TLT vs VXUS
TLT vs VXUS
iShares 20+ Year Treasury Bond ETF 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 | TLT | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.05% | |
| AUM | $43.0B | $156.5B | |
| Dividend Yield | 4.53% | 2.60% | |
| Holdings | 48 | 8,747 | |
| YTD Return | -2.68% | +13.57% | |
| 1Y Return | -2.04% | +28.78% | |
| 3Y Return (annualized) | -0.34% | +18.63% | |
| 5Y Return (annualized) | -8.06% | +9.05% | |
| Volatility (annualized) | 13.4% | 15.1% | |
| Max Drawdown | -48.7% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 22, 2002 | Jan 26, 2011 |
TLT vs VXUS Performance
iShares 20+ Year Treasury Bond ETF (TLT) 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 TLT returned -2.04% while VXUS returned +28.78%. Year to date, TLT is down 2.68% versus a gain of 13.57% for VXUS.
Over three years, TLT compounded at -0.34% per year against +18.63% for VXUS; over five years the annualized figures are -8.06% and +9.05% respectively. Across the full 16-year window we track, VXUS has the edge at +4.80% annualized vs +0.81%. 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 13.4% for TLT. 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 -48.7% for TLT 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 -0.02. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TLT charges 0.15% per year while VXUS charges 0.05%. On a $10,000 position that is $15 vs $5 annually, a gap of $10 per year that compounds over a long holding period. On income, TLT currently yields 4.53% against 2.60% for VXUS.
Holdings Overlap
TLT and VXUS share 0 holdings out of 7904 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, TLT or VXUS?
TLT has an expense ratio of 0.15% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, TLT or VXUS?
Over the past year TLT returned -2.04% vs +28.78% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), TLT annualized +0.81% vs +4.80% for VXUS. Past performance does not guarantee future results.
Which is riskier, TLT or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 13.4% for TLT. Worst drawdown: TLT -48.7% vs VXUS -39.9%.
Should I hold both TLT and VXUS?
TLT and VXUS have a monthly-return correlation of -0.02, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TLT and VXUS?
TLT and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7904 unique securities.
Which pays a higher dividend, TLT or VXUS?
TLT yields 4.53% while VXUS yields 2.60%, so TLT currently pays the higher dividend yield.
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