VUSB vs VXUS
VUSB vs VXUS
Vanguard Ultra Short 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 | VUSB | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.05% | |
| AUM | $8.9B | $156.5B | |
| Dividend Yield | 4.38% | 2.60% | |
| Holdings | 1,262 | 8,747 | |
| YTD Return | -0.39% | +13.57% | |
| 1Y Return | +1.65% | +28.78% | |
| 3Y Return (annualized) | +4.41% | +18.63% | |
| 5Y Return (annualized) | +3.05% | +9.05% | |
| Volatility (annualized) | 1.2% | 15.1% | |
| Max Drawdown | -1.8% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 5, 2021 | Jan 26, 2011 |
VUSB vs VXUS Performance
Vanguard Ultra Short Bond ETF (VUSB) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VUSB returned +1.65% while VXUS returned +28.78%. Year to date, VUSB is down 0.39% versus a gain of 13.57% for VXUS.
Over three years, VUSB compounded at +4.41% per year against +18.63% for VXUS; over five years the annualized figures are +3.05% and +9.05% respectively. Across the full 5-year window we track, VXUS has the edge at +4.80% annualized vs +2.89%. 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 1.2% for VUSB. 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 VUSB 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 0.51. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VUSB charges 0.10% per year while VXUS charges 0.05%. On a $10,000 position that is $10 vs $5 annually, a gap of $5 per year that compounds over a long holding period. On income, VUSB currently yields 4.38% against 2.60% for VXUS.
Holdings Overlap
VUSB and VXUS share 0 holdings out of 8013 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, VUSB or VXUS?
VUSB has an expense ratio of 0.10% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VUSB or VXUS?
Over the past year VUSB returned +1.65% vs +28.78% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (5 years), VUSB annualized +2.89% vs +4.80% for VXUS. Past performance does not guarantee future results.
Which is riskier, VUSB or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 1.2% for VUSB. Worst drawdown: VUSB -1.8% vs VXUS -39.9%.
Should I hold both VUSB and VXUS?
VUSB and VXUS have a monthly-return correlation of 0.51, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VUSB and VXUS?
VUSB and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8013 unique securities.
Which pays a higher dividend, VUSB or VXUS?
VUSB yields 4.38% while VXUS yields 2.60%, so VUSB currently pays the higher dividend yield.
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