CMBS vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricCMBSVXUSWinner
Expense Ratio0.25%0.05%
AUM$473M$156.5B
Dividend Yield3.57%2.60%
Holdings4678,747
YTD Return+0.12%+11.13%
1Y Return+3.27%+27.13%
3Y Return (annualized)+5.47%+17.24%
5Y Return (annualized)+0.60%+8.71%
Volatility (annualized)3.9%15.1%
Max Drawdown-16.4%-39.9%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionFeb 14, 2012Jan 26, 2011

CMBS vs VXUS Performance

iShares CMBS ETF (CMBS) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year CMBS returned +3.27% while VXUS returned +27.13%. Year to date, CMBS is up 0.12% versus a gain of 11.13% for VXUS.

Over three years, CMBS compounded at +5.47% per year against +17.24% for VXUS; over five years the annualized figures are +0.60% and +8.71% respectively. Across the full 15-year window we track, VXUS has the edge at +4.66% annualized vs +0.83%. 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 3.9% for CMBS. 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 -16.4% for CMBS and -39.9% for VXUS. 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

CMBS charges 0.25% per year while VXUS charges 0.05%. On a $10,000 position that is $25 vs $5 annually, a gap of $20 per year that compounds over a long holding period. On income, CMBS currently yields 3.57% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

CMBS and VXUS share 0 holdings out of 8304 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, CMBS or VXUS?

CMBS has an expense ratio of 0.25% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $20 per year of difference.

Which performed better, CMBS or VXUS?

Over the past year CMBS returned +3.27% vs +27.13% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (15 years), CMBS annualized +0.83% vs +4.66% for VXUS. Past performance does not guarantee future results.

Which is riskier, CMBS or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 3.9% for CMBS. Worst drawdown: CMBS -16.4% vs VXUS -39.9%.

Should I hold both CMBS and VXUS?

CMBS and VXUS have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between CMBS and VXUS?

CMBS and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8304 unique securities.

Which pays a higher dividend, CMBS or VXUS?

CMBS yields 3.57% while VXUS yields 2.60%, so CMBS currently pays the higher dividend yield.

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