VEU vs VXUS: The Same International Fund, Minus the Small Caps
Both hold developed and emerging markets outside the US. VXUS also includes small-caps; VEU stops at large and mid. That is almost the whole story.
VEU (Vanguard FTSE All-World ex-US ETF) and VXUS (Vanguard Total International Stock ETF) cover the same ground: both hold developed and emerging markets outside the United States, market-cap weighted, from the same issuer. The difference is which size tiers they reach. VEU tracks the FTSE All-World ex-US Index, roughly 3,800 large and mid-cap companies. VXUS tracks the FTSE Global All Cap ex-US Index, roughly 8,600 companies, adding about 4,000 international small-caps that VEU leaves out. Because small-caps are only a small slice of global market value, the two funds behave almost identically, and their returns track within a few tenths of a percent. VXUS is the more complete "total international" fund and is far larger, around $629B versus $96B, which tends to mean tighter spreads. VEU is one basis point cheaper, 0.04% versus 0.05%, which is a $1 per year difference on $10,000 and not a reason to choose by itself. Pick VXUS if you want the truest one-fund international holding with small-caps included. Pick VEU if you specifically do not want small-cap exposure, or you hold it separately. For almost everyone this is close to a coin flip, and either is a sound core international position.
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📋 VEU vs VXUS: Key Facts Side by Side
| Metric | VEU | VXUS |
|---|---|---|
| Fund Name | Vanguard FTSE All-World ex-US Index Fund ETF Shares | Vanguard Total International Stock Index Fund ETF Shares |
| Issuer | Vanguard | Vanguard |
| Tracks Index | FTSE All-World ex-US | FTSE Global All Cap ex-US |
| Expense Ratio | 0.04% ✓ | 0.05% |
| Cost per $10K/yr | $4.00 | $5.00 |
| AUM | $96.4B | $629.1B |
| Holdings | 3,800 | 8,600 |
| Inception | 2007 | 2011 |
| 1-Year Return | +15.54% | +15.12% |
| 3-Year Return | +21.57% | +21.33% |
| 5-Year Return | +9.91% | +9.64% |
| Dividend Yield | 2.36% | 2.34% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.02% | 0.01% |
AUM and returns updated Oct 7, 2026 from ETF BFF database; expense ratios verified against issuer filings. Returns are annualised. Not investment advice.
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📊 VEU vs VXUS: Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- want the lowest fees: saves ~$1/yr per $10K vs VXUS
- want geographic diversification beyond US stocks
- want broader diversification (8,600 holdings vs 3,800)
- want geographic diversification beyond US stocks
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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