VXUS vs XBB
VXUS vs XBB
Vanguard Total International Stock ETF vs BondBloxx BB Rated USD High Yield Corporate Bond 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 | VXUS | XBB | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.20% | |
| AUM | $156.5B | $531M | |
| Dividend Yield | 2.60% | 5.57% | |
| Holdings | 8,747 | 1,081 | |
| YTD Return | +11.69% | +0.98% | |
| 1Y Return | +26.65% | +4.13% | |
| 3Y Return (annualized) | +18.15% | +7.42% | |
| 5Y Return (annualized) | +8.66% | - | |
| Volatility (annualized) | 15.0% | 7.3% | |
| Max Drawdown | -39.9% | -8.9% | |
| Fund Family | Vanguard (US) | BondBloxx | |
| Category | Equity | Fixed Income | |
| Inception | Jan 26, 2011 | May 24, 2022 |
VXUS vs XBB Performance
Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and BondBloxx BB Rated USD High Yield Corporate Bond ETF (XBB) is a ETF from BondBloxx. Over the past year VXUS returned +26.65% while XBB returned +4.13%. Year to date, VXUS is up 11.69% versus a gain of 0.98% for XBB.
Over three years, VXUS compounded at +18.15% per year against +7.42% for XBB. Across the full 4-year window we track, XBB has the edge at +5.36% annualized vs +4.69%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.0% compared with 7.3% for XBB. 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 -8.9% for XBB. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VXUS charges 0.05% per year while XBB charges 0.20%. On a $10,000 position that is $5 vs $20 annually, a gap of $15 per year that compounds over a long holding period. On income, VXUS currently yields 2.60% against 5.57% for XBB.
Holdings Overlap
VXUS and XBB share 1 holdings out of 8649 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 VXUS | Weight in XBB | Difference |
|---|---|---|---|
| MIN:AU | 0.02% | 0.14% | 0.12% |
Frequently Asked Questions
Which is cheaper, VXUS or XBB?
VXUS has an expense ratio of 0.05% while XBB charges 0.20%. VXUS is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, VXUS or XBB?
Over the past year VXUS returned +26.65% vs +4.13% for XBB, so VXUS leads on 1-year performance. Over the longest common window we track (4 years), VXUS annualized +4.69% vs +5.36% for XBB. Past performance does not guarantee future results.
Which is riskier, VXUS or XBB?
VXUS has been the more volatile fund at 15.0% annualized versus 7.3% for XBB. Worst drawdown: VXUS -39.9% vs XBB -8.9%.
Should I hold both VXUS and XBB?
VXUS and XBB have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VXUS and XBB?
VXUS and XBB share 1 common holdings with a 0.0% weight overlap. Combined, they hold 8649 unique securities.
Which pays a higher dividend, VXUS or XBB?
VXUS yields 2.60% while XBB yields 5.57%, so XBB currently pays the higher dividend yield.
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