VXUS vs WDI
VXUS vs WDI
Vanguard Total International Stock ETF vs Western Asset Diversified Income Fund
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 | VXUS | WDI | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 1.82% | |
| AUM | $156.5B | $723M | |
| Dividend Yield | 2.60% | 12.55% | |
| Holdings | 8,747 | 410 | |
| YTD Return | +11.13% | +2.12% | |
| 1Y Return | +27.13% | -0.29% | |
| 3Y Return (annualized) | +17.24% | +11.37% | |
| 5Y Return (annualized) | +8.71% | +2.93% | |
| Volatility (annualized) | 15.1% | 14.0% | |
| Max Drawdown | -39.9% | -32.5% | |
| Fund Family | Vanguard (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 26, 2011 | Jun 24, 2021 |
VXUS vs WDI Performance
Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and Western Asset Diversified Income Fund (WDI) is a ETF from Franklin Templeton Investments (US). Over the past year VXUS returned +27.13% while WDI returned -0.29%. Year to date, VXUS is up 11.13% versus a gain of 2.12% for WDI.
Over three years, VXUS compounded at +17.24% per year against +11.37% for WDI; over five years the annualized figures are +8.71% and +2.93% respectively. Across the full 5-year window we track, VXUS has the edge at +4.66% annualized vs +2.87%. 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 14.0% for WDI. 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 -39.9% for VXUS and -32.5% for WDI. 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VXUS charges 0.05% per year while WDI charges 1.82%. On a $10,000 position that is $5 vs $182 annually, a gap of $177 per year that compounds over a long holding period. On income, VXUS currently yields 2.60% against 12.55% for WDI.
Holdings Overlap
VXUS and WDI share 0 holdings out of 8052 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, VXUS or WDI?
VXUS has an expense ratio of 0.05% while WDI charges 1.82%. VXUS is the cheaper option. On a $10,000 investment, that is $177 per year of difference.
Which performed better, VXUS or WDI?
Over the past year VXUS returned +27.13% vs -0.29% for WDI, so VXUS leads on 1-year performance. Over the longest common window we track (5 years), VXUS annualized +4.66% vs +2.87% for WDI. Past performance does not guarantee future results.
Which is riskier, VXUS or WDI?
VXUS has been the more volatile fund at 15.1% annualized versus 14.0% for WDI. Worst drawdown: VXUS -39.9% vs WDI -32.5%.
Should I hold both VXUS and WDI?
VXUS and WDI have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VXUS and WDI?
VXUS and WDI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8052 unique securities.
Which pays a higher dividend, VXUS or WDI?
VXUS yields 2.60% while WDI yields 12.55%, so WDI currently pays the higher dividend yield.
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