VTI vs VXUS: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between VTI and VXUS

VTI (Vanguard Total Stock Market ETF) is a u.s. total market fund managed by Vanguard. VTI gives you exposure to the entire U.S. stock market in one fund, covering large-cap, mid-cap, and small-cap companies. With over 3,600 holdings, it is one of the most diversified U.S. equity ETFs you can buy. Beginners often choose VTI over S&P 500 funds because it includes smaller companies that have historically provided additional growth potential.

VXUS (Vanguard Total International Stock ETF) is a international equity fund managed by Vanguard. VXUS provides exposure to stocks from developed and emerging markets outside the United States, covering over 8,000 companies across Europe, Asia, and the rest of the world. It is the most popular way to add international diversification to a U.S.-focused portfolio. Beginners building a globally diversified portfolio often pair VXUS with VTI to own virtually every publicly traded stock in the world.

The most notable differences are in fees (0.03% vs 0.07%), number of holdings (3,644 vs 8,537), and 5-year returns (15.20% vs 5.50%).

Holdings Overlap Analysis

VTI and VXUS share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.

Cost Comparison Over Time

If you invest $10,000 and hold for 20 years (assuming 8% annual returns):

Over 20 years, the fee difference amounts to $342 on a $10,000 investment. VTI saves you more in fees over time.

Which One Should a Beginner Choose?

Choose VTI if: You want investors who want complete u.s. stock market coverage in a single fund, beginners building a simple two-fund or three-fund portfolio, long-term investors who want small-cap exposure alongside large-caps. It's managed by Vanguard with an expense ratio of 0.03%.

Choose VXUS if: You want investors seeking global diversification beyond the u.s. market, those building a complete world stock portfolio when paired with vti, investors who believe international stocks are undervalued relative to u.s. equities. It's managed by Vanguard with an expense ratio of 0.07%.

Can You Own Both VTI and VXUS?

Absolutely! With only 0% overlap, VTI and VXUS complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.

Frequently Asked Questions