VXUS vs XSHQ
VXUS vs XSHQ
Vanguard Total International Stock ETF vs Invesco S&P SmallCap Quality ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | VXUS | XSHQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.29% | |
| AUM | $156.5B | $248M | |
| Dividend Yield | 2.60% | 1.17% | |
| Holdings | 8,747 | 118 | |
| YTD Return | +14.57% | +16.14% | |
| 1Y Return | +27.82% | +19.10% | |
| 3Y Return (annualized) | +19.27% | +10.35% | |
| 5Y Return (annualized) | +9.28% | +7.38% | |
| Volatility (annualized) | 15.1% | 19.2% | |
| Max Drawdown | -39.9% | -38.3% | |
| Fund Family | Vanguard (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2011 | Apr 3, 2017 |
VXUS vs XSHQ Performance
Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US) and Invesco S&P SmallCap Quality ETF (XSHQ) is a ETF from Invesco (US). Over the past year VXUS returned +27.82% while XSHQ returned +19.10%. Year to date, VXUS is up 14.57% versus a gain of 16.14% for XSHQ.
Over three years, VXUS compounded at +19.27% per year against +10.35% for XSHQ; over five years the annualized figures are +9.28% and +7.38% respectively. Across the full 9-year window we track, XSHQ has the edge at +9.15% annualized vs +4.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XSHQ has been the more volatile fund, with annualized monthly volatility of 19.2% 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 -38.3% for XSHQ. 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VXUS charges 0.05% per year while XSHQ charges 0.29%. On a $10,000 position that is $5 vs $29 annually, a gap of $24 per year that compounds over a long holding period. On income, VXUS currently yields 2.60% against 1.17% for XSHQ.
Holdings Overlap
VXUS and XSHQ share 2 holdings out of 7979 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 XSHQ?
VXUS has an expense ratio of 0.05% while XSHQ charges 0.29%. VXUS is the cheaper option. On a $10,000 investment, that is $24 per year of difference.
Which performed better, VXUS or XSHQ?
Over the past year VXUS returned +27.82% vs +19.10% for XSHQ, so VXUS leads on 1-year performance. Over the longest common window we track (9 years), VXUS annualized +4.86% vs +9.15% for XSHQ. Past performance does not guarantee future results.
Which is riskier, VXUS or XSHQ?
XSHQ has been the more volatile fund at 19.2% annualized versus 15.1% for VXUS. Worst drawdown: VXUS -39.9% vs XSHQ -38.3%.
Should I hold both VXUS and XSHQ?
VXUS and XSHQ have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VXUS and XSHQ?
VXUS and XSHQ share 2 common holdings with a 0.0% weight overlap. Combined, they hold 7979 unique securities.
Which pays a higher dividend, VXUS or XSHQ?
VXUS yields 2.60% while XSHQ yields 1.17%, so VXUS currently pays the higher dividend yield.
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