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Dividend Vision

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 September 4, 2026

Best for

  • VTInvestors who want broad equity exposure.
  • VXUSInvestors who want broad equity exposure.

Jump to the side-by-side numbers

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 23.46% total return against 28.10%. The picture flips over 10 years, though — VT has compounded at 12.45% a year, ahead of VXUS at 9.49%. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD1Y3Y5Y10YSince Jan 2011Volatility Sharpe Sortino Max drawdown
VT14.49%23.46%20.70%10.68%12.45%10.48%14.5%0.991.44-16.5%
VXUS16.15%28.10%20.48%9.07%9.49%6.92%15.3%0.931.34-13.6%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 4, 2026. YTD and 1Y are cumulative; windows of one year or longer 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.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricVTVXUS
Full nameVanguard Total World Stock ETFVanguard Total International Stock ETF
IssuerVanguardVanguard
Underlying indexFTSE Global All Cap IndexFTSE Global All Cap ex US Index
Last Close$161.73 as of September 4, 2026$88.41 as of September 4, 2026
Distribution rate1.39%1.75%
Distribution Safety Score™ 9688
Safety-Adjusted Yield 1.33%1.54%
Expense ratio0.06%0.05%
AUM$81.3B$164B
Distribution frequencyQuarterlyQuarterly
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$0.563$0.386
Ex-dividend date06/18/202606/18/2026

Bottom lineVT and VXUS are both for investors who want broad equity exposure — so strategy isn't the deciding factor here. Fees and payouts are close too, so it comes down to which your broker offers commission-free and any share-price or tax-lot preference.

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

Vanguard
ETFs116
Total AUM$4650B

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

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

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

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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 1.75% vs 1.39% 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 0.06%.

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

VXUS is the larger fund by assets ($164B), but assets alone do not establish trading costs or liquidity.

Deep dive

Yield & income

On a $10,000 investment, VT would generate roughly $11.58/month, while VXUS would produce $14.58/month, at current distribution rates. Both pay quarterly distributions.

VT yield1.39%
VXUS yield1.75%
Monthly diff on $10K$3.00

Cost & efficiency

Over 10 years on $10,000, VT would cost approximately $60 in fees vs $50 for VXUS (simplified, not compounded). The $10.00 difference may be offset by yield or performance.

VT ER0.06%
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, making VXUS the less volatile of the two by this measure.

VT beta0.98
VXUS beta0.92

Fund details

VT is managed by Vanguard (launched 06/24/2008) with $81.3B in assets. VXUS is managed by Vanguard (launched 01/26/2011) with $164B in assets.

VT AUM$81.3B
VXUS AUM$164B
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Frequently asked questions

What is the current distribution rate for VT and VXUS?

VT currently distributes 1.39% and VXUS 1.75%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

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.

Is VT or VXUS safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — VT scores 96, VXUS scores 88, so VT's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, VT or VXUS?

VT has an expense ratio of 0.06% 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 $11.58 per month ($139.00 annually). The same in VXUS would produce about $14.58 per month ($175.00 annually).

Which has performed better historically, VT or VXUS?

VT has lagged VXUS over the trailing twelve months, posting a 23.46% total return against 28.10%. The picture flips over 10 years, though — VT has compounded at 12.45% a year, ahead of VXUS at 9.49%. 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 September 5, 2026.

Overview

VT and VXUS are both Vanguard equity index ETFs tracking FTSE Global All Cap benchmarks, but they differ fundamentally in geographic scope. VT holds the entire world—U.S. and international markets combined—while VXUS excludes the U.S. entirely, focusing only on developed and emerging markets outside America. The choice between them hinges on how much U.S. equity exposure you already own elsewhere in your portfolio.

How they differ

VT covers global equities (developed and emerging markets, including the U.S.), whereas VXUS deliberately strips out U.S. stocks, giving you pure ex-U.S. exposure. That's the structural difference; the second is yield. On fees, VXUS edges VT by 1 basis point (0.05% vs. 0.06%), though the difference is negligible. VXUS is significantly larger by assets under management ($164B vs. $81.3B) and carries slightly lower beta (0.92 vs. 0.98), suggesting marginally less systematic volatility.

Who each is best for

VT: Fits investors who want a single-fund global equity foundation and aren't holding a concentrated U.S. equity position elsewhere. Works as a complete equity core for someone building a truly diversified, market-cap-weighted portfolio.

VXUS: Designed for investors who already own U.S. equities (through a U.S. total-market fund, individual stocks, or employer retirement holdings) and want to add international diversification without double-counting America.

Key risks to know

  • U.S. exclusion risk (VXUS): By design, VXUS has zero U.S. exposure. If U.S. markets outperform significantly over a multi-year period, the fund will lag a globally diversified alternative. Conversely, periods of U.S. underperformance will favor VXUS.
  • Currency risk: Both funds hold non-U.S. equities and are therefore exposed to foreign currency fluctuations against the dollar. A strengthening dollar reduces returns to U.S.-based investors; weakening dollar enhances them.
  • Emerging-market concentration: Both indexes include emerging markets, introducing political, regulatory, and liquidity risks distinct from developed-market exposure. Emerging-market volatility can spike during trade tensions or capital-flow reversals.
  • Home-country bias complexity: VT's inclusion of U.S. equities reflects market-cap weighting, meaning it naturally tilts toward American stocks. An investor using VXUS alongside a separate U.S. fund has full control over that tilt; an investor using only VT does not.

Bottom line

If you're holding U.S. equities separately (through a total-market fund or concentrated positions), VXUS provides cleaner international diversification and a slightly higher yield with marginally lower fees. If you want a single global equity vehicle that requires no coordination with other holdings, VT offers simplicity and true worldwide exposure in one fund. Past performance doesn't predict future results, and the choice depends on what else sits in your portfolio.

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

Learn the method

The metrics behind this comparison, explained in the Academy.

How to read a fund's stats How expense ratios eat returns Correlation between two funds

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