IIF vs VXUS
Morgan Stanley India Investment Fund Inc. 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 | IIF | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 1.28% | 0.05% | |
| AUM | $318M | $158.1B | |
| Dividend Yield | 7.69% | 2.59% | |
| Holdings | 46 | 8,747 | |
| YTD Return | -7.95% | +15.22% | |
| 1Y Return | -6.72% | +26.86% | |
| 3Y Return (annualized) | +13.03% | +20.34% | |
| 5Y Return (annualized) | +8.27% | +9.38% | |
| Volatility (annualized) | 31.0% | 15.1% | |
| Max Drawdown | -62.1% | -39.9% | |
| Fund Family | Morgan Stanley Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Feb 25, 1994 | Jan 26, 2011 |
IIF vs VXUS Performance
Morgan Stanley India Investment Fund Inc. (IIF) is a ETF from Morgan Stanley Investment Management and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year IIF returned -6.72% while VXUS returned +26.86%. Year to date, IIF is down 7.95% versus a gain of 15.22% for VXUS.
Over three years, IIF compounded at +13.03% per year against +20.34% for VXUS; over five years the annualized figures are +8.27% and +9.38% respectively. Across the full 16-year window we track, IIF has the edge at +17.69% annualized vs +4.89%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IIF has been the more volatile fund, with annualized monthly volatility of 31.0% 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 -62.1% for IIF 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IIF charges 1.28% per year while VXUS charges 0.05%. On a $10,000 position that is $128 vs $5 annually, a gap of $123 per year that compounds over a long holding period. On income, IIF currently yields 7.69% against 2.59% for VXUS.
Holdings Overlap
IIF and VXUS share 33 holdings out of 7882 unique holdings combined, representing a 1.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in IIF | Weight in VXUS | Difference |
|---|---|---|---|
| ICICIBANK:MB | 10.05% | 0.18% | 9.87% |
| HDB:MB | 5.32% | 0.25% | 5.07% |
| AXISBANK:MB | 5.11% | 0.08% | 5.03% |
| 500209:MB | Pro | Pro | Pro |
| MAHM:MB | Pro | Pro | Pro |
| BHARTIHEXA:MB | Pro | Pro | Pro |
| 500112:MB | Pro | Pro | Pro |
| SHRIRAMFIN:MB | Pro | Pro | Pro |
| GRAS:MB | Pro | Pro | Pro |
| CHOLAFIN:MB | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, IIF or VXUS?
IIF has an expense ratio of 1.28% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $123 per year of difference.
Which performed better, IIF or VXUS?
Over the past year IIF returned -6.72% vs +26.86% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), IIF annualized +17.69% vs +4.89% for VXUS. Past performance does not guarantee future results.
Which is riskier, IIF or VXUS?
IIF has been the more volatile fund at 31.0% annualized versus 15.1% for VXUS. Worst drawdown: IIF -62.1% vs VXUS -39.9%.
Should I hold both IIF and VXUS?
IIF and VXUS have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IIF and VXUS?
IIF and VXUS share 33 common holdings with a 1.0% weight overlap. Combined, they hold 7882 unique securities.
Which pays a higher dividend, IIF or VXUS?
IIF yields 7.69% while VXUS yields 2.59%, so IIF currently pays the higher dividend yield.
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