ICLO vs VXUS
Invesco AAA CLO Floating Rate Note 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 | ICLO | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.05% | |
| AUM | $525M | $156.5B | |
| Dividend Yield | 5.02% | 2.60% | |
| Holdings | 343 | 8,747 | |
| YTD Return | +0.18% | +14.57% | |
| 1Y Return | +1.83% | +27.82% | |
| 3Y Return (annualized) | +5.21% | +19.27% | |
| 5Y Return (annualized) | - | +9.28% | |
| Volatility (annualized) | 1.3% | 15.1% | |
| Max Drawdown | -3.5% | -39.9% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 9, 2022 | Jan 26, 2011 |
ICLO vs VXUS Performance
Invesco AAA CLO Floating Rate Note ETF (ICLO) is a ETF from Invesco (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year ICLO returned +1.83% while VXUS returned +27.82%. Year to date, ICLO is up 0.18% versus a gain of 14.57% for VXUS.
Over three years, ICLO compounded at +5.21% per year against +19.27% for VXUS. Across the full 4-year window we track, ICLO has the edge at +5.84% 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 1.3% for ICLO. 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 -3.5% for ICLO 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 0.24. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ICLO charges 0.19% per year while VXUS charges 0.05%. On a $10,000 position that is $19 vs $5 annually, a gap of $14 per year that compounds over a long holding period. On income, ICLO currently yields 5.02% against 2.60% for VXUS.
Holdings Overlap
ICLO and VXUS share 0 holdings out of 7881 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, ICLO or VXUS?
ICLO has an expense ratio of 0.19% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, ICLO or VXUS?
Over the past year ICLO returned +1.83% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (4 years), ICLO annualized +5.84% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, ICLO or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 1.3% for ICLO. Worst drawdown: ICLO -3.5% vs VXUS -39.9%.
Should I hold both ICLO and VXUS?
ICLO and VXUS have a monthly-return correlation of 0.24, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ICLO and VXUS?
ICLO and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7881 unique securities.
Which pays a higher dividend, ICLO or VXUS?
ICLO yields 5.02% while VXUS yields 2.60%, so ICLO currently pays the higher dividend yield.
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