GOVT vs VXUS

Quick Verdict

VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.

Lower Fees: TiedHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricGOVTVXUSWinner
Expense Ratio0.05%0.05%
AUM$43.6B$156.5B
Dividend Yield3.57%2.60%
Holdings2168,747
YTD Return-2.19%+13.65%
1Y Return-0.85%+28.53%
3Y Return (annualized)+2.49%+18.64%
5Y Return (annualized)-1.33%+9.00%
Volatility (annualized)4.5%15.1%
Max Drawdown-23.4%-39.9%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionFeb 14, 2012Jan 26, 2011

GOVT vs VXUS Performance

iShares US Treasury Bond ETF (GOVT) 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 GOVT returned -0.85% while VXUS returned +28.53%. Year to date, GOVT is down 2.19% versus a gain of 13.65% for VXUS.

Over three years, GOVT compounded at +2.49% per year against +18.64% for VXUS; over five years the annualized figures are -1.33% and +9.00% respectively. Across the full 14-year window we track, VXUS has the edge at +4.81% annualized vs +1.05%. 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 4.5% for GOVT. 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 -23.4% for GOVT 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 0.15. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

GOVT charges 0.05% per year while VXUS charges 0.05%. On a $10,000 position that is $5 vs $5 annually. On income, GOVT currently yields 3.57% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

GOVT and VXUS share 0 holdings out of 8048 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, GOVT or VXUS?

GOVT has an expense ratio of 0.05% while VXUS charges 0.05%. They cost the same. On a $10,000 investment, that is $0 per year of difference.

Which performed better, GOVT or VXUS?

Over the past year GOVT returned -0.85% vs +28.53% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (14 years), GOVT annualized +1.05% vs +4.81% for VXUS. Past performance does not guarantee future results.

Which is riskier, GOVT or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 4.5% for GOVT. Worst drawdown: GOVT -23.4% vs VXUS -39.9%.

Should I hold both GOVT and VXUS?

GOVT and VXUS have a monthly-return correlation of 0.15, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between GOVT and VXUS?

GOVT and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8048 unique securities.

Which pays a higher dividend, GOVT or VXUS?

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

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