IBDX vs VXUS

Quick Verdict

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

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricIBDXVXUSWinner
Expense Ratio0.10%0.05%
AUM$1.7B$156.5B
Dividend Yield4.82%2.60%
Holdings4248,747
YTD Return-0.08%+14.57%
1Y Return+2.56%+27.82%
3Y Return (annualized)+5.70%+19.27%
5Y Return (annualized)-+9.28%
Volatility (annualized)8.5%15.1%
Max Drawdown-12.5%-39.9%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionJun 28, 2022Jan 26, 2011

IBDX vs VXUS Performance

iShares iBonds Dec 2032 Term Corporate ETF (IBDX) 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 IBDX returned +2.56% while VXUS returned +27.82%. Year to date, IBDX is down 0.08% versus a gain of 14.57% for VXUS.

Over three years, IBDX compounded at +5.70% per year against +19.27% for VXUS. Across the full 4-year window we track, VXUS has the edge at +4.86% annualized vs +4.50%. 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 8.5% for IBDX. 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 -12.5% for IBDX 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IBDX 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, IBDX currently yields 4.82% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

IBDX and VXUS share 0 holdings out of 8251 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, IBDX or VXUS?

IBDX 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, IBDX or VXUS?

Over the past year IBDX returned +2.56% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (4 years), IBDX annualized +4.50% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, IBDX or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 8.5% for IBDX. Worst drawdown: IBDX -12.5% vs VXUS -39.9%.

Should I hold both IBDX and VXUS?

IBDX and VXUS have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IBDX and VXUS?

IBDX and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8251 unique securities.

Which pays a higher dividend, IBDX or VXUS?

IBDX yields 4.82% while VXUS yields 2.60%, so IBDX currently pays the higher dividend yield.

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