IVOL vs VXUS
Quadratic Interest Rate Volatility and Inflation Hedge 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 8,747 holdings.
Side-by-Side Comparison
| Metric | IVOL | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.98% | 0.05% | |
| AUM | $288M | $158.1B | |
| Dividend Yield | 4.19% | 2.59% | |
| Holdings | 12 | 8,747 | |
| YTD Return | -6.22% | +15.22% | |
| 1Y Return | -7.43% | +26.86% | |
| 3Y Return (annualized) | -1.86% | +20.34% | |
| 5Y Return (annualized) | -5.58% | +9.38% | |
| Volatility (annualized) | 8.8% | 15.1% | |
| Max Drawdown | -31.2% | -39.9% | |
| Fund Family | Quadratic Capital Management LLC | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 13, 2019 | Jan 26, 2011 |
IVOL vs VXUS Performance
Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL) is a ETF from Quadratic Capital Management LLC and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year IVOL returned -7.43% while VXUS returned +26.86%. Year to date, IVOL is down 6.22% versus a gain of 15.22% for VXUS.
Over three years, IVOL compounded at -1.86% per year against +20.34% for VXUS; over five years the annualized figures are -5.58% and +9.38% respectively. Across the full 7-year window we track, VXUS has the edge at +4.89% annualized vs -2.13%. 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 8.8% for IVOL. 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 -31.2% for IVOL 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 0.20. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IVOL charges 0.98% per year while VXUS charges 0.05%. On a $10,000 position that is $98 vs $5 annually, a gap of $93 per year that compounds over a long holding period. On income, IVOL currently yields 4.19% against 2.59% for VXUS.
Holdings Overlap
IVOL and VXUS share 0 holdings out of 7870 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, IVOL or VXUS?
IVOL has an expense ratio of 0.98% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $93 per year of difference.
Which performed better, IVOL or VXUS?
Over the past year IVOL returned -7.43% vs +26.86% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (7 years), IVOL annualized -2.13% vs +4.89% for VXUS. Past performance does not guarantee future results.
Which is riskier, IVOL or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 8.8% for IVOL. Worst drawdown: IVOL -31.2% vs VXUS -39.9%.
Should I hold both IVOL and VXUS?
IVOL and VXUS have a monthly-return correlation of 0.20, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IVOL and VXUS?
IVOL and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7870 unique securities.
Which pays a higher dividend, IVOL or VXUS?
IVOL yields 4.19% while VXUS yields 2.59%, so IVOL currently pays the higher dividend yield.
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