VXUS vs ZTAX
Vanguard Total International Stock ETF vs X-Square Municipal Income Tax Free 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 | ZTAX | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.92% | |
| AUM | $158.1B | $5M | |
| Dividend Yield | 2.59% | 4.72% | |
| Holdings | 8,747 | 17 | |
| YTD Return | +15.23% | +1.48% | |
| 1Y Return | +26.78% | +7.61% | |
| 3Y Return (annualized) | +20.86% | +5.07% | |
| 5Y Return (annualized) | +9.66% | - | |
| Volatility (annualized) | 15.1% | 8.2% | |
| Max Drawdown | -39.9% | -15.3% | |
| Fund Family | Vanguard (US) | X-Square Capital | |
| Category | Equity | Tax Preferred | |
| Inception | Jan 26, 2011 | May 17, 2023 |
VXUS vs ZTAX Performance
Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and X-Square Municipal Income Tax Free ETF (ZTAX) is a ETF from X-Square Capital. Over the past year VXUS returned +26.78% while ZTAX returned +7.61%. Year to date, VXUS is up 15.23% versus a gain of 1.48% for ZTAX.
Over three years, VXUS compounded at +20.86% per year against +5.07% for ZTAX. Across the full 3-year window we track, ZTAX has the edge at +6.07% annualized vs +4.89%. 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 8.2% for ZTAX. 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 -15.3% for ZTAX. 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 0.13. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VXUS charges 0.05% per year while ZTAX charges 0.92%. On a $10,000 position that is $5 vs $92 annually, a gap of $87 per year that compounds over a long holding period. On income, VXUS currently yields 2.59% against 4.72% for ZTAX.
Holdings Overlap
VXUS and ZTAX share 0 holdings out of 7881 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 ZTAX?
VXUS has an expense ratio of 0.05% while ZTAX charges 0.92%. VXUS is the cheaper option. On a $10,000 investment, that is $87 per year of difference.
Which performed better, VXUS or ZTAX?
Over the past year VXUS returned +26.78% vs +7.61% for ZTAX, so VXUS leads on 1-year performance. Over the longest common window we track (3 years), VXUS annualized +4.89% vs +6.07% for ZTAX. Past performance does not guarantee future results.
Which is riskier, VXUS or ZTAX?
VXUS has been the more volatile fund at 15.1% annualized versus 8.2% for ZTAX. Worst drawdown: VXUS -39.9% vs ZTAX -15.3%.
Should I hold both VXUS and ZTAX?
VXUS and ZTAX have a monthly-return correlation of 0.13, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VXUS and ZTAX?
VXUS and ZTAX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7881 unique securities.
Which pays a higher dividend, VXUS or ZTAX?
VXUS yields 2.59% while ZTAX yields 4.72%, so ZTAX currently pays the higher dividend yield.
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