IHY vs VXUS
VanEck International High Yield Bond vs Vanguard Total International Stock ETF
Which is better, IHY or VXUS?
High Yield Bond against Large Cap Blend.
VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IHY | VXUS |
|---|---|---|
| Expense Ratio | 0.40% | 0.05%Best |
| AUM | $43M | $158.1B |
| Dividend Yield | 5.78% | 2.51% |
| Holdings | 524 | 8,747 |
| YTD Return | +1.22% | +14.48%Best |
| 1Y Return | +2.34% | +22.28%Best |
| 3Y Return (annualized) | +8.25% | +20.00%Best |
| 5Y Return (annualized) | +1.79% | +8.91%Best |
| Volatility (annualized) | 8.7%Best | 14.5% |
| Max Drawdown | -32.1%Best | -39.9% |
| $10,000 over 5 years | $10,928 | $15,323Best |
| Fund Family | VanEck | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Blend |
| Inception | Apr 2, 2012 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Apr 3, 2012 to Sep 11, 2026 (14.4 years).
IHY vs VXUS growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 14.4 years both funds cover.
IHY vs VXUS Performance
VanEck International High Yield Bond (IHY) is an ETF from VanEck and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year IHY returned +2.34% while VXUS returned +22.28%. Year to date, IHY is up 1.22% versus a gain of 14.48% for VXUS.
Over three years, IHY compounded at +8.25% per year against +20.00% for VXUS; over five years the annualized figures are +1.79% and +8.91% respectively. Across the full 14-year window we track, VXUS has the edge at +5.81% annualized vs +0.75%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 14.5% compared with 8.7% for IHY. 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 -32.1% for IHY and -39.9% for VXUS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IHY charges 0.40% per year while VXUS charges 0.05%. On a $10,000 position that is $40 vs $5 annually, a gap of $35 per year that compounds over a long holding period. On income, IHY currently yields 5.78% against 2.51% for VXUS.
Holdings Overlap
We hold position weights for 299 holdings in IHY and 8,091 in VXUS, totalling 44.7% and 87.7% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 2 positions appear in both.
2 positions in common, counted across the 299 positions we hold weights for in IHY and 8,091 in VXUS, against full books of 524 and 8,747.
You are not choosing between two funds in isolation.
Whichever of IHY and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IHY or VXUS?
IHY has an expense ratio of 0.40% while VXUS charges 0.05%. VXUS is the cheaper option, by $35 a year on a $10,000 investment.
Which performed better, IHY or VXUS?
Over the past year IHY returned +2.34% vs +22.28% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (14 years), IHY annualized +0.75% vs +5.81% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IHY or VXUS?
VXUS has been the more volatile fund at 14.5% annualized versus 8.7% for IHY. Worst drawdown: IHY -32.1% vs VXUS -39.9%.
Should I hold both IHY and VXUS?
IHY and VXUS have a monthly-return correlation of 0.87, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, IHY or VXUS?
IHY yields 5.78% while VXUS yields 2.51%, so IHY currently pays the higher dividend yield.
Is VXUS better than IHY?
VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.