VXUS vs ZTWO
VXUS vs ZTWO
Vanguard Total International Stock ETF vs F/m 2-Year Investment Grade Corporate Bond ETF
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 | ZTWO | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.15% | |
| AUM | $156.5B | $18M | |
| Dividend Yield | 2.60% | 4.45% | |
| Holdings | 8,747 | 427 | |
| YTD Return | +14.57% | +1.45% | |
| 1Y Return | +27.82% | +3.46% | |
| 3Y Return (annualized) | +19.27% | - | |
| 5Y Return (annualized) | +9.28% | - | |
| Volatility (annualized) | 15.1% | 1.4% | |
| Max Drawdown | -39.9% | -0.9% | |
| Fund Family | Vanguard (US) | F-m investments | |
| Category | Equity | Fixed Income | |
| Inception | Jan 26, 2011 | Jan 10, 2024 |
VXUS vs ZTWO Performance
Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and F/m 2-Year Investment Grade Corporate Bond ETF (ZTWO) is a ETF from F-m investments. Over the past year VXUS returned +27.82% while ZTWO returned +3.46%. Year to date, VXUS is up 14.57% versus a gain of 1.45% for ZTWO.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 1.4% for ZTWO. 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 -0.9% for ZTWO. 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 ZTWO 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 4.45% for ZTWO.
Holdings Overlap
VXUS and ZTWO share 0 holdings out of 8263 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 ZTWO?
VXUS has an expense ratio of 0.05% while ZTWO 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 ZTWO?
Over the past year VXUS returned +27.82% vs +3.46% for ZTWO, so VXUS leads on 1-year performance. Over the longest common window we track (3 years), VXUS annualized +4.86% vs +4.65% for ZTWO. Past performance does not guarantee future results.
Which is riskier, VXUS or ZTWO?
VXUS has been the more volatile fund at 15.1% annualized versus 1.4% for ZTWO. Worst drawdown: VXUS -39.9% vs ZTWO -0.9%.
Should I hold both VXUS and ZTWO?
VXUS and ZTWO have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VXUS and ZTWO?
VXUS and ZTWO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8263 unique securities.
Which pays a higher dividend, VXUS or ZTWO?
VXUS yields 2.60% while ZTWO yields 4.45%, so ZTWO currently pays the higher dividend yield.
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