Workflow
Sector Exposure
icon
Search documents
VXUS vs. VT: Go International-Only or Include U.S. Stocks?
The Motley Fool· 2025-12-27 13:28
Core Insights - The Vanguard Total World Stock ETF (VT) includes both U.S. and international equities, while the Vanguard Total International Stock ETF (VXUS) focuses solely on non-U.S. stocks, leading to differences in returns, yield, and sector exposure [1][2]. Cost & Size Comparison - VT has an expense ratio of 0.06% and a 1-year return of 15.2% with a dividend yield of 1.7% [3] - VXUS has a slightly lower expense ratio of 0.05% and a higher 1-year return of 22.7% with a dividend yield of 2.7% [3][4]. Performance & Risk Metrics - Over the past five years, VT experienced a maximum drawdown of 26.38%, while VXUS had a higher drawdown of 29.44% [5]. - An investment of $1,000 in VT would have grown to $1,520, compared to $1,247 for VXUS over the same period [5]. Portfolio Composition - VXUS provides exposure to 8,663 international stocks, with top holdings including Taiwan Semiconductor Manufacturing, Tencent, and ASML [6]. - VT encompasses 9,957 stocks, with major positions in Nvidia, Apple, and Microsoft, reflecting significant U.S. tech sector representation [7][10]. Investment Implications - The choice between VT and VXUS depends on the investor's desire for U.S. exposure in their global holdings, with VT being suitable for comprehensive global exposure and VXUS for adding international diversification to existing U.S. investments [8][11].