HYI vs VXUS
HYI vs VXUS
Western Asset High Yield 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 7861 holdings.
Side-by-Side Comparison
| Metric | HYI | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.96% | 0.05% | |
| AUM | $146M | $156.5B | |
| Dividend Yield | 9.89% | 2.60% | |
| Holdings | 258 | 8,747 | |
| YTD Return | +0.25% | +14.57% | |
| 1Y Return | -2.58% | +27.82% | |
| 3Y Return (annualized) | +6.17% | +19.27% | |
| 5Y Return (annualized) | +1.37% | +9.28% | |
| Volatility (annualized) | 12.4% | 15.1% | |
| Max Drawdown | -48.5% | -39.9% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 27, 2010 | Jan 26, 2011 |
HYI vs VXUS Performance
Western Asset High Yield Defined Opportunity Fund Inc. (HYI) 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 HYI returned -2.58% while VXUS returned +27.82%. Year to date, HYI is up 0.25% versus a gain of 14.57% for VXUS.
Over three years, HYI compounded at +6.17% per year against +19.27% for VXUS; over five years the annualized figures are +1.37% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs -0.86%. 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 12.4% for HYI. 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 -48.5% for HYI 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYI charges 0.96% per year while VXUS charges 0.05%. On a $10,000 position that is $96 vs $5 annually, a gap of $91 per year that compounds over a long holding period. On income, HYI currently yields 9.89% against 2.60% for VXUS.
Holdings Overlap
HYI and VXUS share 1 holdings out of 8051 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in HYI | Weight in VXUS | Difference |
|---|---|---|---|
| 002007:HK | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
Which is cheaper, HYI or VXUS?
HYI has an expense ratio of 0.96% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $91 per year of difference.
Which performed better, HYI or VXUS?
Over the past year HYI returned -2.58% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), HYI annualized -0.86% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, HYI or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 12.4% for HYI. Worst drawdown: HYI -48.5% vs VXUS -39.9%.
Should I hold both HYI and VXUS?
HYI and VXUS have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYI and VXUS?
HYI and VXUS share 1 common holdings with a 0.0% weight overlap. Combined, they hold 8051 unique securities.
Which pays a higher dividend, HYI or VXUS?
HYI yields 9.89% while VXUS yields 2.60%, so HYI currently pays the higher dividend yield.
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