VTI vs VXUS: US Market vs the Rest of the World
These two do not compete. VTI is the entire US stock market; VXUS is everything outside it. The real question is not which to pick, but whether you want international at all.
VTI and VXUS are designed to be held together, not chosen between. VTI owns the entire US stock market, about 3,700 companies, for 0.03%. VXUS owns roughly 8,500 companies outside the US, both developed markets like Europe and Japan and emerging markets like India and China, for 0.07%. They share zero holdings, so combining them gives you the whole investable world. Holding VTI plus VXUS at global market-cap weight, which is roughly 60% US and 40% international, is the textbook total-world portfolio, and buying both is the same exposure as owning VT in a single fund. So the decision is not really VTI versus VXUS. It is whether you want international exposure at all. The honest trade-off: over the past decade, US-only investors beat globally diversified ones, because US megacap technology led and international lagged. That outperformance is real but not guaranteed to continue, and it has reversed for long stretches in market history. International diversification is best understood as insurance against a decade where the US is not the winner, not as a way to maximize returns. If you want maximum simplicity and accept US concentration, VTI alone is defensible. If you want to own the whole world and not bet everything on one country, add VXUS.
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 →
📋 VTI vs VXUS — Key Facts Side by Side
| Metric | VTI | VXUS |
|---|---|---|
| Fund Name | Vanguard Morningstar Total Stock Market ETF | Vanguard Total International Stock Index Fund ETF Shares |
| Issuer | Vanguard | Vanguard |
| Tracks Index | CRSP US Total Market | FTSE Global All Cap ex US |
| Expense Ratio | 0.03% ✓ | 0.07% |
| Cost per $10K/yr | $3.00 | $7.00 |
| AUM | $2,202.6B | $629.1B |
| Holdings | 3,700 | 8,500 |
| Inception | 2001 | 2011 |
| 1-Year Return | +19.80% | +24.22% |
| 3-Year Return | +18.73% | +16.84% |
| 5-Year Return | +11.63% | +8.83% |
| Dividend Yield | 1.05% | 2.56% |
| Holdings Overlap | None by design. VTI holds US stocks; VXUS holds everything outside the US. They are built to be held together, not chosen between. — see full overlap → | |
| Avg Bid-Ask Spread | 0.00% | 0.01% |
Expense ratio, AUM, and returns updated Aug 1, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 VTI 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 ~$4/yr per $10K vs VXUS
- want the entire US stock market: large, mid, and small cap in one fund
- want broader diversification (8,500 holdings vs 3,700)
- want the entire US stock market: large, mid, and small cap in one fund
💰 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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❓ VTI vs VXUS — Frequently Asked Questions
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