IQI vs VXUS
Invesco Quality Municipal Income Trust 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 | IQI | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 1.71% | 0.05% | |
| AUM | $3,048.42 | $158.1B | |
| Dividend Yield | 7.66% | 2.59% | |
| Holdings | 485 | 8,747 | |
| YTD Return | +5.96% | +14.26% | |
| 1Y Return | +15.40% | +25.40% | |
| 3Y Return (annualized) | +10.70% | +20.47% | |
| 5Y Return (annualized) | -0.26% | +9.76% | |
| Volatility (annualized) | 11.6% | 15.1% | |
| Max Drawdown | -57.6% | -39.9% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Sep 29, 1992 | Jan 26, 2011 |
IQI vs VXUS Performance
Invesco Quality Municipal Income Trust (IQI) is a ETF from Invesco (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year IQI returned +15.40% while VXUS returned +25.40%. Year to date, IQI is up 5.96% versus a gain of 14.26% for VXUS.
Over three years, IQI compounded at +10.70% per year against +20.47% for VXUS; over five years the annualized figures are -0.26% and +9.76% respectively. Across the full 16-year window we track, VXUS has the edge at +4.83% annualized vs +0.00%. 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 11.6% for IQI. 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 -57.6% for IQI 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 0.45. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IQI charges 1.71% per year while VXUS charges 0.05%. On a $10,000 position that is $171 vs $5 annually, a gap of $166 per year that compounds over a long holding period. On income, IQI currently yields 7.66% against 2.59% for VXUS.
Holdings Overlap
IQI and VXUS share 0 holdings out of 8114 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, IQI or VXUS?
IQI has an expense ratio of 1.71% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $166 per year of difference.
Which performed better, IQI or VXUS?
Over the past year IQI returned +15.40% vs +25.40% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), IQI annualized +0.00% vs +4.83% for VXUS. Past performance does not guarantee future results.
Which is riskier, IQI or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 11.6% for IQI. Worst drawdown: IQI -57.6% vs VXUS -39.9%.
Should I hold both IQI and VXUS?
IQI and VXUS have a monthly-return correlation of 0.45, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IQI and VXUS?
IQI and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8114 unique securities.
Which pays a higher dividend, IQI or VXUS?
IQI yields 7.66% while VXUS yields 2.59%, so IQI currently pays the higher dividend yield.
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