IEF vs VXUS
IEF vs VXUS
iShares 7-10 Year Treasury Bond 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 7860 holdings.
Side-by-Side Comparison
| Metric | IEF | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.15% | 0.05% | |
| AUM | $47.3B | $156.5B | |
| Dividend Yield | 3.88% | 2.60% | |
| Holdings | 15 | 8,747 | |
| YTD Return | -0.98% | +13.65% | |
| 1Y Return | +0.94% | +28.53% | |
| 3Y Return (annualized) | +3.50% | +18.64% | |
| 5Y Return (annualized) | -1.49% | +9.00% | |
| Volatility (annualized) | 6.6% | 15.1% | |
| Max Drawdown | -23.9% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jul 22, 2002 | Jan 26, 2011 |
IEF vs VXUS Performance
iShares 7-10 Year Treasury Bond ETF (IEF) 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 IEF returned +0.94% while VXUS returned +28.53%. Year to date, IEF is down 0.98% versus a gain of 13.65% for VXUS.
Over three years, IEF compounded at +3.50% per year against +18.64% for VXUS; over five years the annualized figures are -1.49% and +9.00% respectively. Across the full 16-year window we track, VXUS has the edge at +4.81% annualized vs +3.35%. 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 6.6% for IEF. 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 -23.9% for IEF 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 0.07. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IEF charges 0.15% per year while VXUS charges 0.05%. On a $10,000 position that is $15 vs $5 annually, a gap of $10 per year that compounds over a long holding period. On income, IEF currently yields 3.88% against 2.60% for VXUS.
Holdings Overlap
IEF and VXUS share 0 holdings out of 7872 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, IEF or VXUS?
IEF has an expense ratio of 0.15% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, IEF or VXUS?
Over the past year IEF returned +0.94% vs +28.53% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), IEF annualized +3.35% vs +4.81% for VXUS. Past performance does not guarantee future results.
Which is riskier, IEF or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 6.6% for IEF. Worst drawdown: IEF -23.9% vs VXUS -39.9%.
Should I hold both IEF and VXUS?
IEF and VXUS have a monthly-return correlation of 0.07, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IEF and VXUS?
IEF and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7872 unique securities.
Which pays a higher dividend, IEF or VXUS?
IEF yields 3.88% while VXUS yields 2.60%, so IEF currently pays the higher dividend yield.
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