TLTD vs. VXUS

Last updated Jun 4, 2026

TLTD (FlexShares Morningstar Developed Markets ex-US Factor Tilt) and VXUS (Vanguard Total International Stock ETF) are both Global Equities funds - TLTD tracks the Morningstar Developed Markets ex-US Factor Tilt Index while VXUS tracks the FTSE Global All Cap ex US Index. Both are passively managed. Over the past 10 years, TLTD returned 9.50%/yr vs 9.76%/yr for VXUS. Their correlation of 0.93 suggests significant overlap in exposure. TLTD charges 0.39%/yr vs 0.05%/yr for VXUS.

Performance

TLTD vs. VXUS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Morningstar Developed Markets ex-US Factor Tilt (TLTD) and Vanguard Total International Stock ETF (VXUS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TLTD achieves a 8.45% return, which is significantly lower than VXUS's 14.25% return. Both investments have delivered pretty close results over the past 10 years, with TLTD having a 9.50% annualized return and VXUS not far ahead at 9.76%.

TLTD

• 1D: -0.79%
• 1M: 2.60%
• YTD: 8.45%
• 6M: 11.89%
• 1Y: 26.70%
• 3Y*: 19.83%
• 5Y*: 9.51%
• 10Y*: 9.50%

VXUS

• 1D: -0.99%
• 1M: 4.68%
• YTD: 14.25%
• 6M: 16.92%
• 1Y: 32.01%
• 3Y*: 19.30%
• 5Y*: 8.46%
• 10Y*: 9.76%

*Multi-year figures are annualized to reflect compound growth (CAGR)

TLTD vs. VXUS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TLTD FlexShares Morningstar Developed Markets ex-US Factor Tilt	8.45%	39.69%	4.78%	17.19%	-13.74%	12.84%	4.21%	21.26%	-17.57%	26.27%
VXUS Vanguard Total International Stock ETF	14.25%	32.35%	5.08%	15.86%	-16.08%	8.98%	10.66%	21.75%	-14.43%	27.46%

Correlation

The correlation between TLTD and VXUS is 0.92, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Oct 3, 2012	0.93

The correlation between TLTD and VXUS has been stable across timeframes, ranging from 0.92 to 0.96 - a consistent structural relationship.

TLTD vs. VXUS - Sectors Allocation Comparison

Sectors	TLTD	VXUS
Financial Services	32.7%	22.3%
Industrials	13.5%	16.1%
Technology	10.3%	18.1%
Energy	7.7%	5.2%
Basic Materials	7.4%	7.6%
Consumer Cyclical	5.6%	8.4%
Healthcare	4.2%	7.1%
Consumer Defensive	3.5%	5.0%
Utilities	3.3%	3.2%
Communication Services	2.0%	4.4%
Real Estate	0.9%	2.6%

Return for Risk

TLTD vs. VXUS — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

TLTD

TLTD Risk / Return Rank: 51
TLTD Sharpe Ratio Rank: 54
TLTD Sortino Ratio Rank: 53
TLTD Omega Ratio Rank: 53
TLTD Calmar Ratio Rank: 45
TLTD Martin Ratio Rank: 50

VXUS

VXUS Risk / Return Rank: 60
VXUS Sharpe Ratio Rank: 61
VXUS Sortino Ratio Rank: 60
VXUS Omega Ratio Rank: 62
VXUS Calmar Ratio Rank: 56
VXUS Martin Ratio Rank: 61

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

TLTD vs. VXUS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Morningstar Developed Markets ex-US Factor Tilt (TLTD) and Vanguard Total International Stock ETF (VXUS). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	TLTD	VXUS	Difference
Sharpe ratio: Return per unit of total volatility	1.86	2.12	-0.26
Sortino ratio: Return per unit of downside risk	2.60	2.90	-0.30
Omega ratio: Gain probability vs. loss probability	1.33	1.39	-0.05
Calmar ratio: Return relative to maximum drawdown	2.21	2.85	-0.64
Martin ratio: Return relative to average drawdown	8.49	11.14	-2.65
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TLTD vs. VXUS - Sharpe Ratio Comparison

The current TLTD Sharpe Ratio is 1.86, which is comparable to the VXUS Sharpe Ratio of 2.12. The chart below compares the historical Sharpe Ratios of TLTD and VXUS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	TLTD	VXUS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.86	2.12	-0.26
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.60	0.53	+0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.57	0.57	0.00
Sharpe Ratio (All Time) Calculated using the full available price history	0.52	0.39	+0.13

Drawdowns

TLTD vs. VXUS - Drawdown Comparison

The maximum TLTD drawdown since its inception was -40.62%, which is greater than VXUS's maximum drawdown of -35.97%. Use the drawdown chart below to compare losses from any high point for TLTD and VXUS.

