USIG vs VXUS
USIG vs VXUS
iShares Broad USD Investment Grade Corporate Bond ETF vs Vanguard Total International Stock ETF
Quick Verdict
USIG has a lower expense ratio. VXUS delivered stronger 1-year returns. USIG offers more diversification with 9966 holdings.
Side-by-Side Comparison
| Metric | USIG | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.04% | 0.05% | |
| AUM | $17.3B | $156.5B | |
| Dividend Yield | 4.72% | 2.60% | |
| Holdings | 11,462 | 8,747 | |
| YTD Return | -0.31% | +14.57% | |
| 1Y Return | +2.15% | +27.82% | |
| 3Y Return (annualized) | +5.19% | +19.27% | |
| 5Y Return (annualized) | +0.23% | +9.28% | |
| Volatility (annualized) | 7.4% | 15.1% | |
| Max Drawdown | -21.6% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jan 5, 2007 | Jan 26, 2011 |
USIG vs VXUS Performance
iShares Broad USD Investment Grade Corporate Bond ETF (USIG) 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 USIG returned +2.15% while VXUS returned +27.82%. Year to date, USIG is down 0.31% versus a gain of 14.57% for VXUS.
Over three years, USIG compounded at +5.19% per year against +19.27% for VXUS; over five years the annualized figures are +0.23% and +9.28% respectively. Across the full 8-year window we track, VXUS has the edge at +4.86% annualized vs +1.83%. 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 7.4% 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 -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 0.71. 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 4.72% against 2.60% for VXUS.
Holdings Overlap
USIG and VXUS share 2 holdings out of 17825 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, USIG or VXUS?
USIG has an expense ratio of 0.04% while VXUS charges 0.05%. USIG is the cheaper option. On a $10,000 investment, that is $1 per year of difference.
Which performed better, USIG or VXUS?
Over the past year USIG returned +2.15% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (8 years), USIG annualized +1.83% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, USIG or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 7.4% for USIG. Worst drawdown: USIG -21.6% vs VXUS -39.9%.
Should I hold both USIG and VXUS?
USIG and VXUS have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between USIG and VXUS?
USIG and VXUS share 2 common holdings with a 0.0% weight overlap. Combined, they hold 17825 unique securities.
Which pays a higher dividend, USIG or VXUS?
USIG yields 4.72% while VXUS yields 2.60%, so USIG currently pays the higher dividend yield.
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