IAI vs VXUS
iShares US Broker-Dealers & Securities Exchanges ETF vs Vanguard Total International Stock ETF
Which is better, IAI or VXUS?
All Cap Blend against Large Cap Blend.
VXUS has a lower expense ratio. IAI led over 3Y, 5Y and the full window, VXUS over 1Y.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IAI | VXUS |
|---|---|---|
| Expense Ratio | 0.37% | 0.05%Best |
| AUM | $1.4B | $158.1B |
| Dividend Yield | 1.10% | 2.51% |
| Holdings | 40 | 8,747 |
| YTD Return | +5.09% | +13.35%Best |
| 1Y Return | +9.44% | +22.44%Best |
| 3Y Return (annualized) | +28.10%Best | +19.44% |
| 5Y Return (annualized) | +13.87%Best | +8.82% |
| Volatility (annualized) | 20.7% | 15.0%Best |
| Max Drawdown | -40.4% | -39.9%Best |
| $10,000 over 5 years | $19,145Best | $15,260 |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | All Cap Blend | Large Cap Blend |
| Inception | May 1, 2006 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jan 28, 2011 to Sep 10, 2026 (15.6 years).
IAI vs VXUS growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 15.6 years both funds cover.
IAI vs VXUS Performance
iShares US Broker-Dealers & Securities Exchanges ETF (IAI) is an ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year IAI returned +9.44% while VXUS returned +22.44%. Year to date, IAI is up 5.09% versus a gain of 13.35% for VXUS.
Over three years, IAI compounded at +28.10% per year against +19.44% for VXUS; over five years the annualized figures are +13.87% and +8.82% respectively. Across the full 16-year window we track, IAI has the edge at +13.29% annualized vs +4.76%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IAI has been the more volatile fund, with annualized monthly volatility of 20.7% compared with 15.0% 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 -40.4% for IAI and -39.9% for VXUS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.67. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IAI charges 0.37% per year while VXUS charges 0.05%. On a $10,000 position that is $37 vs $5 annually, a gap of $32 per year that compounds over a long holding period. On income, IAI currently yields 1.10% against 2.51% for VXUS.
Holdings Overlap
We hold position weights for 36 holdings in IAI and 8,091 in VXUS, totalling 99.9% and 87.7% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 63 days apart, IAI as of Sep 1, 2026 and VXUS as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 36 positions we hold weights for in IAI and 8,091 in VXUS, against full books of 40 and 8,747.
You are not choosing between two funds in isolation.
Whichever of IAI and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IAI or VXUS?
IAI has an expense ratio of 0.37% while VXUS charges 0.05%. VXUS is the cheaper option, by $32 a year on a $10,000 investment.
Which performed better, IAI or VXUS?
Over the past year IAI returned +9.44% vs +22.44% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), IAI annualized +13.29% vs +4.76% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IAI or VXUS?
IAI has been the more volatile fund at 20.7% annualized versus 15.0% for VXUS. Worst drawdown: IAI -40.4% vs VXUS -39.9%.
Should I hold both IAI and VXUS?
IAI and VXUS have a monthly-return correlation of 0.67, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IAI or VXUS?
IAI yields 1.10% while VXUS yields 2.51%, so VXUS currently pays the higher dividend yield.
Is VXUS better than IAI?
VXUS has a lower expense ratio. IAI led over 3Y, 5Y and the full window, VXUS over 1Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.