VXUS vs ZROZ
Vanguard Total International Stock ETF vs PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | VXUS | ZROZ | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.15% | |
| AUM | $156.5B | $1.3B | |
| Dividend Yield | 2.60% | 5.14% | |
| Holdings | 8,747 | 22 | |
| YTD Return | +15.00% | -6.67% | |
| 1Y Return | +26.87% | -5.67% | |
| 3Y Return (annualized) | +19.79% | -6.39% | |
| 5Y Return (annualized) | +9.26% | -13.91% | |
| Volatility (annualized) | 15.1% | 21.7% | |
| Max Drawdown | -39.9% | -63.5% | |
| Fund Family | Vanguard (US) | PIMCO (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 26, 2011 | Oct 30, 2009 |
VXUS vs ZROZ Performance
Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund (ZROZ) is a ETF from PIMCO (US). Over the past year VXUS returned +26.87% while ZROZ returned -5.67%. Year to date, VXUS is up 15.00% versus a loss of 6.67% for ZROZ.
Over three years, VXUS compounded at +19.79% per year against -6.39% for ZROZ; over five years the annualized figures are +9.26% and -13.91% respectively. Across the full 16-year window we track, VXUS has the edge at +4.88% annualized vs -0.29%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
ZROZ has been the more volatile fund, with annualized monthly volatility of 21.7% 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 -63.5% for ZROZ. 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 -0.05. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VXUS charges 0.05% per year while ZROZ charges 0.15%. On a $10,000 position that is $5 vs $15 annually, a gap of $10 per year that compounds over a long holding period. On income, VXUS currently yields 2.60% against 5.14% for ZROZ.
Holdings Overlap
VXUS and ZROZ share 0 holdings out of 7880 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 ZROZ?
VXUS has an expense ratio of 0.05% while ZROZ charges 0.15%. VXUS is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, VXUS or ZROZ?
Over the past year VXUS returned +26.87% vs -5.67% for ZROZ, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VXUS annualized +4.88% vs -0.29% for ZROZ. Past performance does not guarantee future results.
Which is riskier, VXUS or ZROZ?
ZROZ has been the more volatile fund at 21.7% annualized versus 15.1% for VXUS. Worst drawdown: VXUS -39.9% vs ZROZ -63.5%.
Should I hold both VXUS and ZROZ?
VXUS and ZROZ have a monthly-return correlation of -0.05, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VXUS and ZROZ?
VXUS and ZROZ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7880 unique securities.
Which pays a higher dividend, VXUS or ZROZ?
VXUS yields 2.60% while ZROZ yields 5.14%, so ZROZ currently pays the higher dividend yield.
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