VTC vs VXUS
VTC vs VXUS
Vanguard Total Corporate Bond ETF vs Vanguard Total International Stock ETF
Quick Verdict
VTC has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | VTC | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $1.8B | $156.5B | |
| Dividend Yield | 4.17% | 2.60% | |
| Holdings | 4,840 | 8,747 | |
| YTD Return | -0.43% | +14.57% | |
| 1Y Return | +1.84% | +27.82% | |
| 3Y Return (annualized) | +4.80% | +19.27% | |
| 5Y Return (annualized) | -0.12% | +9.28% | |
| Volatility (annualized) | 7.3% | 15.1% | |
| Max Drawdown | -22.4% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Nov 7, 2017 | Jan 26, 2011 |
VTC vs VXUS Performance
Vanguard Total Corporate Bond ETF (VTC) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VTC returned +1.84% while VXUS returned +27.82%. Year to date, VTC is down 0.43% versus a gain of 14.57% for VXUS.
Over three years, VTC compounded at +4.80% per year against +19.27% for VXUS; over five years the annualized figures are -0.12% and +9.28% respectively. Across the full 9-year window we track, VXUS has the edge at +4.86% annualized vs +0.98%. 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 7.3% for VTC. 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 -22.4% for VTC 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VTC 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, VTC currently yields 4.17% against 2.60% for VXUS.
Holdings Overlap
VTC and VXUS share 1 holdings out of 12058 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VTC | Weight in VXUS | Difference |
|---|---|---|---|
| LOGG3:BV | 0.02% | 0.00% | 0.02% |
Frequently Asked Questions
Which is cheaper, VTC or VXUS?
VTC has an expense ratio of 0.03% while VXUS charges 0.05%. VTC is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VTC or VXUS?
Over the past year VTC returned +1.84% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (9 years), VTC annualized +0.98% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, VTC or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 7.3% for VTC. Worst drawdown: VTC -22.4% vs VXUS -39.9%.
Should I hold both VTC and VXUS?
VTC and VXUS have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTC and VXUS?
VTC and VXUS share 1 common holdings with a 0.0% weight overlap. Combined, they hold 12058 unique securities.
Which pays a higher dividend, VTC or VXUS?
VTC yields 4.17% while VXUS yields 2.60%, so VTC currently pays the higher dividend yield.
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