VSDB 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

MetricVSDBVXUSWinner
Expense Ratio0.15%0.05%
AUM$896M$156.5B
Dividend Yield4.16%2.60%
Holdings8338,747
YTD Return-0.86%+13.57%
1Y Return+1.53%+28.78%
3Y Return (annualized)-+18.63%
5Y Return (annualized)-+9.05%
Volatility (annualized)2.1%15.1%
Max Drawdown-1.8%-39.9%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionApr 1, 2025Jan 26, 2011

VSDB vs VXUS Performance

Vanguard Short Duration Bond ETF (VSDB) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VSDB returned +1.53% while VXUS returned +28.78%. Year to date, VSDB is down 0.86% versus a gain of 13.57% for VXUS.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 2.1% for VSDB. 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 VSDB 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VSDB charges 0.15% per year while VXUS charges 0.05%. On a $10,000 position that is $15 vs $5 annually, a gap of $10 per year that compounds over a long holding period. On income, VSDB currently yields 4.16% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

VSDB and VXUS share 0 holdings out of 7934 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, VSDB or VXUS?

VSDB has an expense ratio of 0.15% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $10 per year of difference.

Which performed better, VSDB or VXUS?

Over the past year VSDB returned +1.53% vs +28.78% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (1 years), VSDB annualized +3.73% vs +4.80% for VXUS. Past performance does not guarantee future results.

Which is riskier, VSDB or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 2.1% for VSDB. Worst drawdown: VSDB -1.8% vs VXUS -39.9%.

Should I hold both VSDB and VXUS?

VSDB and VXUS have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VSDB and VXUS?

VSDB and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7934 unique securities.

Which pays a higher dividend, VSDB or VXUS?

VSDB yields 4.16% while VXUS yields 2.60%, so VSDB currently pays the higher dividend yield.

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