STIP vs VXUS
STIP vs VXUS
iShares 0-5 Year TIPS Bond ETF vs Vanguard Total International Stock ETF
Quick Verdict
STIP has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | STIP | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $15.9B | $156.5B | |
| Dividend Yield | 4.32% | 2.60% | |
| Holdings | 27 | 8,747 | |
| YTD Return | +1.15% | +14.57% | |
| 1Y Return | +2.25% | +27.82% | |
| 3Y Return (annualized) | +4.74% | +19.27% | |
| 5Y Return (annualized) | +3.03% | +9.28% | |
| Volatility (annualized) | 2.2% | 15.1% | |
| Max Drawdown | -6.9% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Dec 1, 2010 | Jan 26, 2011 |
STIP vs VXUS Performance
iShares 0-5 Year TIPS Bond ETF (STIP) 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 STIP returned +2.25% while VXUS returned +27.82%. Year to date, STIP is up 1.15% versus a gain of 14.57% for VXUS.
Over three years, STIP compounded at +4.74% per year against +19.27% for VXUS; over five years the annualized figures are +3.03% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs +1.51%. 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 STIP. 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 -6.9% for STIP 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
STIP charges 0.03% per year while VXUS charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, STIP currently yields 4.32% against 2.60% for VXUS.
Holdings Overlap
STIP and VXUS share 0 holdings out of 7885 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, STIP or VXUS?
STIP has an expense ratio of 0.03% while VXUS charges 0.05%. STIP is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, STIP or VXUS?
Over the past year STIP returned +2.25% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), STIP annualized +1.51% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, STIP or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 2.2% for STIP. Worst drawdown: STIP -6.9% vs VXUS -39.9%.
Should I hold both STIP and VXUS?
STIP and VXUS have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between STIP and VXUS?
STIP and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7885 unique securities.
Which pays a higher dividend, STIP or VXUS?
STIP yields 4.32% while VXUS yields 2.60%, so STIP currently pays the higher dividend yield.
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