IAT vs VXUS

Quick Verdict

VXUS has a lower expense ratio. IAT delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: IATMore Diversified: VXUS

Side-by-Side Comparison

MetricIATVXUSWinner
Expense Ratio0.38%0.05%
AUM$666M$156.5B
Dividend Yield2.60%2.60%
Holdings358,747
YTD Return+17.14%+14.19%
1Y Return+33.91%+27.38%
3Y Return (annualized)+24.10%+19.53%
5Y Return (annualized)+4.74%+9.03%
Volatility (annualized)25.5%15.1%
Max Drawdown-78.8%-39.9%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryEquityEquity
InceptionMay 1, 2006Jan 26, 2011

IAT vs VXUS Performance

iShares US Regional Banks ETF (IAT) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year IAT returned +33.91% while VXUS returned +27.38%. Year to date, IAT is up 17.14% versus a gain of 14.19% for VXUS.

Over three years, IAT compounded at +24.10% per year against +19.53% for VXUS; over five years the annualized figures are +4.74% and +9.03% respectively. Across the full 16-year window we track, VXUS has the edge at +4.83% annualized vs +2.05%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IAT has been the more volatile fund, with annualized monthly volatility of 25.5% 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 -78.8% for IAT 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IAT charges 0.38% per year while VXUS charges 0.05%. On a $10,000 position that is $38 vs $5 annually, a gap of $33 per year that compounds over a long holding period. On income, IAT currently yields 2.60% against 2.60% for VXUS.

Holdings Overlap

0.1%overlap

IAT and VXUS share 1 holdings out of 7892 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IATWeight in VXUSDifference
HBAN4.45%0.05%4.40%

Frequently Asked Questions

Which is cheaper, IAT or VXUS?

IAT has an expense ratio of 0.38% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $33 per year of difference.

Which performed better, IAT or VXUS?

Over the past year IAT returned +33.91% vs +27.38% for VXUS, so IAT leads on 1-year performance. Over the longest common window we track (16 years), IAT annualized +2.05% vs +4.83% for VXUS. Past performance does not guarantee future results.

Which is riskier, IAT or VXUS?

IAT has been the more volatile fund at 25.5% annualized versus 15.1% for VXUS. Worst drawdown: IAT -78.8% vs VXUS -39.9%.

Should I hold both IAT and VXUS?

IAT and VXUS have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IAT and VXUS?

IAT and VXUS share 1 common holdings with a 0.1% weight overlap. Combined, they hold 7892 unique securities.

Which pays a higher dividend, IAT or VXUS?

IAT yields 2.60% while VXUS yields 2.60%, so IAT currently pays the higher dividend yield.

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