The one-year tax-cost ratio (return reduction because of taxes investors pay on distributions) for VXUS is 0.87%. The index is used for Vanguard Total International Stock Index Fund (VGTSX), Admiral Shares (VTIAX), and Vanguard Total International Stock ETF (VXUS). Year-to-date, VXUS has gained 19.70%, versus a 11.90% rise in the benchmark S&P 500 index during the same period. VXUS is dominated by the financial sector whose securities make up close to 20% of total holdings. In the following section, we’ll discuss the funds’ composition, their market capitalization, and industry exposure.eval(ez_write_tag([[468,60],'mrmarvinallen_com-box-3','ezslot_8',106,'0','0'])); Finally, we’ll compare some risk metrics such as volatility and maximum drawdown as well as both fund’s overall performance and returns. This article is brought to you courtesy of Finstead. Find the best ETF, compare ETF Facts, Performance, Portfolio, Factors, and ESG metrics in one place. This is followed by financial services and healthcare in descending order at around 15% exposure. VT holds little more than 50% US stocks and rest of them with international stocks. EFAV iShares Edge MSCI Min-Vol AEFE tracks a stock market index that is designed to measure the equity market performance of developed markets outside of the US & Canada. - Robert A. Heinlein, Starman Jones. That means the post-tax return will be. What is VXUS risk profile? At $17.5B of net assets VXUS is one of the biggest international ETFs on the market. 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. 13. Re: Why Vanguard Total World instead of VTI and VXUS. is not a registered investment or financial advisor. So for new money, why not VT instead of VXUS and VTI. Investors have the option of manual additions to their existing investments. Copyright © 2020. VXUS is an ETF. On top of that, Vanguard just recently decreased their fee from 0.09% to 0.08%. And those are the outcome. It is a market-capitalization weighted index representing the performance of around 6,100 large-, mid- and small-cap companies in 45+ developed and emerging markets worldwide, excluding the USA. Both funds provide excellent exposure to their target markets at a low annual fee. VXUS is a good fit for long-term investors, for whom money’s growth over a longer period of time is essential. 15. Included are stocks from international stock markets in Europe, North America – namely Canada and Mexico – as well as the Asia-Pacific region. The tool pops out a couple of ETF suggestions (from both the same fund category and overall) that have historically had a higher expense adjusted return and lower volatility (i.e., risk). Should I choose VXUS or VTIAX? In terms of performance, VTI has historically yielded significantly higher returns with a compound annual growth rate of 13.04% than VXUS at 4.72%. Vanguard has been my go-to asset management company since day one. A $10,000 investment in VXUS would have resulted in a final balance of $14.741 today. Get the foreign tax credit and be in complete control of your allocation by geo. The distribution by market cap is as follows: 5. Thanks! To say that VTI outperformed VXUS in the last years is a understatement. On top of that, the U.S. economy strengthened and grown over the past years far more than the average European or Asian economy. MSCI All Country World ex USA Investable Market Index. The biggest question is in deciding between VXUS and SCHF is, what exposure do you seek to have–developed non-US markets, or both developed and emerging? VXUS: 1. VXUS is a much larger fund, with over $500 Billion in assets. Lower turnover equates to lower costs and smaller taxable capital gains distributions, so it is important. VXUS vs. VT? VTIAX might be more convenient for automatic investments and dividend / capital gain re-investments, because it’s a mutual fund. Mid-cap stocks, on the contrary, make up a rather large portion of VXUS’s total market cap at 20%. Obviously. If you continue to use this site we will assume that you are happy with it. The expense ratio for VXUS is 0.11%, which is fairly low. In this article, we’ll look at some of the basic differences between VXUS and VTI such as their expense ratio and holding. The year-end returns for VXUS and VTI from 2012 to 2020 can be seen in the figure above. VTI, on the other hand, is only focused on mirroring the performance of the entire U.S. market. It has the minimum investment requirement of $10,000. The choice is really up to you–VXUS gives you a broader exposure than VEU, and it has a lot more securities than VEU. VEA is developed market etf while VXUS is developed market + Emerging market. 19. All information on this site is for informational and educational purposes only. VXUS has an expense ratio of just 0.08% which is extremely low for any international fund. That means on average, your post-tax return is lower by 0.87% compared to the pre-tax return. The VTI/VXUS combo vs VT penalty is around .09%. Additionally, VXUS is also more diversified than VTI and should therefore theoretically be less volatile. The year-end returns for VXUS and VTI from 2012 to 2020 can be seen in the figure above. VXUS is also less volatile than S&P 500 (its Beta is 0.94). I am on a path toward financial freedom. VXUS and VTIAX have the same expense ratio: 0.04%. 10. VXUS has a higher expense-ratio at 0.08% compared to VTI’s 0.03%. Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed.