IEUS vs VXUS
iShares MSCI Europe Small-Cap 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 8,747 holdings.
Side-by-Side Comparison
| Metric | IEUS | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.41% | 0.05% | |
| AUM | $184M | $158.1B | |
| Dividend Yield | 3.11% | 2.59% | |
| Holdings | 859 | 8,747 | |
| YTD Return | +8.62% | +14.33% | |
| 1Y Return | +12.56% | +25.32% | |
| 3Y Return (annualized) | +15.55% | +20.47% | |
| 5Y Return (annualized) | +3.16% | +9.72% | |
| Volatility (annualized) | 21.1% | 15.1% | |
| Max Drawdown | -63.3% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Nov 12, 2007 | Jan 26, 2011 |
IEUS vs VXUS Performance
iShares MSCI Europe Small-Cap ETF (IEUS) 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 IEUS returned +12.56% while VXUS returned +25.32%. Year to date, IEUS is up 8.62% versus a gain of 14.33% for VXUS.
Over three years, IEUS compounded at +15.55% per year against +20.47% for VXUS; over five years the annualized figures are +3.16% and +9.72% respectively. Across the full 16-year window we track, VXUS has the edge at +4.84% annualized vs +3.23%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IEUS has been the more volatile fund, with annualized monthly volatility of 21.1% compared with 15.1% for VXUS. 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 -63.3% for IEUS 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 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
IEUS charges 0.41% per year while VXUS charges 0.05%. On a $10,000 position that is $41 vs $5 annually, a gap of $36 per year that compounds over a long holding period. On income, IEUS currently yields 3.11% against 2.59% for VXUS.
Holdings Overlap
IEUS and VXUS share 450 holdings out of 8237 unique holdings combined, representing a 2.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IEUS or VXUS?
IEUS has an expense ratio of 0.41% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $36 per year of difference.
Which performed better, IEUS or VXUS?
Over the past year IEUS returned +12.56% vs +25.32% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), IEUS annualized +3.23% vs +4.84% for VXUS. Past performance does not guarantee future results.
Which is riskier, IEUS or VXUS?
IEUS has been the more volatile fund at 21.1% annualized versus 15.1% for VXUS. Worst drawdown: IEUS -63.3% vs VXUS -39.9%.
Should I hold both IEUS and VXUS?
IEUS and VXUS have a monthly-return correlation of 0.92, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between IEUS and VXUS?
IEUS and VXUS share 450 common holdings with a 2.2% weight overlap. Combined, they hold 8237 unique securities.
Which pays a higher dividend, IEUS or VXUS?
IEUS yields 3.11% while VXUS yields 2.59%, so IEUS currently pays the higher dividend yield.
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