All the other year VTI provided higher year-end returns (or lower losses). Unfortunately, since both funds are rather young, we don’t have that much historical data available.eval(ez_write_tag([[336,280],'mrmarvinallen_com-large-mobile-banner-2','ezslot_9',113,'0','0'])); But from the data we have the differences are quite visible. VEU tax-cost ratio is 0.86% vs. VXUS 0.87%. A $10,000 investment in VXUS would have resulted in a final balance of $14.741 today. It has to be right for you, given your investment goals. The historical returns of the two ETFs are comparable, although SCHF did slightly better over the last 5 years (9.52% for SCHF vs. 8.78% for VXUS). Should I choose VXUS or VT? The remaining allocations are distributed between the Middle East, North America, and the rest of the world. Does VXUS give investors exposure to the US market? The above graph visualizes the rather large difference in drawdowns between VXUS and VTI.

As with every investment, the most significant metrics are likely to be the performance of the asset over time. 20. VEA also has a Beta of 0.91, which means it’s 9% less volatile than S&P 500. VT and VXUS have the same expense ratio: 0.11% .

Depends on personal preference. The choice should depend on your focus… if you’d like exposure to the global market, including the US, go with VT. This is followed by financial services and healthcare in descending order at around 15% exposure. VGTSX is a mutual fund tracking the FTSE All Cap ex US Index. Here I’ve back-tested a hypothetical portfolio of $10,000 allocated 100 percent to VXUS vs. one allocated 100 percent to VTI for the final part of this comparison. Sic transit gloria mundi. Otherwise focus on VXUS. However, one big difference is that tech companies make up more than 20% in the U.S. market while they just merely pass 10% internationally. What is VXUS tax efficiency? But, if you invest in VXUS on Vanguard, you will be able to automatically reinvest dividends and capital gains. As we have seen, the main difference between VXUS and VTI is their target market. Thank you. In times of economic decline, this difference is accentuated even more. FTSE Global All Cap ex US Index provides coverage of 98% of the international stock market capitalization. However, it only holds 2,904 stocks total, which is nearly 2/3rds less than a VTI/VXUS combo. That means it’s focused on developed countries, and individual companies in the fund are market-cap weighted. Press J to jump to the feed. But which of these ETFs is actually better? The headquarters of VXUS holdings are based outside the US. VXUS vs. VT? It currently ranks number one in total stock market ETFs with almost $150B under management. The fund itself simply has fewer fees. This equals to a CAGR of 13.04%. The number of stocks in the VT fund is ~7,800 vs. 6,100 for VXUS. VT holds little more than 50% US stocks and rest of them with international stocks. The least represented sector by market cap is basic materials, energy, and utilities. The prudent investor may want to look at the monthly and annual volatility and maximum drawdowns the fund has experienced during its lifetime when assessing any fund’s difference and benefits and downsides. 17. This equates to a compound annual growth rate (CAGR) of 4.72%. SCHF expense ratio is slightly below VXUS expense ratio: 0.06% vs. 0.11%. In this article, we’ll look at some of the basic differences between VXUS and VTI such as their expense ratio and holding. VXUS is a much larger fund, with over $500 Billion in assets. That means the post-tax return will be. The Vanguard Total Stock Market ETF (VTI) tracks the CRSP US Total Market Index. VXUS may have higher liquidity than VT, but we think VT is fairly liquid as well. The Vanguard Total International Stock ETF (NASDAQ:VXUS) was unchanged in premarket trading Tuesday. Performance wise, they are similar. The number of stocks in the VT fund is ~7,800 vs. 6,100 for VXUS. Generally, we see higher-yielding investments also be more volatile. Top. I am on a path toward financial freedom. To see all exchange delays and terms of use, please see disclaimer. Especially in the past-economic-boom years of 2015-2017 the difference in drawdowns is enormous.

VXUS vs. VEA?

Which do you prefer? All information on this site is for informational and educational purposes only. Please discuss all financial and investment decisions with a registered investment advisor (RIA).

