USIG vs VXUS

USIG vs VXUS

Which is better, USIG or VXUS?

Long Term Mid Quality against Large Cap Blend.

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

Lower Fees: USIGHigher 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

MetricUSIGVXUS
Expense Ratio0.04%Best0.05%
AUM$17.7B$158.1B
Dividend Yield4.84%2.51%
Holdings11,4628,747
YTD Return-1.09%+12.82%Best
1Y Return-0.57%+19.86%Best
3Y Return (annualized)+5.29%+19.33%Best
5Y Return (annualized)-0.16%+9.46%Best
Volatility (annualized)7.3%Best16.1%
Max Drawdown-21.6%Best-35.1%
$10,000 over 5 years$9,920$15,714Best
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
StyleLong Term Mid QualityLarge Cap Blend
InceptionJan 5, 2007Jan 26, 2011

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Aug 1, 2018 to Sep 18, 2026 (8.1 years).

USIG 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 8.1 years both funds cover.

USIG vs VXUS Performance

iShares Broad USD Investment Grade Corporate Bond ETF (USIG) is an ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year USIG returned -0.57% while VXUS returned +19.86%. Year to date, USIG is down 1.09% versus a gain of 12.82% for VXUS.

Over three years, USIG compounded at +5.29% per year against +19.33% for VXUS; over five years the annualized figures are -0.16% and +9.46% respectively. Across the full 8-year window we track, VXUS has the edge at +7.77% annualized vs +1.71%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 16.1% compared with 7.3% for USIG. 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 -21.6% for USIG and -35.1% 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 0.71. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

USIG charges 0.04% per year while VXUS charges 0.05%. On a $10,000 position that is $4 vs $5 annually, a gap of $1 per year that compounds over a long holding period. On income, USIG currently yields 4.84% against 2.51% for VXUS.

Holdings Overlap

We hold position weights for 1,012 holdings in USIG and 8,082 in VXUS, totalling 17.5% and 88.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.

0 positions in common, counted across the 1,012 positions we hold weights for in USIG and 8,082 in VXUS, against full books of 11,462 and 8,747.

You are not choosing between two funds in isolation.

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

USIGVXUS

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, USIG or VXUS?

USIG has an expense ratio of 0.04% while VXUS charges 0.05%. USIG is the cheaper option, by $1 a year on a $10,000 investment.

Which performed better, USIG or VXUS?

Over the past year USIG returned -0.57% vs +19.86% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (8 years), USIG annualized +1.71% vs +7.77% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, USIG or VXUS?

VXUS has been the more volatile fund at 16.1% annualized versus 7.3% for USIG. Worst drawdown: USIG -21.6% vs VXUS -35.1%.

Should I hold both USIG and VXUS?

USIG and VXUS have a monthly-return correlation of 0.71, 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, USIG or VXUS?

USIG yields 4.84% while VXUS yields 2.51%, so USIG currently pays the higher dividend yield.

Is VXUS better than USIG?

USIG 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.