TSEC vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricTSECVXUSWinner
Expense Ratio0.40%0.05%
AUM$162M$156.5B
Dividend Yield5.02%2.60%
Holdings1228,747
YTD Return+1.43%+11.13%
1Y Return+5.34%+27.13%
3Y Return (annualized)+6.83%+17.24%
5Y Return (annualized)-+8.71%
Volatility (annualized)2.5%15.1%
Max Drawdown-1.8%-39.9%
Fund FamilyTouchstone InvestmentsVanguard (US)
CategoryFixed IncomeEquity
InceptionJul 17, 2023Jan 26, 2011

TSEC vs VXUS Performance

Touchstone Securitized Income ETF (TSEC) is a ETF from Touchstone Investments and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year TSEC returned +5.34% while VXUS returned +27.13%. Year to date, TSEC is up 1.43% versus a gain of 11.13% for VXUS.

Over three years, TSEC compounded at +6.83% per year against +17.24% for VXUS. Across the full 3-year window we track, TSEC has the edge at +6.86% annualized vs +4.66%. 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 2.5% for TSEC. 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 -1.8% for TSEC 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 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

TSEC charges 0.40% per year while VXUS charges 0.05%. On a $10,000 position that is $40 vs $5 annually, a gap of $35 per year that compounds over a long holding period. On income, TSEC currently yields 5.02% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

TSEC and VXUS share 0 holdings out of 7880 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, TSEC or VXUS?

TSEC has an expense ratio of 0.40% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $35 per year of difference.

Which performed better, TSEC or VXUS?

Over the past year TSEC returned +5.34% vs +27.13% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (3 years), TSEC annualized +6.86% vs +4.66% for VXUS. Past performance does not guarantee future results.

Which is riskier, TSEC or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 2.5% for TSEC. Worst drawdown: TSEC -1.8% vs VXUS -39.9%.

Should I hold both TSEC and VXUS?

TSEC and VXUS have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between TSEC and VXUS?

TSEC and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7880 unique securities.

Which pays a higher dividend, TSEC or VXUS?

TSEC yields 5.02% while VXUS yields 2.60%, so TSEC currently pays the higher dividend yield.

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