IBDW vs VXUS

IBDW vs VXUS

Which is better, IBDW or VXUS?

VXUS has been ahead.

VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VXUSHigher Returns: VXUS

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

MetricIBDWVXUS
Expense Ratio0.10%0.05%Best
AUM$2.6B$158.1B
Dividend Yield4.82%2.51%
Holdings6248,747
YTD Return-0.93%+14.49%Best
1Y Return+0.20%+21.52%Best
3Y Return (annualized)+6.17%+20.55%Best
5Y Return (annualized)-0.13%+9.57%Best
Volatility (annualized)8.2%Best14.9%
Max Drawdown-23.9%Best-29.4%
$10,000 over 5 years$9,935$15,793Best
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
Style-Large Cap Blend
InceptionJun 22, 2021Jan 26, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Jun 24, 2021 to Sep 21, 2026 (5.2 years).

IBDW 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 5.2 years both funds cover.

IBDW vs VXUS Performance

iShares iBonds Dec 2031 Term Corporate ETF (IBDW) 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 IBDW returned +0.20% while VXUS returned +21.52%. Year to date, IBDW is down 0.93% versus a gain of 14.49% for VXUS.

Over three years, IBDW compounded at +6.17% per year against +20.55% for VXUS; over five years the annualized figures are -0.13% and +9.57% respectively.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 14.9% compared with 8.2% for IBDW. 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 -23.9% for IBDW and -29.4% 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 0.80. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IBDW 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, IBDW currently yields 4.82% against 2.51% for VXUS.

Holdings Overlap

We hold position weights for 421 holdings in IBDW and 8,082 in VXUS, totalling 65.9% and 88.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 421 positions we hold weights for in IBDW and 8,082 in VXUS, against full books of 624 and 8,747.

You are not choosing between two funds in isolation.

Whichever of IBDW and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

IBDWVXUS

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, IBDW or VXUS?

IBDW has an expense ratio of 0.10% while VXUS charges 0.05%. VXUS is the cheaper option, by $5 a year on a $10,000 investment.

Which performed better, IBDW or VXUS?

Over the past year IBDW returned +0.20% vs +21.52% for VXUS, so VXUS leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IBDW or VXUS?

VXUS has been the more volatile fund at 14.9% annualized versus 8.2% for IBDW. Worst drawdown: IBDW -23.9% vs VXUS -29.4%.

Should I hold both IBDW and VXUS?

IBDW and VXUS have a monthly-return correlation of 0.80, 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, IBDW or VXUS?

IBDW yields 4.82% while VXUS yields 2.51%, so IBDW currently pays the higher dividend yield.

Is VXUS better than IBDW?

VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.