VXUS vs XLII
Vanguard Total International Stock ETF vs State Street Industrial Select Sector SPDR Premium Income 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 | XLII | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.35% | |
| AUM | $158.1B | $11M | |
| Dividend Yield | 2.59% | 12.08% | |
| Holdings | 8,747 | 5 | |
| YTD Return | +14.33% | +11.63% | |
| 1Y Return | +25.32% | +19.73% | |
| 3Y Return (annualized) | +20.47% | - | |
| 5Y Return (annualized) | +9.72% | - | |
| Volatility (annualized) | 15.1% | 11.6% | |
| Max Drawdown | -39.9% | -10.1% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2011 | Jul 29, 2025 |
VXUS vs XLII Performance
Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and State Street Industrial Select Sector SPDR Premium Income ETF (XLII) is a ETF from State Street Investment Management. Over the past year VXUS returned +25.32% while XLII returned +19.73%. Year to date, VXUS is up 14.33% versus a gain of 11.63% for XLII.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 11.6% for XLII. 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 -10.1% for XLII. 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VXUS charges 0.05% per year while XLII 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 12.08% for XLII.
Holdings Overlap
VXUS and XLII share 0 holdings out of 7871 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 XLII?
VXUS has an expense ratio of 0.05% while XLII 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 XLII?
Over the past year VXUS returned +25.32% vs +19.73% for XLII, so VXUS leads on 1-year performance. Over the longest common window we track (1 years), VXUS annualized +4.84% vs +18.90% for XLII. Past performance does not guarantee future results.
Which is riskier, VXUS or XLII?
VXUS has been the more volatile fund at 15.1% annualized versus 11.6% for XLII. Worst drawdown: VXUS -39.9% vs XLII -10.1%.
Should I hold both VXUS and XLII?
VXUS and XLII have a monthly-return correlation of 0.77, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VXUS and XLII?
VXUS and XLII share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7871 unique securities.
Which pays a higher dividend, VXUS or XLII?
VXUS yields 2.59% while XLII yields 12.08%, so XLII currently pays the higher dividend yield.
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