GDO vs VXUS
GDO vs VXUS
Western Asset Global Corporate Defined Opportunity Fund Inc. vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.
Side-by-Side Comparison
| Metric | GDO | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 1.20% | 0.05% | |
| AUM | $84M | $156.5B | |
| Dividend Yield | 12.86% | 2.60% | |
| Holdings | 330 | 8,747 | |
| YTD Return | -6.16% | +11.13% | |
| 1Y Return | -0.53% | +27.13% | |
| 3Y Return (annualized) | +5.43% | +17.24% | |
| 5Y Return (annualized) | -1.18% | +8.71% | |
| Volatility (annualized) | 12.7% | 15.1% | |
| Max Drawdown | -41.8% | -39.9% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 24, 2009 | Jan 26, 2011 |
GDO vs VXUS Performance
Western Asset Global Corporate Defined Opportunity Fund Inc. (GDO) is a ETF from Franklin Templeton Investments (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year GDO returned -0.53% while VXUS returned +27.13%. Year to date, GDO is down 6.16% versus a gain of 11.13% for VXUS.
Over three years, GDO compounded at +5.43% per year against +17.24% for VXUS; over five years the annualized figures are -1.18% and +8.71% respectively. Across the full 16-year window we track, VXUS has the edge at +4.66% annualized vs -0.63%. 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 12.7% for GDO. 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 -41.8% for GDO 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
GDO charges 1.20% per year while VXUS charges 0.05%. On a $10,000 position that is $120 vs $5 annually, a gap of $115 per year that compounds over a long holding period. On income, GDO currently yields 12.86% against 2.60% for VXUS.
Holdings Overlap
GDO and VXUS share 2 holdings out of 8071 unique holdings combined, representing a 0.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, GDO or VXUS?
GDO has an expense ratio of 1.20% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $115 per year of difference.
Which performed better, GDO or VXUS?
Over the past year GDO returned -0.53% vs +27.13% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), GDO annualized -0.63% vs +4.66% for VXUS. Past performance does not guarantee future results.
Which is riskier, GDO or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 12.7% for GDO. Worst drawdown: GDO -41.8% vs VXUS -39.9%.
Should I hold both GDO and VXUS?
GDO and VXUS have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between GDO and VXUS?
GDO and VXUS share 2 common holdings with a 0.7% weight overlap. Combined, they hold 8071 unique securities.
Which pays a higher dividend, GDO or VXUS?
GDO yields 12.86% while VXUS yields 2.60%, so GDO currently pays the higher dividend yield.
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