IBII vs VXUS
iShares iBonds Oct 2032 Term TIPS 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 | IBII | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.10% | 0.05% | |
| AUM | $49M | $156.5B | |
| Dividend Yield | 4.07% | 2.60% | |
| Holdings | 5 | 8,747 | |
| YTD Return | +1.14% | +14.57% | |
| 1Y Return | +2.29% | +27.82% | |
| 3Y Return (annualized) | +5.49% | +19.27% | |
| 5Y Return (annualized) | - | +9.28% | |
| Volatility (annualized) | 5.0% | 15.1% | |
| Max Drawdown | -4.7% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Sep 19, 2023 | Jan 26, 2011 |
IBII vs VXUS Performance
iShares iBonds Oct 2032 Term TIPS ETF (IBII) 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 IBII returned +2.29% while VXUS returned +27.82%. Year to date, IBII is up 1.14% versus a gain of 14.57% for VXUS.
Over three years, IBII compounded at +5.49% per year against +19.27% for VXUS. Across the full 3-year window we track, IBII has the edge at +5.49% annualized vs +4.86%. 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 5.0% for IBII. 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 -4.7% for IBII 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 0.66. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IBII 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, IBII currently yields 4.07% against 2.60% for VXUS.
Holdings Overlap
IBII and VXUS share 0 holdings out of 7865 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, IBII or VXUS?
IBII 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, IBII or VXUS?
Over the past year IBII returned +2.29% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (3 years), IBII annualized +5.49% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, IBII or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 5.0% for IBII. Worst drawdown: IBII -4.7% vs VXUS -39.9%.
Should I hold both IBII and VXUS?
IBII and VXUS have a monthly-return correlation of 0.66, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IBII and VXUS?
IBII and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7865 unique securities.
Which pays a higher dividend, IBII or VXUS?
IBII yields 4.07% while VXUS yields 2.60%, so IBII currently pays the higher dividend yield.
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