VXUS vs IXUS: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between VXUS and IXUS

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.

IXUS (iShares Core MSCI Total International Stock ETF) is a international fund managed by BlackRock. IXUS tracks the MSCI ACWI ex USA IMI Index, covering stocks from developed and emerging markets outside the United States across all market capitalizations. With over 4,000 holdings spanning Europe, Asia, Latin America, and beyond, it is a comprehensive one-stop fund for international equity exposure. The low expense ratio makes it one of the most cost-effective ways to diversify beyond U.S. borders.

The most notable differences are in fees (0.07% vs 0.07%), number of holdings (8,537 vs 4,400), and 5-year returns (5.50% vs 6.00%).

Holdings Overlap Analysis

VXUS and IXUS share 82% of their top holdings. This means they are very similar funds — owning both would result in significant duplication in your portfolio. For most beginners, choosing one is sufficient.

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 $0 on a $10,000 investment. The cost difference is negligible — choose based on other factors.

Which One Should a Beginner Choose?

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%.

Choose IXUS if: You want u.s. investors seeking comprehensive international diversification at low cost, three-fund portfolio strategies needing a single international equity allocation, investors who believe international stocks will outperform u.s. markets going forward. It's managed by BlackRock with an expense ratio of 0.07%.

Can You Own Both VXUS and IXUS?

With 82% holdings overlap, owning both means you're essentially doubling down on the same stocks. For beginners, we recommend picking one to keep things simple. If you want more diversification, consider pairing your choice with an international ETF like VXUS or a bond ETF like BND instead.

Frequently Asked Questions