IHY vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricIHYVXUSWinner
Expense Ratio0.40%0.05%
AUM$43M$156.5B
Dividend Yield5.68%2.60%
Holdings5918,747
YTD Return+1.18%+11.13%
1Y Return+4.78%+27.13%
3Y Return (annualized)+8.06%+17.24%
5Y Return (annualized)+1.87%+8.71%
Volatility (annualized)8.7%15.1%
Max Drawdown-32.1%-39.9%
Fund FamilyVanEckVanguard (US)
CategoryFixed IncomeEquity
InceptionApr 2, 2012Jan 26, 2011

IHY vs VXUS Performance

VanEck International High Yield Bond (IHY) is a ETF from VanEck and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year IHY returned +4.78% while VXUS returned +27.13%. Year to date, IHY is up 1.18% versus a gain of 11.13% for VXUS.

Over three years, IHY compounded at +8.06% per year against +17.24% for VXUS; over five years the annualized figures are +1.87% and +8.71% respectively. Across the full 14-year window we track, VXUS has the edge at +4.66% annualized vs +0.76%. 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 8.7% for IHY. 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 -32.1% for IHY 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 0.87. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

IHY charges 0.40% per year while VXUS charges 0.05%. On a $10,000 position that is $40 vs $5 annually, a gap of $35 per year that compounds over a long holding period. On income, IHY currently yields 5.68% against 2.60% for VXUS.

Holdings Overlap

0.1%overlap

IHY and VXUS share 5 holdings out of 8167 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in IHYWeight in VXUSDifference
ORSTED:CO0.23%0.02%0.21%
ORBIA:MX0.16%0.00%0.16%
ALA:CA0.04%0.02%0.02%
MIN:AUProProPro
TA:CAProProPro
See all 5 holdings IHY shares with VXUS
Exact weights in each fund and the difference, for every overlapping position.
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Frequently Asked Questions

Which is cheaper, IHY or VXUS?

IHY has an expense ratio of 0.40% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $35 per year of difference.

Which performed better, IHY or VXUS?

Over the past year IHY returned +4.78% vs +27.13% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (14 years), IHY annualized +0.76% vs +4.66% for VXUS. Past performance does not guarantee future results.

Which is riskier, IHY or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 8.7% for IHY. Worst drawdown: IHY -32.1% vs VXUS -39.9%.

Should I hold both IHY and VXUS?

IHY and VXUS have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IHY and VXUS?

IHY and VXUS share 5 common holdings with a 0.1% weight overlap. Combined, they hold 8167 unique securities.

Which pays a higher dividend, IHY or VXUS?

IHY yields 5.68% while VXUS yields 2.60%, so IHY currently pays the higher dividend yield.

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