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VXUS offers a higher dividend yield and a slightly lower expense ratio than VT.
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VT includes U.S. stocks while VXUS focuses strictly on international stocks, resulting in different sector exposures and major holdings.
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Both funds are highly liquid and passively managed, but VT has generated higher five-year growth and shallower drawdowns.
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Vanguard Total Global Equity ETF (NYSEMKT:VT) covers both US and international stocks, while Vanguard Total International Equity ETF (NASDAQ:VXUS) excludes the United States, which results in a higher yield but greater recent volatility and a different sector orientation.
Both VT and VXUS aim for broad diversification, but with one key distinction: VT invests worldwide, including in the United States, while VXUS only holds non-U.S. stocks. For those choosing between the two, differences in cost, recent returns, risk and portfolio composition can help clarify which fund best fits specific investment goals.
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Metric
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Vermont
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VXUS
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Issuer
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Avant-garde
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Avant-garde
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|
Spending rate
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0.06%
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0.05%
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Return over 1 year (as of December 19, 2025)
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19.0%
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26.7%
|
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Dividend yield
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1.8%
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3.2%
|
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Beta
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1.02
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1.0
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Assets under management
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$74.9 billion
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$558.2 billion
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Beta measures price volatility relative to the S&P 500; beta is calculated using weekly returns over five years. The 1-year return represents the total return over the last 12 months.
VXUS is slightly more affordable with a lower expense ratio and offers a higher dividend yield, which may appeal to cost-conscious or income-focused investors.
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Metric
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Vermont
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VXUS
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|
Maximum mintage (5 years)
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(28.0%)
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(32.7%)
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Growth of $1,000 over 5 years
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$1,523
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$1,239
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VXUS seeks to replicate the performance of the FTSE Global All Cap ex US Index, holding 8,663 stocks across non-US developed and emerging markets. The fund’s sector allocation focuses on financial services (22%), industrials (16%) and technology (15%). Its most important positions include Semiconductor manufacturing in Taiwan (TWSE: 2330), Tencent (SEHK: 700)And ASML (ENXTAM: ASML). With a fund almost 15 years old, VXUS offers deep international diversification without exposure to the United States.
In contrast, VT invests in U.S. and foreign companies, with its largest allocation in technology (28%), followed by financial services (16%) and industrials (11%). Its main titles are Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL)And Microsoft (NASDAQ:MSFT)providing exposure to some of the largest technology companies in the world. This global approach results in a sector composition and performance profile different from that of VXUS.
For more advice on investing in ETFs, check out the full guide at this link.
The first thing investors should know is that because they are both Vanguard funds, the fees are generally low, and in this case they are also comparable. That said, VXUS is potentially more attractive for several reasons. First, its fees are slightly lower than VT’s, but its performance has also been better over the last twelve months and its dividend yield is significantly higher.
However, these factors should not be the only ones investors pay attention to, as the composition of these ETFs is fundamentally different. VT has exposure to stocks around the world, which includes 63% exposure to US stocks. This could be an attractive feature for those looking for international exposure, in addition to the ability to invest in U.S. stocks.
On the other hand, VXUS is a fund that specifically invests only in markets outside the United States. This fund might be suitable for those who have heavy exposure to US stocks in other parts of their portfolio and are looking for a simple way to get diversified exposure to international markets.
Given these substantial differences, the choice between the two funds should go beyond performance and dividend yield. Each of these ETFs can play a specific role in a portfolio and should be considered based on what each investor is trying to accomplish.
ETFs: Exchange-traded fund; a pooled investment fund that trades on a stock exchange as a single stock.
Expense rate: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: Annual dividends paid by a fund or stock, expressed as a percentage of its current price.
Beta: A measure of how volatile an investment is relative to the broader market, usually the S&P 500.
Assets under management: Assets under management; the total market value of the assets that a fund manages for investors.
Maximum print run: The largest percentage decline from a fund’s peak value to its lowest point over a specific period.
Sector exposure: The proportion of a fund’s holdings invested in specific industries or sectors.
Passively managed: A fund that aims to track the performance of an index rather than actively selecting investments.
Hint: A benchmark index that tracks the performance of a group of securities, such as stocks or bonds.
Developed markets: Countries with advanced economies and established financial markets, such as the United States, United Kingdom or Japan.
Emerging markets: Countries with developing economies and less mature financial markets, often offering higher growth potential.
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Jeff Santoro holds positions at ASML, Apple, Microsoft and Nvidia. The Motley Fool holds positions in and recommends ASML, Apple, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, Tencent, and Vanguard Total International Stock ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
VXUS vs. VT: Global Exposure with Major Differences was originally published by The Motley Fool
