Quick Verdict

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

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricVXUSXLIWinner
Expense Ratio0.05%0.08%
AUM$156.5B$33.4B
Dividend Yield2.60%1.11%
Holdings8,74782
YTD Return+14.57%+17.84%
1Y Return+27.82%+24.45%
3Y Return (annualized)+19.27%+21.04%
5Y Return (annualized)+9.28%+14.15%
Volatility (annualized)15.1%18.7%
Max Drawdown-39.9%-63.3%
Fund FamilyVanguard (US)SPDR State Street Global Advisors
CategoryEquityEquity
InceptionJan 26, 2011Dec 16, 1998

VXUS vs XLI Performance

Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and State Street Industrial Select Sector SPDR ETF (XLI) is a ETF from SPDR State Street Global Advisors. Over the past year VXUS returned +27.82% while XLI returned +24.45%. Year to date, VXUS is up 14.57% versus a gain of 17.84% for XLI.

Over three years, VXUS compounded at +19.27% per year against +21.04% for XLI; over five years the annualized figures are +9.28% and +14.15% respectively. Across the full 16-year window we track, XLI has the edge at +8.12% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

XLI has been the more volatile fund, with annualized monthly volatility of 18.7% 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 -63.3% for XLI. 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VXUS charges 0.05% per year while XLI 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 2.60% against 1.11% for XLI.

Holdings Overlap

0.0%overlap

VXUS and XLI share 0 holdings out of 7943 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 XLI?

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

Over the past year VXUS returned +27.82% vs +24.45% for XLI, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VXUS annualized +4.86% vs +8.12% for XLI. Past performance does not guarantee future results.

Which is riskier, VXUS or XLI?

XLI has been the more volatile fund at 18.7% annualized versus 15.1% for VXUS. Worst drawdown: VXUS -39.9% vs XLI -63.3%.

Should I hold both VXUS and XLI?

VXUS and XLI have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VXUS and XLI?

VXUS and XLI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7943 unique securities.

Which pays a higher dividend, VXUS or XLI?

VXUS yields 2.60% while XLI yields 1.11%, so VXUS currently pays the higher dividend yield.

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