VXUS vs ZHDG

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

MetricVXUSZHDGWinner
Expense Ratio0.05%0.97%
AUM$156.5B$35M
Dividend Yield2.60%2.47%
Holdings8,74710
YTD Return+14.07%+7.62%
1Y Return+27.24%+13.88%
3Y Return (annualized)+19.27%+13.46%
5Y Return (annualized)+9.14%+6.09%
Volatility (annualized)15.1%12.5%
Max Drawdown-39.9%-23.3%
Fund FamilyVanguard (US)Zega ETFs
CategoryEquityEquity
InceptionJan 26, 2011Jul 6, 2021

VXUS vs ZHDG Performance

Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and ZEGA Buy and Hedge ETF (ZHDG) is a ETF from Zega ETFs. Over the past year VXUS returned +27.24% while ZHDG returned +13.88%. Year to date, VXUS is up 14.07% versus a gain of 7.62% for ZHDG.

Over three years, VXUS compounded at +19.27% per year against +13.46% for ZHDG; over five years the annualized figures are +9.14% and +6.09% respectively. Across the full 5-year window we track, ZHDG has the edge at +6.12% annualized vs +4.83%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 12.5% for ZHDG. 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 -23.3% for ZHDG. 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 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VXUS charges 0.05% per year while ZHDG charges 0.97%. On a $10,000 position that is $5 vs $97 annually, a gap of $92 per year that compounds over a long holding period. On income, VXUS currently yields 2.60% against 2.47% for ZHDG.

Holdings Overlap

0.0%overlap

VXUS and ZHDG share 0 holdings out of 7865 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 ZHDG?

VXUS has an expense ratio of 0.05% while ZHDG charges 0.97%. VXUS is the cheaper option. On a $10,000 investment, that is $92 per year of difference.

Which performed better, VXUS or ZHDG?

Over the past year VXUS returned +27.24% vs +13.88% for ZHDG, so VXUS leads on 1-year performance. Over the longest common window we track (5 years), VXUS annualized +4.83% vs +6.12% for ZHDG. Past performance does not guarantee future results.

Which is riskier, VXUS or ZHDG?

VXUS has been the more volatile fund at 15.1% annualized versus 12.5% for ZHDG. Worst drawdown: VXUS -39.9% vs ZHDG -23.3%.

Should I hold both VXUS and ZHDG?

VXUS and ZHDG have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VXUS and ZHDG?

VXUS and ZHDG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7865 unique securities.

Which pays a higher dividend, VXUS or ZHDG?

VXUS yields 2.60% while ZHDG yields 2.47%, so VXUS currently pays the higher dividend yield.

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