VXUS vs WEA
VXUS vs WEA
Vanguard Total International Stock ETF vs Western Asset Premier Bond 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 | WEA | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 1.22% | |
| AUM | $156.5B | $132M | |
| Dividend Yield | 2.60% | 7.44% | |
| Holdings | 8,747 | 386 | |
| YTD Return | +11.13% | -1.89% | |
| 1Y Return | +27.13% | +4.16% | |
| 3Y Return (annualized) | +17.24% | +6.23% | |
| 5Y Return (annualized) | +8.71% | +0.55% | |
| Volatility (annualized) | 15.1% | 15.8% | |
| Max Drawdown | -39.9% | -64.9% | |
| Fund Family | Vanguard (US) | Franklin Templeton Investments (US) | |
| Category | Equity | Fixed Income | |
| Inception | Jan 26, 2011 | Mar 28, 2002 |
VXUS vs WEA Performance
Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and Western Asset Premier Bond Fund (WEA) is a ETF from Franklin Templeton Investments (US). Over the past year VXUS returned +27.13% while WEA returned +4.16%. Year to date, VXUS is up 11.13% versus a loss of 1.89% for WEA.
Over three years, VXUS compounded at +17.24% per year against +6.23% for WEA; over five years the annualized figures are +8.71% and +0.55% respectively. Across the full 16-year window we track, VXUS has the edge at +4.66% annualized vs +0.15%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
WEA has been the more volatile fund, with annualized monthly volatility of 15.8% 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 -39.9% for VXUS and -64.9% for WEA. 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VXUS charges 0.05% per year while WEA charges 1.22%. On a $10,000 position that is $5 vs $122 annually, a gap of $117 per year that compounds over a long holding period. On income, VXUS currently yields 2.60% against 7.44% for WEA.
Holdings Overlap
VXUS and WEA share 0 holdings out of 8106 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 WEA?
VXUS has an expense ratio of 0.05% while WEA charges 1.22%. VXUS is the cheaper option. On a $10,000 investment, that is $117 per year of difference.
Which performed better, VXUS or WEA?
Over the past year VXUS returned +27.13% vs +4.16% for WEA, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VXUS annualized +4.66% vs +0.15% for WEA. Past performance does not guarantee future results.
Which is riskier, VXUS or WEA?
WEA has been the more volatile fund at 15.8% annualized versus 15.1% for VXUS. Worst drawdown: VXUS -39.9% vs WEA -64.9%.
Should I hold both VXUS and WEA?
VXUS and WEA have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VXUS and WEA?
VXUS and WEA share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8106 unique securities.
Which pays a higher dividend, VXUS or WEA?
VXUS yields 2.60% while WEA yields 7.44%, so WEA currently pays the higher dividend yield.
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