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ETF Comparison

VT vs VXUS: Which Is the Better Pick in 2026?

A head-to-head comparison of Vanguard Total World Stock ETF and Vanguard Total International Stock ETF covering yield, cost, risk, and income potential.

Data updated July 21, 2026

Vanguard
ETFs116
Total AUM$4488B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on VT and VXUS.

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Side-by-side snapshot

VTVXUS
Full nameVanguard Total World Stock ETFVanguard Total International Stock ETF
IssuerVanguardVanguard
Last Close$154.29 as of July 21, 2026$83.07 as of July 21, 2026
Distribution yield1.46%1.86%
Distribution Safety Score™ 9386
Expense ratio0.07%0.05%
AUM$77.7B$154B
Distribution frequencyQuarterlyQuarterly
Underlying indexFTSE Global All Cap IndexFTSE Global All Cap ex US Index
ObjectiveTrack the FTSE Global All Cap Index, covering developed and emerging markets.Track the FTSE Global All Cap ex US Index, covering non-U.S. developed and emerging stocks.
Asset classEquityEquity
Inception date06/24/200801/26/2011
Beta0.980.92
Last dividend$0.5630$0.3860
Ex-dividend date06/18/202606/18/2026

Bottom lineVT and VXUS are nearly interchangeable — both offer very similar global equity exposure with very similar cost and risk. The clearest tie-breaker is cost: VXUS is cheaper at 0.05% vs 0.07%.

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

VT has lagged VXUS over the trailing twelve months, posting a 20.59% total return against 22.94%. The picture flips over 10 years, though — VT has compounded at 12.32% a year, ahead of VXUS at 9.41%. Figures are total returns: price change plus every distribution reinvested.

SymbolYTD1Y3Y5Y10YSince Jan 2011Volatility Sharpe Sortino Max drawdown
VT9.23%20.59%18.13%10.94%12.32%10.23%14.5%0.851.22-16.5%
VXUS9.13%22.94%16.70%8.80%9.41%6.55%15.3%0.721.03-13.6%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 20, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jan 2011” measures every fund from January 28, 2011 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

VT (Vanguard Total World Stock ETF) and VXUS (Vanguard Total International Stock ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

VXUS offers the higher yield at 1.86% vs 1.46% for VT. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VXUS is cheaper with an expense ratio of 0.05% compared to 0.07%.

They track different benchmarks: VT is linked to FTSE Global All Cap Index while VXUS tracks FTSE Global All Cap ex US Index, which means their performance drivers differ.

VXUS is the larger fund by assets ($154B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, VT would generate roughly $12.17/month, while VXUS would produce $15.50/month, at current distribution rates. Both pay quarterly distributions.

VT yield1.46%
VXUS yield1.86%
Monthly diff on $10K$3.33

Cost & efficiency

Over 10 years on $10,000, VT would cost approximately $70 in fees vs $50 for VXUS (simplified, not compounded). The $20.00 difference may be offset by yield or performance.

VT ER0.07%
VXUS ER0.05%

Strategy & risk

VT tracks FTSE Global All Cap Index with an international approach, while VXUS tracks FTSE Global All Cap ex US Index with an international approach. Beta is 0.98 for VT and 0.92 for VXUS, indicating VXUS is less volatile relative to the market.

VT beta0.98
VXUS beta0.92

Fund details

VT is managed by Vanguard (launched 06/24/2008) with $77.7B in assets. VXUS is managed by Vanguard (launched 01/26/2011) with $154B in assets.

VT AUM$77.7B
VXUS AUM$154B
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Frequently asked questions

Is VT or VXUS better for dividend income?

It depends on your goals. VXUS currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between VT and VXUS?

VT (Vanguard Total World Stock ETF) tracks FTSE Global All Cap Index with an international approach, while VXUS (Vanguard Total International Stock ETF) tracks FTSE Global All Cap ex US Index with an international approach. They are issued by Vanguard and Vanguard respectively.

Can I hold both VT and VXUS?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Which has lower fees, VT or VXUS?

VT has an expense ratio of 0.07% while VXUS charges 0.05%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in VT vs VXUS generate?

At current rates, $10,000 in VT would generate roughly $12.17 per month ($146.00 annually). The same in VXUS would produce about $15.50 per month ($186.00 annually).

Which has performed better historically, VT or VXUS?

VT has lagged VXUS over the trailing twelve months, posting a 20.59% total return against 22.94%. The picture flips over 10 years, though — VT has compounded at 12.32% a year, ahead of VXUS at 9.41%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

VT vs VXUS — at a glance

Generated July 2026 from current fund data.

Overview

VT and VXUS are both Vanguard index ETFs tracking the FTSE Global All Cap family of indexes, but they differ fundamentally in scope. VT includes U.S. stocks alongside developed and emerging international markets; VXUS excludes the U.S. entirely and focuses on non-U.S. developed and emerging economies. Both charge minimal fees and distribute quarterly, making them core building blocks for globally diversified portfolios.

How they differ

The biggest distinction is geographic: VT gives you the entire investable world in one fund, while VXUS is pure ex-U.S. exposure. If you own VT, you're already getting international markets as part of a home-country-biased allocation (roughly 50% U.S., 50% ex-U.S. by design). VXUS works as a satellite holding to overweight international markets or as the non-U.S. sleeve of a two-fund portfolio.

Yield differs meaningfully: VXUS distributes 1.81% annually versus VT's 1.43%, reflecting higher dividend yields in many non-U.S. markets and different portfolio composition. VXUS has a lower expense ratio at 0.05% compared to VT's 0.07%, though the difference is negligible in dollar terms. VXUS is substantially larger at $149B in AUM versus VT's $74.1B, suggesting lower trading friction. Beta is modestly lower for VXUS at 0.92 versus VT's 0.98, hinting at slightly different volatility profiles.

Who each is best for

  • VT: Fits investors seeking a single all-in-one global equity holding that simplifies currency diversification and geographic rebalancing without requiring multiple fund positions.
  • VXUS: Designed for investors building a custom geographic allocation—either pairing it with a U.S. core holding for explicit country weighting, or using it to tilt overweight toward non-U.S. markets.

Key risks to know

  • Currency exposure: Both funds carry unhedged foreign exchange risk. Strengthening U.S. dollar dampens returns from non-U.S. holdings; weakening dollar amplifies them. VXUS has 100% currency exposure to non-U.S. movements; VT's ~50% international allocation moderates this effect.
  • Emerging market volatility: VXUS holds a higher proportion of emerging markets than VT (given no U.S. anchor), exposing it to greater political, regulatory, and credit risk in less-developed economies.
  • Home bias trade-off: VT's U.S. weighting (~50%) may feel either redundant or beneficial depending on your broader portfolio structure; owning VT alongside U.S.-specific holdings creates unintended double-weighting of America.
  • Index reconstitution and cash drag: Both funds experience minor performance divergence from their underlying indexes due to rebalancing costs, cash positions, and the timing of index methodology changes across the FTSE Global All Cap family.

Bottom line

VT simplifies global diversification in a single fund; VXUS enables precise geographic customization when paired with a U.S. equity holding. If you want uncomplicated one-fund global exposure, VT's integrated design aligns with that objective. If you're building a deliberate two-fund allocation or tilting toward international markets, VXUS's lower fee and higher yield merit consideration alongside whatever U.S. core you choose. Past performance does not guarantee future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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