28, 2011

VXUS vs XHS Performance

Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and State Street SPDR S&P Health Care Services ETF (XHS) is a ETF from State Street Investment Management. Over the past year VXUS returned +27.82% while XHS returned +52.79%. Year to date, VXUS is up 14.57% versus a gain of 26.22% for XHS.

Over three years, VXUS compounded at +19.27% per year against +13.64% for XHS; over five years the annualized figures are +9.28% and +4.42% respectively. Across the full 15-year window we track, XHS has the edge at +12.21% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

XHS has been the more volatile fund, with annualized monthly volatility of 19.5% 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 -39.4% for XHS. 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VXUS charges 0.05% per year while XHS 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 0.20% for XHS.

Holdings Overlap

0.0%overlap

VXUS and XHS share 0 holdings out of 7922 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 XHS?

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

Over the past year VXUS returned +27.82% vs +52.79% for XHS, so XHS leads on 1-year performance. Over the longest common window we track (15 years), VXUS annualized +4.86% vs +12.21% for XHS. Past performance does not guarantee future results.

Which is riskier, VXUS or XHS?

XHS has been the more volatile fund at 19.5% annualized versus 15.1% for VXUS. Worst drawdown: VXUS -39.9% vs XHS -39.4%.

Should I hold both VXUS and XHS?

VXUS and XHS have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VXUS and XHS?

VXUS and XHS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7922 unique securities.

Which pays a higher dividend, VXUS or XHS?

VXUS yields 2.60% while XHS yields 0.20%, so VXUS currently pays the higher dividend yield.

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