ISTB vs VXUS
ISTB vs VXUS
iShares Core 1-5 Year USD Bond ETF 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 7861 holdings.
Side-by-Side Comparison
| Metric | ISTB | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.05% | |
| AUM | $5.1B | $156.5B | |
| Dividend Yield | 4.24% | 2.60% | |
| Holdings | 7,038 | 8,747 | |
| YTD Return | +0.59% | +14.57% | |
| 1Y Return | +2.68% | +27.82% | |
| 3Y Return (annualized) | +4.97% | +19.27% | |
| 5Y Return (annualized) | +1.96% | +9.28% | |
| Volatility (annualized) | 2.2% | 15.1% | |
| Max Drawdown | -50.1% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 18, 2012 | Jan 26, 2011 |
ISTB vs VXUS Performance
iShares Core 1-5 Year USD Bond ETF (ISTB) 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 ISTB returned +2.68% while VXUS returned +27.82%. Year to date, ISTB is up 0.59% versus a gain of 14.57% for VXUS.
Over three years, ISTB compounded at +4.97% per year against +19.27% for VXUS; over five years the annualized figures are +1.96% and +9.28% respectively. Across the full 14-year window we track, VXUS has the edge at +4.86% annualized vs +0.94%. 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 2.2% for ISTB. 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 -50.1% for ISTB 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 0.54. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
ISTB charges 0.06% per year while VXUS charges 0.05%. On a $10,000 position that is $6 vs $5 annually, a gap of $1 per year that compounds over a long holding period. On income, ISTB currently yields 4.24% against 2.60% for VXUS.
Holdings Overlap
ISTB and VXUS share 0 holdings out of 10079 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, ISTB or VXUS?
ISTB has an expense ratio of 0.06% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, ISTB or VXUS?
Over the past year ISTB returned +2.68% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (14 years), ISTB annualized +0.94% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, ISTB or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 2.2% for ISTB. Worst drawdown: ISTB -50.1% vs VXUS -39.9%.
Should I hold both ISTB and VXUS?
ISTB and VXUS have a monthly-return correlation of 0.54, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between ISTB and VXUS?
ISTB and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 10079 unique securities.
Which pays a higher dividend, ISTB or VXUS?
ISTB yields 4.24% while VXUS yields 2.60%, so ISTB currently pays the higher dividend yield.
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