VBF vs VXUS
VBF vs VXUS
Invesco Bond Fund 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 | VBF | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.54% | 0.05% | |
| AUM | $4,400.74 | $156.5B | |
| Dividend Yield | 5.07% | 2.60% | |
| Holdings | 1,492 | 8,747 | |
| YTD Return | -1.13% | +14.57% | |
| 1Y Return | +0.15% | +27.82% | |
| 3Y Return (annualized) | +5.16% | +19.27% | |
| 5Y Return (annualized) | -1.89% | +9.28% | |
| Volatility (annualized) | 10.5% | 15.1% | |
| Max Drawdown | -41.6% | -39.9% | |
| Fund Family | Invesco (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 28, 1970 | Jan 26, 2011 |
VBF vs VXUS Performance
Invesco Bond Fund (VBF) is a ETF from Invesco (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VBF returned +0.15% while VXUS returned +27.82%. Year to date, VBF is down 1.13% versus a gain of 14.57% for VXUS.
Over three years, VBF compounded at +5.16% per year against +19.27% for VXUS; over five years the annualized figures are -1.89% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs -0.06%. 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 10.5% for VBF. 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 -41.6% for VBF 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 0.47. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VBF charges 0.54% per year while VXUS charges 0.05%. On a $10,000 position that is $54 vs $5 annually, a gap of $49 per year that compounds over a long holding period. On income, VBF currently yields 5.07% against 2.60% for VXUS.
Holdings Overlap
VBF and VXUS share 0 holdings out of 8878 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, VBF or VXUS?
VBF has an expense ratio of 0.54% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $49 per year of difference.
Which performed better, VBF or VXUS?
Over the past year VBF returned +0.15% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VBF annualized -0.06% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, VBF or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 10.5% for VBF. Worst drawdown: VBF -41.6% vs VXUS -39.9%.
Should I hold both VBF and VXUS?
VBF and VXUS have a monthly-return correlation of 0.47, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBF and VXUS?
VBF and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 8878 unique securities.
Which pays a higher dividend, VBF or VXUS?
VBF yields 5.07% while VXUS yields 2.60%, so VBF currently pays the higher dividend yield.
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