VXUS vs XSW
Vanguard Total International Stock ETF vs State Street SPDR S&P Software & Services 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 | XSW | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.35% | |
| AUM | $158.1B | $516M | |
| Dividend Yield | 2.59% | 0.00% | |
| Holdings | 8,747 | 134 | |
| YTD Return | +15.44% | +6.54% | |
| 1Y Return | +26.36% | +5.20% | |
| 3Y Return (annualized) | +20.98% | +15.27% | |
| 5Y Return (annualized) | +9.68% | +3.09% | |
| Volatility (annualized) | 15.1% | 20.7% | |
| Max Drawdown | -39.9% | -45.4% | |
| Fund Family | Vanguard (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2011 | Sep 28, 2011 |
VXUS vs XSW Performance
Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and State Street SPDR S&P Software & Services ETF (XSW) is a ETF from State Street Investment Management. Over the past year VXUS returned +26.36% while XSW returned +5.20%. Year to date, VXUS is up 15.44% versus a gain of 6.54% for XSW.
Over three years, VXUS compounded at +20.98% per year against +15.27% for XSW; over five years the annualized figures are +9.68% and +3.09% respectively. Across the full 15-year window we track, XSW has the edge at +15.63% annualized vs +4.90%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSW has been the more volatile fund, with annualized monthly volatility of 20.7% 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 -45.4% for XSW. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VXUS charges 0.05% per year while XSW 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 0.00% for XSW.
Holdings Overlap
VXUS and XSW share 3 holdings out of 7998 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 XSW?
VXUS has an expense ratio of 0.05% while XSW 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 XSW?
Over the past year VXUS returned +26.36% vs +5.20% for XSW, so VXUS leads on 1-year performance. Over the longest common window we track (15 years), VXUS annualized +4.90% vs +15.63% for XSW. Past performance does not guarantee future results.
Which is riskier, VXUS or XSW?
XSW has been the more volatile fund at 20.7% annualized versus 15.1% for VXUS. Worst drawdown: VXUS -39.9% vs XSW -45.4%.
Should I hold both VXUS and XSW?
VXUS and XSW have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VXUS and XSW?
VXUS and XSW share 3 common holdings with a 0.0% weight overlap. Combined, they hold 7998 unique securities.
Which pays a higher dividend, VXUS or XSW?
VXUS yields 2.59% while XSW yields 0.00%, so VXUS currently pays the higher dividend yield.
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