IQI vs VXUS

IQI vs VXUS

Which is better, IQI or VXUS?

Municipal Bond against Large Cap Blend.

VXUS has a lower expense ratio. VXUS led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VXUSHigher Returns: VXUS

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

MetricIQIVXUS
Expense Ratio1.71%0.05%Best
AUM$3,048.42$158.1B
Dividend Yield7.77%2.51%
Holdings4858,747
YTD Return+4.18%+14.48%Best
1Y Return+7.27%+22.28%Best
3Y Return (annualized)+10.93%+20.00%Best
5Y Return (annualized)-0.29%+8.91%Best
Volatility (annualized)11.6%Best15.0%
Max Drawdown-38.5%Best-39.9%
$10,000 over 5 years$9,856$15,323Best
Fund FamilyInvesco (US)Vanguard (US)
CategoryTax PreferredEquity
StyleMunicipal BondLarge Cap Blend
InceptionSep 29, 1992Jan 26, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Jan 28, 2011 to Sep 11, 2026 (15.6 years).

IQI 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 15.6 years both funds cover.

IQI vs VXUS Performance

Invesco Quality Municipal Income Trust (IQI) is an ETF from Invesco (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year IQI returned +7.27% while VXUS returned +22.28%. Year to date, IQI is up 4.18% versus a gain of 14.48% for VXUS.

Over three years, IQI compounded at +10.93% per year against +20.00% for VXUS; over five years the annualized figures are -0.29% and +8.91% respectively. Across the full 16-year window we track, VXUS has the edge at +4.82% annualized vs +0.96%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.0% 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 -38.5% for IQI 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 0.45. They move together some of the time, and apart the rest.

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 7.77% against 2.51% for VXUS.

You are not choosing between two funds in isolation.

Whichever of IQI and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

IQIVXUS

Free for up to 10 holdings. No account needed.

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, by $166 a year on a $10,000 investment.

Which performed better, IQI or VXUS?

Over the past year IQI returned +7.27% vs +22.28% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), IQI annualized +0.96% vs +4.82% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, IQI or VXUS?

VXUS has been the more volatile fund at 15.0% annualized versus 11.6% for IQI. Worst drawdown: IQI -38.5% vs VXUS -39.9%.

Should I hold both IQI and VXUS?

IQI and VXUS have a monthly-return correlation of 0.45, 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, IQI or VXUS?

IQI yields 7.77% while VXUS yields 2.51%, so IQI currently pays the higher dividend yield.

Is VXUS better than IQI?

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.