🌍 VTI vs VOO vs VXUS · 3-Fund Portfolio Comparison
VTI vs VOO vs VXUS: The 3-Fund Portfolio Core
VTI owns all US stocks. VOO owns the largest 503. VXUS owns everything outside the US. Combined, they cover the entire global stock market for 0.03% to 0.07%.
🇺🇸 VTI: 3,700 US stocks
📊 VOO: 503 US stocks
🌍 VXUS: 8,400 international stocks
VTI vs VOO vs VXUS: Side-by-Side
Note: these three funds are not substitutes — VTI and VOO are alternatives for US exposure; VXUS is a complement that adds international stocks.
|
VTI |
VOO |
VXUS |
| Full name | Vanguard Total Stock Market ETF | Vanguard S&P 500 ETF | Vanguard Total International Stock ETF |
| Expense ratio | 0.03% | 0.03% | 0.07% |
| AUM | $490B | $600B | $75B |
| Holdings | 3,700 stocks | 503 stocks | 8,400 stocks |
| Coverage | Total US market | Large-cap US only | Developed + emerging ex-US |
| Includes small-caps | Yes | No | Yes |
| Inception | 2001 | 2010 | 2011 |
| 1-year return | +24.0% | +24.7% | +12.8% |
| 5-year return | +15.4% | +15.9% | +6.9% |
Past performance does not guarantee future results.
The BFF Take
The key insight: VTI and VOO are substitutes for US equity exposure; VXUS is a complement that adds international. These three funds are the engine of the Bogleheads 3-fund portfolio. The classic structure is VTI + VXUS + a bond fund (like BND). For S&P 500 purists, VOO + VXUS + BND works identically. The choice between VTI and VOO is almost trivial — VTI includes small- and mid-cap US stocks that make up about 20% of its weight, while VOO holds only the 503 largest. Over the past decade, VOO has slightly outperformed VTI because large-cap tech dominated. Over longer historical periods, small-caps have generally outperformed. The bigger decision is how much VXUS to hold. At global market-cap weight, international stocks represent roughly 40% of the world. Most US-based investors hold somewhere between 20% and 40% international. International stocks have underperformed US stocks significantly since 2010, but they have historically diversified US drawdowns and valuations are meaningfully cheaper today. A starting point: VTI 60% + VXUS 30% + BND 10% for a long-horizon investor. Adjust the bond percentage for age and risk tolerance.
What Each Fund Covers
VTI
US Total Market
- All 3,700 US publicly traded stocks
- Includes small- and mid-cap companies
- Best single fund for total US coverage
- 0.03% — same cost as VOO
VOO
US Large-Cap
- 503 largest US companies by market cap
- Covers ~85% of total US market cap
- Alternative to VTI for US exposure
- 0.03% — same cost as VTI
VXUS
International ex-US
- 8,400 stocks in 50+ countries
- Developed markets (Europe, Japan) + emerging
- Pairs with VTI or VOO for global coverage
- 0.07% — slightly higher for global reach
Frequently Asked Questions
Should I hold VTI or VOO alongside VXUS?
Either works. VTI includes small- and mid-cap US stocks that VOO excludes, giving you broader US coverage. VOO holds only the 503 largest US companies. Because large-caps dominate by market cap, the practical difference is small — VTI and VOO have correlated roughly 0.99 over most measurement periods. If you want the purest total market exposure, use VTI. If you already hold VOO for other reasons or prefer the S&P 500 brand, VOO + VXUS is an equally valid 2-fund core. The fee is identical at 0.03%.
What percentage of my portfolio should be VXUS?
At global market-cap weight, international stocks represent about 40% of global equity market cap. Vanguard's target-date funds use approximately 40% international allocation. Many individual investors use 20-30% international, accepting some home-country bias for simplicity. The honest answer: there is no universally correct number. US stocks have dramatically outperformed international since 2010, which makes heavy VXUS allocation look wrong in hindsight. But valuations in international markets are cheaper, and diversification across geographies has historically reduced portfolio volatility. A range of 20-40% international within your equity allocation is defensible. Past performance does not guarantee future results.
Does VXUS include emerging markets?
Yes. VXUS holds both developed market international stocks (Europe, Japan, Australia, Canada) and emerging market stocks (China, India, Brazil, Taiwan, South Korea). Approximately 25-30% of VXUS is emerging markets. If you want to separate developed and emerging market exposure, you would use VEA (developed international) and VWO (emerging markets) instead of VXUS. Most investors are fine with VXUS's combined approach.
Is VTI + VXUS better than just VTI?
By the numbers, VTI alone has outperformed VTI + VXUS over the past 10-15 years because US stocks have dominated. The argument for adding VXUS: US stocks currently trade at higher valuations than international stocks by most metrics (P/E, CAPE), diversification across geographies reduces dependence on any single country's economy, and international stocks have historically outperformed US stocks in some multi-decade periods (including 2000-2010 when international beat the S&P 500 significantly). Adding VXUS sacrifices some US concentration in exchange for broader global coverage. Whether that trade-off is worth it is a portfolio construction decision that depends on your view of future relative returns.
Past performance does not guarantee future results. Fund data is approximate and may not reflect current holdings or returns. Nothing on ETF BFF is personalized financial advice.