Drawdown Indicators

	TLTD	VXUS	Difference
Max Drawdown Largest peak-to-trough decline	-40.62%	-35.97%	-4.65%
Max Drawdown (1Y) Largest decline over 1 year	-12.11%	-11.27%	-0.84%
Max Drawdown (3Y) Largest decline over 3 years	-13.10%	-13.58%	+0.48%
Max Drawdown (5Y) Largest decline over 5 years	-28.96%	-29.44%	+0.48%
Max Drawdown (10Y) Largest decline over 10 years	-40.62%	-35.97%	-4.65%
Current Drawdown Current decline from peak	-2.35%	-0.99%	-1.36%
Average Drawdown Average peak-to-trough decline	-7.68%	-8.22%	+0.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.15%	2.88%	+0.27%

Volatility

TLTD vs. VXUS - Volatility Comparison

The current volatility for FlexShares Morningstar Developed Markets ex-US Factor Tilt (TLTD) is 4.34%, while Vanguard Total International Stock ETF (VXUS) has a volatility of 5.60%. This indicates that TLTD experiences smaller price fluctuations and is considered to be less risky than VXUS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TLTD	VXUS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.34%	5.60%	-1.26%
Volatility (6M) Calculated over the trailing 6-month period	11.99%	13.00%	-1.01%
Volatility (1Y) Calculated over the trailing 1-year period	14.46%	15.21%	-0.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.97%	16.05%	-0.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.81%	17.16%	-0.35%

TLTD vs. VXUS - Expense Ratio Comparison

TLTD has a 0.39% expense ratio, which is higher than VXUS's 0.05% expense ratio.

Dividends

TLTD vs. VXUS - Dividend Comparison

TLTD's dividend yield for the trailing twelve months is around 3.08%, more than VXUS's 2.66% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TLTD FlexShares Morningstar Developed Markets ex-US Factor Tilt	3.08%	3.44%	3.88%	3.39%	2.76%	3.44%	2.04%	3.46%	3.16%	2.71%	2.93%	2.56%
VXUS Vanguard Total International Stock ETF	2.66%	3.18%	3.37%	3.24%	3.09%	3.10%	2.14%	3.06%	3.18%	2.73%	2.93%	2.83%

Frequently Asked Questions

Can I hold both TLTD and VXUS in my portfolio?

With a correlation of 0.92, TLTD and VXUS move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, TLTD or VXUS?

VXUS has higher volatility (5.60%) compared to TLTD (4.34%). In terms of maximum drawdown, TLTD dropped -40.62% vs VXUS's -35.97%.

Which ETF is better, TLTD or VXUS?

On 10-year performance, VXUS leads with 9.76% vs 9.50% for TLTD. On fees, VXUS is cheaper at 0.05% per year. On volatility, TLTD has been the lower-risk option at 4.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TLTD or VXUS?

Over the 10-year period, VXUS has performed better with a 9.76% return vs 9.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TLTD or VXUS?

VXUS is cheaper with a 0.05% expense ratio, compared with 0.39% for TLTD.

Which ETF pays a higher dividend yield, TLTD or VXUS?

TLTD has the higher dividend yield at 3.08%, compared with 2.66% for VXUS.

What is the main difference between TLTD and VXUS?

TLTD tracks Morningstar Developed Markets ex-US Factor Tilt Index, while VXUS tracks FTSE Global All Cap ex US Index. They also come from different issuers: Northern Trust and Vanguard. Their fees differ too: 0.39% for TLTD and 0.05% for VXUS.

Which has better risk-adjusted returns?

VXUS currently has the higher Sharpe Ratio (2.12 vs 1.86), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.