VXUS vs XLC
Vanguard Total International Stock ETF vs State Street Communication Services Select Sector SPDR ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.
Side-by-Side Comparison
| Metric | VXUS | XLC | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.08% | |
| AUM | $158.1B | $22.7B | |
| Dividend Yield | 2.59% | 1.32% | |
| Holdings | 8,747 | 26 | |
| YTD Return | +15.22% | -2.82% | |
| 1Y Return | +26.86% | +2.85% | |
| 3Y Return (annualized) | +20.34% | +20.37% | |
| 5Y Return (annualized) | +9.38% | +7.38% | |
| Volatility (annualized) | 15.1% | 19.0% | |
| Max Drawdown | -39.9% | -46.6% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2011 | Jun 18, 2018 |
VXUS vs XLC Performance
Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and State Street Communication Services Select Sector SPDR ETF (XLC) is a ETF from SPDR State Street Global Advisors. Over the past year VXUS returned +26.86% while XLC returned +2.85%. Year to date, VXUS is up 15.22% versus a loss of 2.82% for XLC.
Over three years, VXUS compounded at +20.34% per year against +20.37% for XLC; over five years the annualized figures are +9.38% and +7.38% respectively. Across the full 8-year window we track, XLC has the edge at +11.27% annualized vs +4.89%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLC has been the more volatile fund, with annualized monthly volatility of 19.0% 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 -46.6% for XLC. 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VXUS charges 0.05% per year while XLC charges 0.08%. On a $10,000 position that is $5 vs $8 annually, a gap of $3 per year that compounds over a long holding period. On income, VXUS currently yields 2.59% against 1.32% for XLC.
Holdings Overlap
VXUS and XLC share 0 holdings out of 7893 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 XLC?
VXUS has an expense ratio of 0.05% while XLC charges 0.08%. VXUS is the cheaper option. On a $10,000 investment, that is $3 per year of difference.
Which performed better, VXUS or XLC?
Over the past year VXUS returned +26.86% vs +2.85% for XLC, so VXUS leads on 1-year performance. Over the longest common window we track (8 years), VXUS annualized +4.89% vs +11.27% for XLC. Past performance does not guarantee future results.
Which is riskier, VXUS or XLC?
XLC has been the more volatile fund at 19.0% annualized versus 15.1% for VXUS. Worst drawdown: VXUS -39.9% vs XLC -46.6%.
Should I hold both VXUS and XLC?
VXUS and XLC have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VXUS and XLC?
VXUS and XLC share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7893 unique securities.
Which pays a higher dividend, VXUS or XLC?
VXUS yields 2.59% while XLC yields 1.32%, so VXUS currently pays the higher dividend yield.
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