IBDW vs VXUS
iShares iBonds Dec 2031 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 | IBDW | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.05% | |
| AUM | $2.5B | $156.5B | |
| Dividend Yield | 4.78% | 2.60% | |
| Holdings | 610 | 8,747 | |
| YTD Return | -0.02% | +14.57% | |
| 1Y Return | +2.52% | +27.82% | |
| 3Y Return (annualized) | +5.87% | +19.27% | |
| 5Y Return (annualized) | +0.18% | +9.28% | |
| Volatility (annualized) | 8.2% | 15.1% | |
| Max Drawdown | -23.9% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 22, 2021 | Jan 26, 2011 |
IBDW vs VXUS Performance
iShares iBonds Dec 2031 Term Corporate ETF (IBDW) 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 IBDW returned +2.52% while VXUS returned +27.82%. Year to date, IBDW is down 0.02% versus a gain of 14.57% for VXUS.
Over three years, IBDW compounded at +5.87% per year against +19.27% for VXUS; over five years the annualized figures are +0.18% and +9.28% respectively. Across the full 5-year window we track, VXUS has the edge at +4.86% annualized vs +0.41%. 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 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 -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 0.80. 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 4.78% against 2.60% for VXUS.
Holdings Overlap
IBDW and VXUS share 0 holdings out of 8292 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, IBDW or VXUS?
IBDW 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, IBDW or VXUS?
Over the past year IBDW returned +2.52% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (5 years), IBDW annualized +0.41% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, IBDW or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 8.2% for IBDW. Worst drawdown: IBDW -23.9% vs VXUS -39.9%.
Should I hold both IBDW and VXUS?
IBDW and VXUS have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBDW and VXUS?
IBDW and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8292 unique securities.
Which pays a higher dividend, IBDW or VXUS?
IBDW yields 4.78% while VXUS yields 2.60%, so IBDW currently pays the higher dividend yield.
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