PAI vs VXUS
PAI vs VXUS
Western Asset Investment Grade Income 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 | PAI | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.73% | 0.05% | |
| AUM | $123M | $156.5B | |
| Dividend Yield | 4.81% | 2.60% | |
| Holdings | 476 | 8,747 | |
| YTD Return | -1.82% | +13.57% | |
| 1Y Return | -2.63% | +28.78% | |
| 3Y Return (annualized) | +6.27% | +18.63% | |
| 5Y Return (annualized) | -1.06% | +9.05% | |
| Volatility (annualized) | 12.6% | 15.1% | |
| Max Drawdown | -49.6% | -39.9% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 22, 1973 | Jan 26, 2011 |
PAI vs VXUS Performance
Western Asset Investment Grade Income Fund Inc. (PAI) 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 PAI returned -2.63% while VXUS returned +28.78%. Year to date, PAI is down 1.82% versus a gain of 13.57% for VXUS.
Over three years, PAI compounded at +6.27% per year against +18.63% for VXUS; over five years the annualized figures are -1.06% and +9.05% respectively. Across the full 16-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 12.6% for PAI. 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 -49.6% for PAI 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
PAI charges 0.73% per year while VXUS charges 0.05%. On a $10,000 position that is $73 vs $5 annually, a gap of $68 per year that compounds over a long holding period. On income, PAI currently yields 4.81% against 2.60% for VXUS.
Holdings Overlap
PAI and VXUS share 2 holdings out of 8179 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in PAI | Weight in VXUS | Difference |
|---|---|---|---|
| HSBA:LN | 0.24% | 0.72% | 0.48% |
| ARGENT 4.125 07/09/3 | 0.17% | 0.00% | 0.17% |
Frequently Asked Questions
Which is cheaper, PAI or VXUS?
PAI has an expense ratio of 0.73% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $68 per year of difference.
Which performed better, PAI or VXUS?
Over the past year PAI returned -2.63% vs +28.78% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), PAI annualized +0.09% vs +4.80% for VXUS. Past performance does not guarantee future results.
Which is riskier, PAI or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 12.6% for PAI. Worst drawdown: PAI -49.6% vs VXUS -39.9%.
Should I hold both PAI and VXUS?
PAI 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 PAI and VXUS?
PAI and VXUS share 2 common holdings with a 0.2% weight overlap. Combined, they hold 8179 unique securities.
Which pays a higher dividend, PAI or VXUS?
PAI yields 4.81% while VXUS yields 2.60%, so PAI currently pays the higher dividend yield.
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