BAB vs VXUS
BAB vs VXUS
Invesco Taxable Municipal Bond ETF vs Vanguard Total International Stock 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 | BAB | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.28% | 0.05% | |
| AUM | $1.0B | $156.5B | |
| Dividend Yield | 4.10% | 2.60% | |
| Holdings | 1,480 | 8,747 | |
| YTD Return | -0.31% | +14.57% | |
| 1Y Return | +3.15% | +27.82% | |
| 3Y Return (annualized) | +4.53% | +19.27% | |
| 5Y Return (annualized) | -1.03% | +9.28% | |
| Volatility (annualized) | 7.3% | 15.1% | |
| Max Drawdown | -27.8% | -39.9% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Nov 17, 2009 | Jan 26, 2011 |
BAB vs VXUS Performance
Invesco Taxable Municipal Bond ETF (BAB) is a ETF from Invesco (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year BAB returned +3.15% while VXUS returned +27.82%. Year to date, BAB is down 0.31% versus a gain of 14.57% for VXUS.
Over three years, BAB compounded at +4.53% per year against +19.27% for VXUS; over five years the annualized figures are -1.03% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs +1.53%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 7.3% for BAB. 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 -27.8% for BAB and -39.9% for VXUS. 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 0.27. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BAB charges 0.28% per year while VXUS charges 0.05%. On a $10,000 position that is $28 vs $5 annually, a gap of $23 per year that compounds over a long holding period. On income, BAB currently yields 4.10% against 2.60% for VXUS.
Holdings Overlap
BAB and VXUS share 0 holdings out of 8856 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, BAB or VXUS?
BAB has an expense ratio of 0.28% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $23 per year of difference.
Which performed better, BAB or VXUS?
Over the past year BAB returned +3.15% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), BAB annualized +1.53% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, BAB or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 7.3% for BAB. Worst drawdown: BAB -27.8% vs VXUS -39.9%.
Should I hold both BAB and VXUS?
BAB and VXUS have a monthly-return correlation of 0.27, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BAB and VXUS?
BAB and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8856 unique securities.
Which pays a higher dividend, BAB or VXUS?
BAB yields 4.10% while VXUS yields 2.60%, so BAB currently pays the higher dividend yield.
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