IUS vs VXUS
Invesco RAFI Strategic US ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. IUS delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.
Side-by-Side Comparison
| Metric | IUS | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.05% | |
| AUM | $973M | $158.1B | |
| Dividend Yield | 1.25% | 2.59% | |
| Holdings | 541 | 8,747 | |
| YTD Return | +22.55% | +14.56% | |
| 1Y Return | +32.36% | +25.24% | |
| 3Y Return (annualized) | +22.41% | +20.38% | |
| 5Y Return (annualized) | +14.98% | +9.32% | |
| Volatility (annualized) | 16.7% | 15.1% | |
| Max Drawdown | -35.2% | -39.9% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 12, 2018 | Jan 26, 2011 |
IUS vs VXUS Performance
Invesco RAFI Strategic US ETF (IUS) is a ETF from Invesco (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year IUS returned +32.36% while VXUS returned +25.24%. Year to date, IUS is up 22.55% versus a gain of 14.56% for VXUS.
Over three years, IUS compounded at +22.41% per year against +20.38% for VXUS; over five years the annualized figures are +14.98% and +9.32% respectively. Across the full 8-year window we track, IUS has the edge at +15.24% annualized vs +4.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IUS has been the more volatile fund, with annualized monthly volatility of 16.7% 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 -35.2% for IUS 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IUS charges 0.19% per year while VXUS charges 0.05%. On a $10,000 position that is $19 vs $5 annually, a gap of $14 per year that compounds over a long holding period. On income, IUS currently yields 1.25% against 2.59% for VXUS.
Holdings Overlap
IUS and VXUS share 5 holdings out of 8365 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IUS or VXUS?
IUS has an expense ratio of 0.19% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, IUS or VXUS?
Over the past year IUS returned +32.36% vs +25.24% for VXUS, so IUS leads on 1-year performance. Over the longest common window we track (8 years), IUS annualized +15.24% vs +4.84% for VXUS. Past performance does not guarantee future results.
Which is riskier, IUS or VXUS?
IUS has been the more volatile fund at 16.7% annualized versus 15.1% for VXUS. Worst drawdown: IUS -35.2% vs VXUS -39.9%.
Should I hold both IUS and VXUS?
IUS and VXUS have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IUS and VXUS?
IUS and VXUS share 5 common holdings with a 0.1% weight overlap. Combined, they hold 8365 unique securities.
Which pays a higher dividend, IUS or VXUS?
IUS yields 1.25% while VXUS yields 2.59%, so VXUS currently pays the higher dividend yield.
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