IBHL vs VXUS
iShares iBonds 2032 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 | IBHL | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.05% | |
| AUM | $25M | $156.5B | |
| Dividend Yield | 6.30% | 2.60% | |
| Holdings | 208 | 8,747 | |
| YTD Return | -1.62% | +14.57% | |
| 1Y Return | +1.44% | +27.82% | |
| 3Y Return (annualized) | - | +19.27% | |
| 5Y Return (annualized) | - | +9.28% | |
| Volatility (annualized) | 3.5% | 15.1% | |
| Max Drawdown | -3.7% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 25, 2025 | Jan 26, 2011 |
IBHL vs VXUS Performance
iShares iBonds 2032 Term High Yield and Income ETF (IBHL) 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 IBHL returned +1.44% while VXUS returned +27.82%. Year to date, IBHL is down 1.62% versus a gain of 14.57% for VXUS.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 3.5% for IBHL. 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 -3.7% for IBHL 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IBHL 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, IBHL currently yields 6.30% against 2.60% for VXUS.
Holdings Overlap
IBHL and VXUS share 0 holdings out of 8037 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, IBHL or VXUS?
IBHL 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, IBHL or VXUS?
Over the past year IBHL returned +1.44% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (1 years), IBHL annualized +4.45% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, IBHL or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 3.5% for IBHL. Worst drawdown: IBHL -3.7% vs VXUS -39.9%.
Should I hold both IBHL and VXUS?
IBHL and VXUS have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBHL and VXUS?
IBHL and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8037 unique securities.
Which pays a higher dividend, IBHL or VXUS?
IBHL yields 6.30% while VXUS yields 2.60%, so IBHL currently pays the higher dividend yield.
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