VXUS vs XBB

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricVXUSXBBWinner
Expense Ratio0.05%0.20%
AUM$156.5B$531M
Dividend Yield2.60%5.57%
Holdings8,7471,081
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 FamilyVanguard (US)BondBloxx
CategoryEquityFixed Income
InceptionJan 26, 2011May 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

0.0%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

StockWeight in VXUSWeight in XBBDifference
MIN:AU0.02%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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