But, the particular amount of shares is usually based on the current share price. As is the entire U.S. stock market, VTI is made up of over three-quarters of large-cap stocks. VXUS cost ratio is 0.87%. VGTSX is more expensive; its expense ratio is 0.18% vs. 0.11% for VXUS. So what is the difference between the two then? Also, we have no idea what the future will look like for VXUS (or international markets)–and whether international stocks are overvalued at this point. Real estate actually makes up a healthy 5% of total exposure (REITs included).eval(ez_write_tag([[300,250],'mrmarvinallen_com-large-leaderboard-2','ezslot_13',111,'0','0'])); VXUS’ exposure is quite similar to that of the domestic U.S. market. VT is more tax-efficient than VXUS. mrmarvinallen.com is not a registered investment or financial advisor. Vanguard VXUS is an ETF that tracks the performance of a benchmark index that measures the investment return of stocks issued by companies located in international markets, outside the US. What is VXUS tax-cost ratio? Unfortunately, since both funds are rather young, we don’t have that much historical data available.

Tags: Finstead foreign NASDAQ:VXUS NASDAQ:VXUS Vanguard Total International Stock ETF(NASDAQ:VXUS). To say that VTI outperformed VXUS in the last years is a understatement. By using VTI and VXUS, you can allocate according to your risk preference. VTIAX is an Admiral Shares version of the mutual fund tracking the FSTE All Cap ex US index. We've ranked dozens of ETF categories based on relative performance. A low fee and a reasonably representative portfolio make the fund well-positioned to do well in the future. VT invests in both foreign and US stocks. Should I choose VXUS or VTIAX? Vanguard Total International Stock Index Fund (VGTSX), Vanguard Total International Stock ETF (VXUS), VEU tax-cost ratio is 0.86% vs. VXUS 0.87%, Vanguard Total International Stock ETF(NASDAQ:VXUS), Are Covered Call ETFs Worth The Risks? VXUS vs. SCHF? Thanks! Index funds such as VXUS are ideal for individual investors wanting to get a broad exposure to international markets, including both developed and emerging.

VT holds little more than 50% US stocks and rest of them with international stocks. Offers diversified exposure to non-US large-, medium- and small-cap stocks, in developed and emerging countries; 2. The remaining three-quarters are naturally filled by international large-cap securities. Thanks to their tax efficiency, these two Vanguard funds regularly outperform competitor ETFs with similar aims. The choice is really up to you–VXUS gives you a broader exposure than VEU, and it has a lot more securities than VEU. 0.22 percentage points higher on average for VXUS vs. SCHF.

VXUS annual turnover is 3%, which is pretty low. But the critics would say that tech stocks are overvalued at this point. From Proj Omni: Vanguard Total Stock Market ETF (ETF:VXUS) offers investors diversified exposure to non-US companies (in developed and emerging markets) and is based on the FTSE Global All Cap ex US Index. Has historically done well. Additionally, VXUS is also more diversified than VTI and should therefore theoretically be less volatile. For us as investors one question, however, remains: how much – if any – of our funds should be allocate to VXUS?

A word of caution–a triple green doesn’t mean you should invest in the fund now. A $10,000 investment in VTI would have resulted in a final balance of $28,063 today. Don’t get FTC with VT (I’m 100% VT currently). VT tax-cost ratio is 0.66%. VEU is based on the FTSE All World ex US index, while VXUS is based on FSTE All Cap ex US index. What’s the difference between VXUS and VTI? Since VT does not hold more than 50% of international equities, they have tax problem. Vanguard has been my go-to asset management company since day one.

9. 13. And does the turnover really matter? On top of that, Vanguard just recently decreased their fee from 0.09% to 0.08%. In the past decade, there have been only a couple of years where VXUS actually outperformed VTI, notably in 2012 and 2017. VEA has approximately 3,700 common stocks of large-, mid-, and small-cap companies located in the major markets of Europe, Asia-Pacific and Canada. We use cookies to ensure that we give you the best experience on our website. The one-year tax-cost ratio (return reduction because of taxes investors pay on distributions) for VXUS is 0.87%. Top.

Mid-cap companies cannot break through the 20% mark and small-cap stocks only make up a meager 6-7%. The index is used for Vanguard Total International Stock Index Fund (VGTSX), Admiral Shares (VTIAX), and Vanguard Total International Stock ETF (VXUS). VXUS features many of the same hallmarks that made VTI a resounding success, notably cheap, liquid, broad-based equity exposure. This is more or less closely followed by Industrials, Healthcare and Consumer Cyclical industries.eval(ez_write_tag([[250,250],'mrmarvinallen_com-banner-1','ezslot_12',110,'0','0'])); On the low end of the spectrum we’ve got Utilities, Real Estate and Energy.