VXUS vs ZSEP

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricVXUSZSEPWinner
Expense Ratio0.05%0.79%
AUM$156.5B$123M
Dividend Yield2.60%0.00%
Holdings8,7475
YTD Return+15.24%+3.58%
1Y Return+26.32%+5.91%
3Y Return (annualized)+19.85%-
5Y Return (annualized)+9.23%-
Volatility (annualized)15.1%2.7%
Max Drawdown-39.9%-4.0%
Fund FamilyVanguard (US)Innovator ETFs Trust
CategoryEquityAlternative
InceptionJan 26, 2011Aug 31, 2024

VXUS vs ZSEP Performance

Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and Innovator Equity Defined Protection ETF - 1 Yr September (ZSEP) is a ETF from Innovator ETFs Trust. Over the past year VXUS returned +26.32% while ZSEP returned +5.91%. Year to date, VXUS is up 15.24% versus a gain of 3.58% for ZSEP.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 2.7% for ZSEP. 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 -4.0% for ZSEP. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VXUS charges 0.05% per year while ZSEP charges 0.79%. On a $10,000 position that is $5 vs $79 annually, a gap of $74 per year that compounds over a long holding period. On income, VXUS currently yields 2.60% against 0.00% for ZSEP.

Frequently Asked Questions

Which is cheaper, VXUS or ZSEP?

VXUS has an expense ratio of 0.05% while ZSEP charges 0.79%. VXUS is the cheaper option. On a $10,000 investment, that is $74 per year of difference.

Which performed better, VXUS or ZSEP?

Over the past year VXUS returned +26.32% vs +5.91% for ZSEP, so VXUS leads on 1-year performance. Over the longest common window we track (2 years), VXUS annualized +4.89% vs +6.54% for ZSEP. Past performance does not guarantee future results.

Which is riskier, VXUS or ZSEP?

VXUS has been the more volatile fund at 15.1% annualized versus 2.7% for ZSEP. Worst drawdown: VXUS -39.9% vs ZSEP -4.0%.

Should I hold both VXUS and ZSEP?

VXUS and ZSEP have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, VXUS or ZSEP?

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

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