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VXUS has delivered the next one-year return and yield than VT, however skilled a steeper five-year drawdown.
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Each funds provide broad international diversification, however VT contains U.S. shares whereas VXUS excludes them.
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Expense ratios are almost similar, making value variations negligible for many traders.
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These 10 shares might mint the following wave of millionaires ›
Vanguard Whole World Inventory ETF (NYSEMKT:VT) covers each U.S. and worldwide equities, whereas Vanguard Whole Worldwide Inventory ETF (NASDAQ:VXUS) focuses solely on non-U.S. shares, resulting in notable variations in latest returns, yield, and sector publicity.
Each Vanguard Whole World Inventory ETF (VT) and Vanguard Whole Worldwide Inventory ETF (VXUS) are designed for traders in search of low-cost, broad-market publicity, however their approaches diverge: VT holds shares from all over the world together with the US, whereas VXUS deliberately omits U.S. firms to focus on developed and rising worldwide markets. This comparability highlights how these variations play out in value, efficiency, and portfolio make-up.
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Metric
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VT
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VXUS
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Issuer
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Vanguard
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Vanguard
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Expense ratio
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0.06%
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0.05%
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1-yr return (as of Dec. 16, 2025)
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15.2%
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22.7%
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Dividend yield
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1.7%
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2.7%
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Beta
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1.02
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1.01
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Beta measures value volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents whole return over the trailing 12 months.
VXUS is barely extra reasonably priced than VT with a decrease expense ratio, and it additionally provides the next yield over the previous yr, making it interesting for cost-conscious traders who worth revenue.
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Metric
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VT
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VXUS
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Max drawdown (5 y)
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(26.38%)
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(29.44%)
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Progress of $1,000 over 5 years
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$1,520
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$1,247
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Vanguard Whole Worldwide Inventory ETF (VXUS) delivers publicity to eight,663 worldwide shares. Its prime holdings embody Taiwan Semiconductor Manufacturing (NYSE:TSM), Tencent (OTC:TCEHY), and ASML (NASDAQ:ASML). The fund has a virtually 15-year monitor document and goals to duplicate the efficiency of the FTSE World All Cap ex US Index, offering broad protection of each developed and rising markets outdoors the US.
In distinction, VT spans 9,957 shares throughout each U.S. and worldwide markets. Its largest positions are Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT), reflecting the burden of the U.S. tech sector in international indices. This broader scope means VT captures each home and worldwide fairness developments.
For extra steerage on ETF investing, take a look at the complete information at this hyperlink.
The selection between these two Vanguard ETFs comes down as to whether you need U.S. publicity in your international holdings.
VXUS excludes U.S. shares fully, monitoring worldwide markets throughout developed and rising economies with over 8,700 holdings. It expenses a 0.05% expense ratio and provides a 2.73% dividend yield. This ETF works nicely when you already personal U.S.-focused funds and wish to add worldwide diversification individually.
VT takes a unique strategy by holding all the world, together with U.S. shares. With roughly 62% allotted to home firms and 37% to worldwide markets, it provides one-stop international publicity via almost 10,000 holdings. Its 0.06% expense ratio is sort of similar to VXUS, although its dividend yield is decrease at 1.66%.
Each funds monitor market-cap-weighted indexes and skew towards large-cap firms. Your selection depends upon whether or not you are constructing an entire portfolio from scratch (the place VT shines) or including worldwide publicity to present U.S. holdings (the place VXUS makes extra sense).
ETF: Trade-traded fund; a pooled funding that trades on inventory exchanges like a single inventory.
Expense ratio: The annual payment, as a share of property, {that a} fund expenses to cowl working prices.
Dividend yield: Annual dividends paid by a fund or inventory, expressed as a share of its present value.
Beta: A measure of an funding’s volatility in comparison with the general market, sometimes the S&P 500.
Max drawdown: The most important noticed loss from a fund’s peak worth to its lowest level over a selected interval.
AUM: Belongings underneath administration; the entire market worth of property a fund manages for traders.
Developed markets: Nations with superior economies, steady governments, and established monetary programs.
Rising markets: Nations with rising economies and creating monetary markets, usually riskier however with larger development potential.
Sector publicity: The proportion of a fund’s investments allotted to particular industries or sectors.
Index replication: A fund technique aiming to match the efficiency of a selected market index by holding comparable securities.
Whole return: The funding’s value change plus all dividends and distributions, assuming these payouts are reinvested.
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Sara Appino has positions in Apple, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Idiot has positions in and recommends ASML, Apple, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Tencent, and Vanguard Whole Worldwide Inventory ETF. The Motley Idiot recommends the next choices: lengthy January 2026 $395 calls on Microsoft and quick January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure coverage.
VXUS vs. VT: Go Worldwide-Solely or Embrace U.S. Shares? was initially revealed by The Motley Idiot
