⚖️ VOO vs VXUS Comparison · Free & No Signup

VOO vs VXUS: Not a Choice, a Split

Almost every VOO vs VXUS comparison treats them as rivals. They hold zero overlapping stocks. One is the US large-cap market, the other is every market that is not the US. The real question is what share of your equity sits in each.

💰 VOO is cheaper 🔬 Compare top 10 holdings → 💡 Plain-English verdict
🤝 BFF Take
These Funds Are Complements, and the Only Decision Is the Ratio

VOO (Vanguard S&P 500 ETF) holds the 503 largest US companies at 0.03%. VXUS (Vanguard Total International Stock ETF) holds roughly 8,500 companies across developed and emerging markets outside the US at 0.07%. Their overlap is zero by construction, which makes "which is better" the wrong question. Held together they approximate global equity, and the only decision that matters is the weighting. Global market-cap weight puts international at roughly 40% of world equity, and Vanguard's own target-date funds use an allocation in that neighborhood. Many US investors run 20% to 30% instead, accepting home-country bias for simplicity. US stocks have substantially outperformed international since 2010, which makes any international allocation look like a mistake in hindsight; international outperformed for much of the 2000s, which is the argument for holding some. Past performance does not guarantee future results.

📋 Quick Takeaways
🌍Zero overlap: VOO is US large caps only, VXUS is everything outside the US, so they complete rather than compete
💵VOO costs 0.03% and VXUS costs 0.07%, both low enough that fee is not the deciding factor
📊International is roughly 40% of global equity market cap; most US investors hold materially less than that
📊 Data-Based Take: VOO has the lower fee

Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.

Both funds trade commission-free at every major brokerage. How the major brokerages compare →

Reviewed by a CFA® Charterholder · Data as of Aug 1, 2026 · Educational only, not financial advice
VOO
Vanguard S&P 500 ETF
Expense Ratio
0.03% ✓
1-Year Return
+19.3%
AUM
$1,600.2B
Holdings
503
VXUS
Vanguard Total International Stock Index Fund ETF Shares
Expense Ratio
0.07%
1-Year Return
+24.2%
AUM
$629.1B
Holdings
8,500

📋 VOO vs VXUS — Key Facts Side by Side

Metric VOO VXUS
Fund Name Vanguard S&P 500 ETF Vanguard Total International Stock Index Fund ETF Shares
Issuer Vanguard Vanguard
Tracks Index S&P 500 FTSE Global All Cap ex US
Expense Ratio 0.03% ✓ 0.07%
Cost per $10K/yr $3.00 $7.00
AUM $1,600.2B $629.1B
Holdings 503 8,500
Inception 2010 2011
1-Year Return +19.31% +24.22%
3-Year Return +19.09% +16.84%
5-Year Return +12.66% +8.83%
Dividend Yield 1.07% 2.56%
Holdings Overlap See holdings overlap →
Avg Bid-Ask Spread 0.01% 0.02%

Expense ratio, AUM, and returns updated Aug 1, 2026 from ETF BFF database. Returns are annualised. Not investment advice.

📊 VOO vs VXUS — Annualised Returns

Annualised returns (trailing, price-based). Past performance does not guarantee future results.

🎯 Which Fund Fits Which Investor?

Often fits investors who...
VOO
  • want the lowest fees: saves ~$4/yr per $10K vs VXUS
  • want focused large-cap US stock exposure via S&P 500
Often fits investors who...
VXUS
  • want broader diversification (8,500 holdings vs 503)
  • 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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❓ VOO vs VXUS — Frequently Asked Questions

The framing assumes they compete, and they do not. VOO holds 503 US large-cap stocks; VXUS holds around 8,500 companies outside the US. No stock appears in both. Investors who want global equity exposure hold both and decide the ratio; investors who want US-only exposure hold VOO alone. The genuine decision is what percentage of your stock allocation sits outside the United States, not which ticker wins.
At global market-cap weight, international equity is roughly 40% of the world total, and Vanguard's target-date funds use an allocation near that. Many individual investors use 20% to 30%, accepting some home-country bias. There is no single correct number. A range of 20% to 40% of your equity allocation is defensible, and the honest caveat is that US outperformance since 2010 has made any international allocation look wrong in hindsight while international led for much of the 2000s. Past performance does not guarantee future results.
No. VOO tracks the S&P 500, which by definition holds only US companies. VXUS tracks a FTSE index explicitly excluding the US. Holding both means owning two portfolios with no shared positions, which is why they combine into broad global coverage rather than duplicating exposure. This is the cleanest complementary pair in indexing.
VTI covers the total US market, roughly 3,700 stocks including small and mid caps, while VOO covers the 503 largest. Because large caps dominate by market value, the two have tracked each other very closely, and the practical difference alongside VXUS is small. VTI plus VXUS is the more complete two-fund global portfolio; VOO plus VXUS gets you most of the way there and is equally valid if you already hold VOO.
US large caps, particularly technology, have led global markets since roughly 2010, and VOO holds exactly that segment. VXUS spreads across developed and emerging markets, including regions with slower growth and heavier exposure to sectors that lagged. Valuations on international markets are cheaper by most common metrics, which is the case for expecting the gap to narrow, though nobody knows the timing. Past performance does not guarantee future results.

New to ETF investing? See answers to the most common ETF questions →

📄 VOO & VXUS Fact Sheets

VOO Fact Sheet VXUS Fact Sheet
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.