IGIB vs VXUS
IGIB vs VXUS
iShares 5-10 Year Investment Grade Corporate Bond ETF vs Vanguard Total International Stock ETF
Quick Verdict
IGIB has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | IGIB | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.05% | |
| AUM | $18.6B | $156.5B | |
| Dividend Yield | 4.80% | 2.60% | |
| Holdings | 2,986 | 8,747 | |
| YTD Return | -0.37% | +14.57% | |
| 1Y Return | +2.44% | +27.82% | |
| 3Y Return (annualized) | +5.98% | +19.27% | |
| 5Y Return (annualized) | +1.00% | +9.28% | |
| Volatility (annualized) | 5.7% | 15.1% | |
| Max Drawdown | -20.6% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 5, 2007 | Jan 26, 2011 |
IGIB vs VXUS Performance
iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB) 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 IGIB returned +2.44% while VXUS returned +27.82%. Year to date, IGIB is down 0.37% versus a gain of 14.57% for VXUS.
Over three years, IGIB compounded at +5.98% per year against +19.27% for VXUS; over five years the annualized figures are +1.00% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs +1.28%. 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 5.7% for IGIB. 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 -20.6% for IGIB 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 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IGIB charges 0.04% per year while VXUS charges 0.05%. On a $10,000 position that is $4 vs $5 annually, a gap of $1 per year that compounds over a long holding period. On income, IGIB currently yields 4.80% against 2.60% for VXUS.
Holdings Overlap
IGIB and VXUS share 0 holdings out of 7875 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, IGIB or VXUS?
IGIB has an expense ratio of 0.04% while VXUS charges 0.05%. IGIB is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, IGIB or VXUS?
Over the past year IGIB returned +2.44% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), IGIB annualized +1.28% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, IGIB or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 5.7% for IGIB. Worst drawdown: IGIB -20.6% vs VXUS -39.9%.
Should I hold both IGIB and VXUS?
IGIB and VXUS have a monthly-return correlation of 0.61, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IGIB and VXUS?
IGIB and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7875 unique securities.
Which pays a higher dividend, IGIB or VXUS?
IGIB yields 4.80% while VXUS yields 2.60%, so IGIB currently pays the higher dividend yield.
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