Vanguard Total World Stock ETF (VT 0.68%) covers both U.S. and international stocks, while Vanguard Total International Stock ETF (VXUS 0.29%) excludes the U.S., resulting in a higher yield but greater recent volatility and a different sector tilt.
Both VT and VXUS aim for broad diversification, but with a key distinction: VT invests across the entire globe, including the U.S., whereas VXUS holds only non-U.S. stocks. For those deciding between the two, differences in cost, recent returns, risk, and portfolio makeup may help clarify which fund aligns better with specific investing goals.
Snapshot (cost & size)
| Metric | VT | VXUS |
|---|---|---|
| Issuer | Vanguard | Vanguard |
| Expense ratio | 0.06% | 0.05% |
| 1-yr return (as of December 19, 2025) | 19.0% | 26.7% |
| Dividend yield | 1.8% | 3.2% |
| Beta | 1.02 | 1.0 |
| AUM | $74.9 billion | $558.2 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
VXUS is slightly more affordable with a lower expense ratio and offers a higher dividend yield, which may appeal to cost-conscious or income-focused investors.
Performance & risk comparison
| Metric | VT | VXUS |
|---|---|---|
| Max drawdown (5 y) | (28.0%) | (32.7%) |
| Growth of $1,000 over 5 years | $1,523 | $1,239 |
What's inside
VXUS seeks to replicate the performance of the FTSE Global All Cap ex US Index, holding 8,663 stocks across developed and emerging non-U.S. markets. The fund’s sector mix leans into financial services (22%), industrials (16%), and technology (15%). Its largest positions include Taiwan Semiconductor Manufacturing (TWSE:2330), Tencent (SEHK:700), and ASML (ASML +0.08%). With a fund age of nearly 15 years, VXUS provides deep international diversification without U.S. exposure.
In contrast, VT invests in both U.S. and foreign companies, with its largest allocation to technology (28%), followed by financial services (16%) and industrials (11%). Its top holdings are NVIDIA (NVDA 3.11%), Apple (AAPL 2.52%), and Microsoft (MSFT 1.91%), offering exposure to some of the world’s largest tech firms. This global approach results in a different sector blend and performance profile than VXUS.
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What this means for investors
The first thing investors should know is that, because these are both Vanguard funds, the fees are generally low, and in this case, they are comparable as well. That said, VXUS stands out as potentially more attractive for a few reasons. First, it carries a slightly lower fee than VT, but it has also performed better over the past twelve months, and its dividend yield is significantly higher.
However, those factors should not be the only thing investors pay attention to, as these ETFs are fundamentally different in their composition. VT carries exposure to the equities from around the world, which includes a 63% exposure to stocks from the United States. This could be an attractive feature for those seeking international exposure, in addition to the opportunity to invest in U.S. stocks.
On the other hand, VXUS is a fund that specifically invests only in markets outside the United States. This fund could be appropriate for those who have a heavy exposure to U.S. equities in other parts of their portfolio and are looking for an easy way to gain diversified exposure to international markets.
Considering these substantial differences, a decision between the two funds should extend beyond performance and dividend yield. Each of these ETFs can serve a specific role in a portfolio and should be considered based on what each investor is trying to accomplish.
Glossary
ETF: Exchange-traded fund; a pooled investment fund that trades on stock exchanges like a single stock.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: Annual dividends paid by a fund or stock, expressed as a percentage of its current price.
Beta: A measure of an investment's volatility compared to the overall market, typically the S&P 500.
AUM: Assets under management; the total market value of assets a fund manages for investors.
Max drawdown: The largest percentage drop from a fund's peak value to its lowest point over a specific period.
Sector exposure: The proportion of a fund's holdings invested in specific industries or sectors.
Passively managed: A fund that aims to replicate the performance of an index rather than actively selecting investments.
Index: A benchmark that tracks the performance of a group of securities, such as stocks or bonds.
Developed markets: Countries with advanced economies and established financial markets, like the US, UK, or Japan.
Emerging markets: Nations with developing economies and less mature financial markets, often offering higher growth potential.
