TMB vs VXUS
TMB vs VXUS
Thornburg Multi Sector 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 | TMB | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.55% | 0.05% | |
| AUM | $238M | $156.5B | |
| Dividend Yield | 4.60% | 2.60% | |
| Holdings | 403 | 8,747 | |
| YTD Return | +1.18% | +13.65% | |
| 1Y Return | +3.26% | +28.53% | |
| 3Y Return (annualized) | - | +18.64% | |
| 5Y Return (annualized) | - | +9.00% | |
| Volatility (annualized) | 2.0% | 15.1% | |
| Max Drawdown | -2.0% | -39.9% | |
| Fund Family | Thornburg Investment Management | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Feb 5, 2025 | Jan 26, 2011 |
TMB vs VXUS Performance
Thornburg Multi Sector Bond ETF (TMB) is a ETF from Thornburg Investment Management and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year TMB returned +3.26% while VXUS returned +28.53%. Year to date, TMB is up 1.18% versus a gain of 13.65% for VXUS.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 2.0% for TMB. 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 -2.0% for TMB 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 0.68. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
TMB charges 0.55% per year while VXUS charges 0.05%. On a $10,000 position that is $55 vs $5 annually, a gap of $50 per year that compounds over a long holding period. On income, TMB currently yields 4.60% against 2.60% for VXUS.
Holdings Overlap
TMB and VXUS share 0 holdings out of 8115 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, TMB or VXUS?
TMB has an expense ratio of 0.55% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $50 per year of difference.
Which performed better, TMB or VXUS?
Over the past year TMB returned +3.26% vs +28.53% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (2 years), TMB annualized +5.22% vs +4.81% for VXUS. Past performance does not guarantee future results.
Which is riskier, TMB or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 2.0% for TMB. Worst drawdown: TMB -2.0% vs VXUS -39.9%.
Should I hold both TMB and VXUS?
TMB and VXUS have a monthly-return correlation of 0.68, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between TMB and VXUS?
TMB and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8115 unique securities.
Which pays a higher dividend, TMB or VXUS?
TMB yields 4.60% while VXUS yields 2.60%, so TMB currently pays the higher dividend yield.
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