VXUS vs VOO: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between VXUS and VOO

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.

VOO (Vanguard S&P 500 ETF) is a u.s. large-cap blend fund managed by Vanguard. VOO tracks the S&P 500 index, giving you ownership in 500 of the largest U.S. companies in a single investment. It is one of the most popular ETFs in the world thanks to its ultra-low expense ratio and broad market exposure. For beginners, VOO is often recommended as a core portfolio holding because it provides instant diversification across America's leading businesses.

The most notable differences are in fees (0.07% vs 0.03%), number of holdings (8,537 vs 503), and 5-year returns (5.50% vs 15.80%).

Holdings Overlap Analysis

VXUS and VOO 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. VOO saves you more in fees over time.

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 VOO if: You want beginning investors looking for a simple core portfolio holding, long-term buy-and-hold investors seeking broad u.s. market exposure, cost-conscious investors who want minimal fees. It's managed by Vanguard with an expense ratio of 0.03%.

Can You Own Both VXUS and VOO?

Absolutely! With only 0% overlap, VXUS and VOO 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