VGIT vs VXUS
VGIT vs VXUS
Vanguard Intermediate Term Treasury ETF vs Vanguard Total International Stock ETF
Quick Verdict
VGIT has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.
Side-by-Side Comparison
| Metric | VGIT | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $42.1B | $156.5B | |
| Dividend Yield | 3.84% | 2.60% | |
| Holdings | 106 | 8,747 | |
| YTD Return | -0.55% | +13.65% | |
| 1Y Return | +1.34% | +28.53% | |
| 3Y Return (annualized) | +3.73% | +18.64% | |
| 5Y Return (annualized) | -0.19% | +9.00% | |
| Volatility (annualized) | 4.3% | 15.1% | |
| Max Drawdown | -17.2% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Jan 26, 2011 |
VGIT vs VXUS Performance
Vanguard Intermediate Term Treasury ETF (VGIT) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VGIT returned +1.34% while VXUS returned +28.53%. Year to date, VGIT is down 0.55% versus a gain of 13.65% for VXUS.
Over three years, VGIT compounded at +3.73% per year against +18.64% for VXUS; over five years the annualized figures are -0.19% and +9.00% respectively. Across the full 16-year window we track, VXUS has the edge at +4.81% annualized vs +0.76%. 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 4.3% for VGIT. 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 -17.2% for VGIT 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 0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGIT charges 0.03% per year while VXUS charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, VGIT currently yields 3.84% against 2.60% for VXUS.
Holdings Overlap
VGIT and VXUS share 0 holdings out of 7944 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, VGIT or VXUS?
VGIT has an expense ratio of 0.03% while VXUS charges 0.05%. VGIT is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VGIT or VXUS?
Over the past year VGIT returned +1.34% vs +28.53% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VGIT annualized +0.76% vs +4.81% for VXUS. Past performance does not guarantee future results.
Which is riskier, VGIT or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 4.3% for VGIT. Worst drawdown: VGIT -17.2% vs VXUS -39.9%.
Should I hold both VGIT and VXUS?
VGIT and VXUS have a monthly-return correlation of 0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGIT and VXUS?
VGIT and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7944 unique securities.
Which pays a higher dividend, VGIT or VXUS?
VGIT yields 3.84% while VXUS yields 2.60%, so VGIT currently pays the higher dividend yield.
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