VLU vs VXUS

Quick Verdict

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

Lower Fees: VXUSHigher Returns: VLUMore Diversified: VXUS

Side-by-Side Comparison

MetricVLUVXUSWinner
Expense Ratio0.12%0.05%
AUM$750M$156.5B
Dividend Yield1.63%2.60%
Holdings1,5068,747
YTD Return+15.74%+11.13%
1Y Return+27.99%+27.13%
3Y Return (annualized)+18.56%+17.24%
5Y Return (annualized)+12.89%+8.71%
Volatility (annualized)15.9%15.1%
Max Drawdown-37.9%-39.9%
Fund FamilyState Street Investment ManagementVanguard (US)
CategoryEquityEquity
InceptionOct 24, 2012Jan 26, 2011

VLU vs VXUS Performance

State Street SPDR S&P 1500 Value Tilt ETF (VLU) is a ETF from State Street Investment Management and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VLU returned +27.99% while VXUS returned +27.13%. Year to date, VLU is up 15.74% versus a gain of 11.13% for VXUS.

Over three years, VLU compounded at +18.56% per year against +17.24% for VXUS; over five years the annualized figures are +12.89% and +8.71% respectively. Across the full 14-year window we track, VLU has the edge at +11.55% annualized vs +4.66%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VLU has been the more volatile fund, with annualized monthly volatility of 15.9% compared with 15.1% for VXUS. 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 -37.9% for VLU 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 0.80. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VLU charges 0.12% per year while VXUS charges 0.05%. On a $10,000 position that is $12 vs $5 annually, a gap of $7 per year that compounds over a long holding period. On income, VLU currently yields 1.63% against 2.60% for VXUS.

Holdings Overlap

0.2%overlap

VLU and VXUS share 17 holdings out of 9340 unique holdings combined, representing a 0.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VLUWeight in VXUSDifference
ORCL0.38%0.00%0.38%
KR0.29%0.00%0.29%
BG0.13%0.03%0.10%
HBANProProPro
SREProProPro
IRMProProPro
RBA:CAProProPro
AMProProPro
SIG:LNProProPro
FBKProProPro
See all 10 holdings VLU shares with VXUS
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, VLU or VXUS?

VLU has an expense ratio of 0.12% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $7 per year of difference.

Which performed better, VLU or VXUS?

Over the past year VLU returned +27.99% vs +27.13% for VXUS, so VLU leads on 1-year performance. Over the longest common window we track (14 years), VLU annualized +11.55% vs +4.66% for VXUS. Past performance does not guarantee future results.

Which is riskier, VLU or VXUS?

VLU has been the more volatile fund at 15.9% annualized versus 15.1% for VXUS. Worst drawdown: VLU -37.9% vs VXUS -39.9%.

Should I hold both VLU and VXUS?

VLU and VXUS have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VLU and VXUS?

VLU and VXUS share 17 common holdings with a 0.2% weight overlap. Combined, they hold 9340 unique securities.

Which pays a higher dividend, VLU or VXUS?

VLU yields 1.63% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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