MBSD vs VXUS
MBSD vs VXUS
FlexShares Disciplined Duration MBS Index Fund 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 | MBSD | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.05% | |
| AUM | $89M | $156.5B | |
| Dividend Yield | 4.19% | 2.60% | |
| Holdings | 482 | 8,747 | |
| YTD Return | +0.12% | +13.57% | |
| 1Y Return | +2.89% | +28.78% | |
| 3Y Return (annualized) | +4.37% | +18.63% | |
| 5Y Return (annualized) | +0.47% | +9.05% | |
| Volatility (annualized) | 3.5% | 15.1% | |
| Max Drawdown | -18.0% | -39.9% | |
| Fund Family | Flexshares Trust | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 3, 2014 | Jan 26, 2011 |
MBSD vs VXUS Performance
FlexShares Disciplined Duration MBS Index Fund (MBSD) is a ETF from Flexshares Trust and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year MBSD returned +2.89% while VXUS returned +28.78%. Year to date, MBSD is up 0.12% versus a gain of 13.57% for VXUS.
Over three years, MBSD compounded at +4.37% per year against +18.63% for VXUS; over five years the annualized figures are +0.47% and +9.05% respectively. Across the full 12-year window we track, VXUS has the edge at +4.80% annualized vs -0.09%. 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 3.5% for MBSD. 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 -18.0% for MBSD 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 0.50. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MBSD charges 0.20% per year while VXUS charges 0.05%. On a $10,000 position that is $20 vs $5 annually, a gap of $15 per year that compounds over a long holding period. On income, MBSD currently yields 4.19% against 2.60% for VXUS.
Holdings Overlap
MBSD and VXUS share 0 holdings out of 8322 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, MBSD or VXUS?
MBSD has an expense ratio of 0.20% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, MBSD or VXUS?
Over the past year MBSD returned +2.89% vs +28.78% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (12 years), MBSD annualized -0.09% vs +4.80% for VXUS. Past performance does not guarantee future results.
Which is riskier, MBSD or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 3.5% for MBSD. Worst drawdown: MBSD -18.0% vs VXUS -39.9%.
Should I hold both MBSD and VXUS?
MBSD and VXUS have a monthly-return correlation of 0.50, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MBSD and VXUS?
MBSD and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8322 unique securities.
Which pays a higher dividend, MBSD or VXUS?
MBSD yields 4.19% while VXUS yields 2.60%, so MBSD currently pays the higher dividend yield.
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