MBB vs VXUS
MBB vs VXUS
iShares MBS ETF vs Vanguard Total International Stock ETF
Quick Verdict
MBB has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.
Side-by-Side Comparison
| Metric | MBB | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.05% | |
| AUM | $39.1B | $156.5B | |
| Dividend Yield | 4.26% | 2.60% | |
| Holdings | 11,178 | 8,747 | |
| YTD Return | -0.26% | +11.13% | |
| 1Y Return | +4.17% | +27.13% | |
| 3Y Return (annualized) | +4.35% | +17.24% | |
| 5Y Return (annualized) | +0.06% | +8.71% | |
| Volatility (annualized) | 4.3% | 15.1% | |
| Max Drawdown | -18.4% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Mar 13, 2007 | Jan 26, 2011 |
MBB vs VXUS Performance
iShares MBS ETF (MBB) 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 MBB returned +4.17% while VXUS returned +27.13%. Year to date, MBB is down 0.26% versus a gain of 11.13% for VXUS.
Over three years, MBB compounded at +4.35% per year against +17.24% for VXUS; over five years the annualized figures are +0.06% and +8.71% respectively. Across the full 16-year window we track, VXUS has the edge at +4.66% annualized vs +0.45%. 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 4.3% for MBB. 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 -18.4% for MBB 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 0.38. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MBB 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, MBB currently yields 4.26% against 2.60% for VXUS.
Holdings Overlap
MBB and VXUS share 0 holdings out of 10199 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, MBB or VXUS?
MBB has an expense ratio of 0.04% while VXUS charges 0.05%. MBB is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, MBB or VXUS?
Over the past year MBB returned +4.17% vs +27.13% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), MBB annualized +0.45% vs +4.66% for VXUS. Past performance does not guarantee future results.
Which is riskier, MBB or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 4.3% for MBB. Worst drawdown: MBB -18.4% vs VXUS -39.9%.
Should I hold both MBB and VXUS?
MBB and VXUS have a monthly-return correlation of 0.38, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MBB and VXUS?
MBB and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 10199 unique securities.
Which pays a higher dividend, MBB or VXUS?
MBB yields 4.26% while VXUS yields 2.60%, so MBB currently pays the higher dividend yield.
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