IBDS vs VXUS
IBDS vs VXUS
iShares iBonds Dec 2027 Term Corporate 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 | IBDS | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.05% | |
| AUM | $3.8B | $156.5B | |
| Dividend Yield | 4.31% | 2.60% | |
| Holdings | 663 | 8,747 | |
| YTD Return | +1.59% | +14.57% | |
| 1Y Return | +3.70% | +27.82% | |
| 3Y Return (annualized) | +5.07% | +19.27% | |
| 5Y Return (annualized) | +1.35% | +9.28% | |
| Volatility (annualized) | 5.6% | 15.1% | |
| Max Drawdown | -16.8% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 12, 2017 | Jan 26, 2011 |
IBDS vs VXUS Performance
iShares iBonds Dec 2027 Term Corporate ETF (IBDS) 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 IBDS returned +3.70% while VXUS returned +27.82%. Year to date, IBDS is up 1.59% versus a gain of 14.57% for VXUS.
Over three years, IBDS compounded at +5.07% per year against +19.27% for VXUS; over five years the annualized figures are +1.35% and +9.28% respectively. Across the full 9-year window we track, VXUS has the edge at +4.86% annualized vs +1.85%. 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 5.6% for IBDS. 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 -16.8% for IBDS 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 0.64. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBDS charges 0.10% per year while VXUS charges 0.05%. On a $10,000 position that is $10 vs $5 annually, a gap of $5 per year that compounds over a long holding period. On income, IBDS currently yields 4.31% against 2.60% for VXUS.
Holdings Overlap
IBDS and VXUS share 0 holdings out of 8462 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, IBDS or VXUS?
IBDS has an expense ratio of 0.10% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, IBDS or VXUS?
Over the past year IBDS returned +3.70% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (9 years), IBDS annualized +1.85% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, IBDS or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 5.6% for IBDS. Worst drawdown: IBDS -16.8% vs VXUS -39.9%.
Should I hold both IBDS and VXUS?
IBDS and VXUS have a monthly-return correlation of 0.64, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDS and VXUS?
IBDS and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8462 unique securities.
Which pays a higher dividend, IBDS or VXUS?
IBDS yields 4.31% while VXUS yields 2.60%, so IBDS currently pays the higher dividend yield.
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