IBHG vs VXUS
iShares iBonds 2027 Term High Yield and Income 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 | IBHG | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.05% | |
| AUM | $506M | $156.5B | |
| Dividend Yield | 6.07% | 2.60% | |
| Holdings | 91 | 8,747 | |
| YTD Return | -1.52% | +14.19% | |
| 1Y Return | +0.00% | +27.38% | |
| 3Y Return (annualized) | +5.78% | +19.53% | |
| 5Y Return (annualized) | +3.01% | +9.03% | |
| Volatility (annualized) | 6.8% | 15.1% | |
| Max Drawdown | -13.8% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 7, 2021 | Jan 26, 2011 |
IBHG vs VXUS Performance
iShares iBonds 2027 Term High Yield and Income ETF (IBHG) 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 IBHG returned +0.00% while VXUS returned +27.38%. Year to date, IBHG is down 1.52% versus a gain of 14.19% for VXUS.
Over three years, IBHG compounded at +5.78% per year against +19.53% for VXUS; over five years the annualized figures are +3.01% and +9.03% respectively. Across the full 5-year window we track, VXUS has the edge at +4.83% annualized vs +2.82%. 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 6.8% for IBHG. 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 -13.8% for IBHG 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 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IBHG charges 0.35% per year while VXUS charges 0.05%. On a $10,000 position that is $35 vs $5 annually, a gap of $30 per year that compounds over a long holding period. On income, IBHG currently yields 6.07% against 2.60% for VXUS.
Holdings Overlap
IBHG and VXUS share 0 holdings out of 7946 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, IBHG or VXUS?
IBHG has an expense ratio of 0.35% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $30 per year of difference.
Which performed better, IBHG or VXUS?
Over the past year IBHG returned +0.00% vs +27.38% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (5 years), IBHG annualized +2.82% vs +4.83% for VXUS. Past performance does not guarantee future results.
Which is riskier, IBHG or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 6.8% for IBHG. Worst drawdown: IBHG -13.8% vs VXUS -39.9%.
Should I hold both IBHG and VXUS?
IBHG and VXUS have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHG and VXUS?
IBHG and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7946 unique securities.
Which pays a higher dividend, IBHG or VXUS?
IBHG yields 6.07% while VXUS yields 2.60%, so IBHG currently pays the higher dividend yield.
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