VTWAX vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VTWAX offers more diversification with 9790 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VTWAX

Side-by-Side Comparison

MetricVTWAXVXUSWinner
Expense Ratio0.09%0.05%
AUM$12.1B$156.5B
Dividend Yield1.55%2.60%
Holdings10,0398,747
YTD Return+12.57%+14.57%
1Y Return+22.27%+27.82%
3Y Return (annualized)+17.50%+19.27%
5Y Return (annualized)+8.78%+9.28%
Volatility (annualized)15.2%15.1%
Max Drawdown-28.0%-39.9%
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
InceptionFeb 7, 2019Jan 26, 2011

VTWAX vs VXUS Performance

Vanguard Total World Stock Index Fund Admiral Class (VTWAX) is a mutual fund from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VTWAX returned +22.27% while VXUS returned +27.82%. Year to date, VTWAX is up 12.57% versus a gain of 14.57% for VXUS.

Over three years, VTWAX compounded at +17.50% per year against +19.27% for VXUS; over five years the annualized figures are +8.78% and +9.28% respectively. Across the full 5-year window we track, VTWAX has the edge at +8.78% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTWAX has been the more volatile fund, with annualized monthly volatility of 15.2% 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 -28.0% for VTWAX 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 0.91. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

VTWAX charges 0.09% per year while VXUS charges 0.05%. On a $10,000 position that is $9 vs $5 annually, a gap of $4 per year that compounds over a long holding period. On income, VTWAX currently yields 1.55% against 2.60% for VXUS.

Holdings Overlap

26.5%overlap

VTWAX and VXUS share 6952 holdings out of 10699 unique holdings combined, representing a 26.5% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VTWAXWeight in VXUSDifference
2330:TW1.25%3.41%2.16%
ASML:AS0.52%1.29%0.77%
5930:JP0.00%1.58%1.58%
0700:KYProProPro
000660:KRProProPro
9988:HKProProPro
HSBA:LNProProPro
NOVN:SMProProPro
AZN:LNProProPro
NESN:SMProProPro
See all 10 holdings VTWAX 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, VTWAX or VXUS?

VTWAX has an expense ratio of 0.09% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $4 per year of difference.

Which performed better, VTWAX or VXUS?

Over the past year VTWAX returned +22.27% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (5 years), VTWAX annualized +8.78% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, VTWAX or VXUS?

VTWAX has been the more volatile fund at 15.2% annualized versus 15.1% for VXUS. Worst drawdown: VTWAX -28.0% vs VXUS -39.9%.

Should I hold both VTWAX and VXUS?

VTWAX and VXUS have a monthly-return correlation of 0.91, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between VTWAX and VXUS?

VTWAX and VXUS share 6952 common holdings with a 26.5% weight overlap. Combined, they hold 10699 unique securities.

Which pays a higher dividend, VTWAX or VXUS?

VTWAX yields 1.55% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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