VXUS vs ZALT

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

MetricVXUSZALTWinner
Expense Ratio0.05%0.69%
AUM$156.5B$776M
Dividend Yield2.60%0.00%
Holdings8,7476
YTD Return+14.19%+5.55%
1Y Return+27.38%+9.80%
3Y Return (annualized)+19.53%-
5Y Return (annualized)+9.03%-
Volatility (annualized)15.1%3.9%
Max Drawdown-39.9%-8.2%
Fund FamilyVanguard (US)Innovator ETFs Trust
CategoryEquityAlternative
InceptionJan 26, 2011Oct 2, 2023

VXUS vs ZALT Performance

Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and Innovator US Equity 10 Buffer ETF - Quarterly (ZALT) is a ETF from Innovator ETFs Trust. Over the past year VXUS returned +27.38% while ZALT returned +9.80%. Year to date, VXUS is up 14.19% versus a gain of 5.55% for ZALT.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 3.9% for ZALT. 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 -8.2% for ZALT. 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VXUS charges 0.05% per year while ZALT charges 0.69%. On a $10,000 position that is $5 vs $69 annually, a gap of $64 per year that compounds over a long holding period. On income, VXUS currently yields 2.60% against 0.00% for ZALT.

Frequently Asked Questions

Which is cheaper, VXUS or ZALT?

VXUS has an expense ratio of 0.05% while ZALT charges 0.69%. VXUS is the cheaper option. On a $10,000 investment, that is $64 per year of difference.

Which performed better, VXUS or ZALT?

Over the past year VXUS returned +27.38% vs +9.80% for ZALT, so VXUS leads on 1-year performance. Over the longest common window we track (3 years), VXUS annualized +4.83% vs +10.93% for ZALT. Past performance does not guarantee future results.

Which is riskier, VXUS or ZALT?

VXUS has been the more volatile fund at 15.1% annualized versus 3.9% for ZALT. Worst drawdown: VXUS -39.9% vs ZALT -8.2%.

Should I hold both VXUS and ZALT?

VXUS and ZALT have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, VXUS or ZALT?

VXUS yields 2.60% while ZALT yields 0.00%, so VXUS currently pays the higher dividend yield.

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