VGMS vs VXUS
VGMS vs VXUS
Vanguard Multi-Sector Income 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 | VGMS | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.05% | |
| AUM | $235M | $156.5B | |
| Dividend Yield | 5.14% | 2.60% | |
| Holdings | 927 | 8,747 | |
| YTD Return | -1.54% | +11.13% | |
| 1Y Return | +2.46% | +27.13% | |
| 3Y Return (annualized) | - | +17.24% | |
| 5Y Return (annualized) | - | +8.71% | |
| Volatility (annualized) | 2.9% | 15.1% | |
| Max Drawdown | -2.9% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 9, 2025 | Jan 26, 2011 |
VGMS vs VXUS Performance
Vanguard Multi-Sector Income Bond ETF (VGMS) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VGMS returned +2.46% while VXUS returned +27.13%. Year to date, VGMS is down 1.54% versus a gain of 11.13% for VXUS.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 2.9% for VGMS. 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 -2.9% for VGMS 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VGMS charges 0.30% per year while VXUS charges 0.05%. On a $10,000 position that is $30 vs $5 annually, a gap of $25 per year that compounds over a long holding period. On income, VGMS currently yields 5.14% against 2.60% for VXUS.
Holdings Overlap
VGMS and VXUS share 3 holdings out of 8391 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VGMS | Weight in VXUS | Difference |
|---|---|---|---|
| BARC:LN | 0.10% | 0.19% | 0.09% |
| LOGG3:BV | 0.21% | 0.00% | 0.21% |
| ARGENT 5 01/09/38 | 0.20% | 0.00% | 0.20% |
Frequently Asked Questions
Which is cheaper, VGMS or VXUS?
VGMS has an expense ratio of 0.30% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $25 per year of difference.
Which performed better, VGMS or VXUS?
Over the past year VGMS returned +2.46% vs +27.13% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (1 years), VGMS annualized +3.65% vs +4.66% for VXUS. Past performance does not guarantee future results.
Which is riskier, VGMS or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 2.9% for VGMS. Worst drawdown: VGMS -2.9% vs VXUS -39.9%.
Should I hold both VGMS and VXUS?
VGMS and VXUS have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGMS and VXUS?
VGMS and VXUS share 3 common holdings with a 0.1% weight overlap. Combined, they hold 8391 unique securities.
Which pays a higher dividend, VGMS or VXUS?
VGMS yields 5.14% while VXUS yields 2.60%, so VGMS currently pays the higher dividend yield.
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