Generated June 2026 from current fund data.
Overview
VT and VTI are both Vanguard equity index ETFs, but they track fundamentally different markets. VTI focuses exclusively on U.S. equities through the CRSP US Total Market Index, while VT offers global diversification across developed and emerging markets via the FTSE Global All Cap Index. The choice between them hinges on whether you want U.S.-only exposure or international diversification.
How they differ
The biggest difference is geographic scope: VTI holds only U.S. stocks, while VT includes roughly 40–45% international exposure across developed and emerging markets. VTI's yield is lower at 1.10% versus VT's 1.45%, reflecting the higher dividend payout typical of non-U.S. markets and a different sector mix—VT carries more exposure to dividend-heavy sectors like energy and financials outside the U.S. VTI is vastly larger at $654B in AUM compared to VT's $74.1B, and its expense ratio is half VT's at 0.03% versus 0.07%. Both pay dividends quarterly, but VTI's scale and lower cost give it an advantage in minimizing drag over long holding periods.
Who each is best for
VTI: Investors seeking broad U.S. market exposure who already hold international equities separately or have no appetite for foreign currency and geopolitical risk. Fits portfolios built around a core U.S. equity foundation with room for international satellites.
VT: Investors who want single-ticket global equity exposure without managing separate U.S. and international sleeves. Designed for those who view the world as one market and prefer emerging-market diversification built in, accepting both currency and foreign political risk as tradeoffs.
Key risks to know
- Currency risk in VT: About 40% of VT's holdings are denominated in foreign currencies. Currency fluctuations can amplify or dampen returns independent of underlying stock performance, creating volatility that VTI avoids entirely.
- Developed-market concentration in VT: Despite the "global" label, VT remains heavily weighted to developed markets (Japan, UK, Canada, Australia). Emerging-market exposure is real but modest, so geopolitical shocks to EM don't meaningfully hurt the fund, but it also limits EM upside capture.
- U.S. equity concentration in VTI: VTI's $654B AUM and 100% U.S. focus mean it tracks the health of the American economy and corporate sector precisely. A prolonged U.S. market downturn affects the entire fund; there's no geographic diversification hedge.
- Sector bias differences: VTI tilts more heavily toward technology due to the U.S. market's composition, while VT has higher exposure to value sectors and dividend payers globally, creating different drawdown profiles in rate-sensitive or value-down markets.
Bottom line
If you want maximum diversification across continents and don't mind currency risk, VT offers one-fund global access at a reasonable cost. If you prefer staying within the U.S. market or plan to complement a U.S. core with a separate international fund, VTI's lower fees and deeper liquidity merit consideration. Neither fund is inherently superior—the fit depends on your desired geographic allocation and whether you're building a global or U.S.-centric portfolio. Past performance doesn't predict future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
