What is the primary difference in cost structure between AVDE and VXUS?

The most distinct difference lies in their expense ratios. VXUS has a very low expense ratio of 0.05%, whereas AVDE charges 0.23%. Over long periods, even small differences in fees can significantly impact net returns, as higher costs compound against the investor. VXUS is designed to be a highly efficient, low-cost vehicle for broad market exposure, while AVDE's higher fee reflects its active management approach and factor-based selection strategy. Investors should consider this cost gap when evaluating long-term wealth accumulation potential and the specific trade-offs between active and passive management styles. It is crucial to weigh these fees against any potential benefits of active strategies.

How do the fund sizes and liquidity profiles compare?

VXUS is significantly larger than AVDE in terms of net assets. With approximately $164.0 billion in net assets, VXUS offers deep liquidity and is one of the largest international ETFs available. In contrast, AVDE manages around $19.1 billion. While AVDE's size is substantial and likely supports adequate trading liquidity for most investors, VXUS's massive scale implies tighter bid-ask spreads and potentially lower market impact costs during large transactions. Fund size is often considered a proxy for stability and liquidity. Larger funds generally attract more trading activity, which benefits individual investors by ensuring shares can be bought or sold easily at predictable prices without significantly affecting the market price.

What are the historical track records of these two ETFs?

There is a notable difference in their operational histories. VXUS was launched on January 26, 2011, providing investors with a long-term track record spanning over a decade of various market conditions. This allows for robust analysis of its performance during different economic cycles. AVDE, on the other hand, had a much more recent inception date of September 24, 2019. Its shorter operating history means there is less historical data available to evaluate how it performs across a full market cycle, particularly during downturns. Investors often view longer track records favourably when assessing a fund's consistency and management quality. However, newer funds may employ updated strategies that could be advantageous, though they carry less proven history.

How do the dividend yields of AVDE and VXUS differ?

Based on the provided data, AVDE offers a moderate dividend yield of 2.74%, which is higher than VXUS's yield of 2.28%. This difference suggests that AVDE's portfolio construction or factor tilts currently generate more income than the broad market index replicated by VXUS. For investors focused on income generation, this 0.46 percentage point gap might be appealing, although it must be balanced against the higher expense ratio of AVDE. Dividend yields can fluctuate based on market conditions and the underlying holdings' payout policies. While VXUS aims to capture the total return of the international market, AVDE's higher yield indicates a potential tilt towards income-producing stocks or specific sectors that distribute more cash to shareholders compared to the overall international equity market.

What can be learned from the top holdings data available?

The transparency and nature of the top holdings differ. AVDE provides specific top holdings data, showing a highly diversified portfolio where the largest position, ASML, constitutes only 1.27% of the fund. This granular visibility helps investors understand the specific company exposures. Conversely, VXUS lists its top holdings as 'not available' in this context, though it is known for tracking a broad index with thousands of stocks. For AVDE, seeing companies like Shell, BBVA, and BHP in the top list illustrates its active selection. The lack of specific holding data for VXUS in this dataset limits the ability to analyse individual company risks directly, highlighting a trade-off between the active transparency of AVDE and the broad, index-focused nature of VXUS where individual stock influence is minimal.

How do the sector allocations compare between the two funds?

Currently, sector weightings are not available for either AVDE or VXUS in the provided dataset. This lack of transparency means investors cannot immediately analyse industry concentration or compare how each fund is exposed to sectors like technology, healthcare, or financials. For passive funds like VXUS, sector weights usually track a broad market cap-weighted index, but without specific data, one must rely on external resources for detailed breakdowns. Similarly, AVDE's active management implies it might deviate from market weights to target factors, but without the data, the extent of this deviation is unknown. Investors focused on sector rotation or specific industry exposure may find this absence of data a limitation, requiring further independent research to understand the fundamental risks associated with each fund's composition.

What are the implications of overlapping holdings between these funds?

Based on the available data, there are no shared top-10 holdings between AVDE and VXUS. This distinct difference suggests that the two funds are targeting different areas of the international equity market or utilizing different selection methods. For an investor considering holding both, this lack of overlap in top positions is beneficial as it may reduce unintended concentration in specific companies. However, since both funds are categorized as 'Foreign Large Blend', there is likely a broader overlap in the underlying universe of mid and large-cap international stocks. The absence of shared top holdings indicates that AVDE's active strategy is not simply replicating the largest components of the index that VXUS tracks, potentially offering a different risk and return profile through diversification at the top end of the portfolio.

What investing goals are typically associated with each fund?

VXUS is typically associated with investors seeking simple, low-cost, broad-market exposure to international stocks. Its primary goal is to replicate the performance of the total international stock market, making it suitable for those who believe in the efficiency of global markets and want to minimise costs. AVDE, with its active management and higher fee, is generally associated with investors who believe that specific factors, such as profitability or value, can help achieve better risk-adjusted returns than the broad market. AVDE targets international equities but uses a rules-based active approach to select stocks, aiming to outperform or provide a different return profile compared to a standard index. VXUS suits the passive investor, while AVDE suits the factor-oriented investor.

How should an investor interpret the lack of index tracking data?

The data provided lists 'Index tracked: not available' for both AVDE and VXUS, which is unusual for an ETF comparison. Typically, VXUS tracks a broad international index like the FTSE Global All Cap ex US Index, while AVDE does not track a specific benchmark in the traditional passive sense but follows an active strategy. For beginners, this missing information means they cannot easily compare the funds against a standard yardstick. Without knowing the exact index for VXUS or the benchmark for AVDE, it is harder to judge performance relative to the market. Investors should seek out this specific data from the fund issuers to understand how each fund is measured against its peers and what the 'total international stock' definition entails for these specific products.

Why might a fund have a higher expense ratio but a shorter history?

AVDE illustrates a combination of higher fees and shorter history. Its 0.23% expense ratio reflects the costs associated with active management, where managers or algorithms select stocks to try and beat a benchmark. This contrasts with VXUS, whose 0.05% ratio reflects the low costs of passively tracking an index. AVDE's shorter history, starting in 2019, means it is a newer product in the market compared to the established VXUS from 2011. The higher fee is often justified by the promise of potential excess returns, though this is not guaranteed. The shorter history adds uncertainty regarding how the fund has performed across different economic conditions. Investors weigh the potential for outperformance against the certainty of lower costs and a proven track record.

What does the 'Foreign Large Blend' category imply for these funds?

Both funds are categorised as 'Foreign Large Blend', indicating they primarily invest in large-capitalisation companies from developed and emerging markets outside the United States, with a mix of growth and value characteristics. This shared category suggests they cover similar broad asset classes. However, the 'Blend' aspect means they do not exclusively target high-growth or deep-value stocks but aim for a balanced approach. Despite this common label, the active nature of AVDE allows it to deviate from standard market caps and weights, whereas VXUS likely adheres closely to market capitalisation. Understanding the category helps investors place these funds in a portfolio context, knowing they provide international large-cap exposure, but the specific implementation differs significantly between the active and passive strategies.

AVDE vs VXUS

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

This page compares the Avantis International Equity ETF (AVDE) and the Total International Stock Vanguard ETF (VXUS), focusing on their expense ratios, top holdings, dividend yields, and how each fund tracks its market. It highlights the differences in cost and composition between the two exchange-traded funds. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

AVDE

Metric

VXUS

0.23%

Expense Ratio

0.05%

2.74%

Dividend Yield

2.28%

$19.06B

Net Assets

$164.04B

3,336

Holdings

8,860

Sep 24, 2019

Inception Date

Jan 26, 2011

–

Index Tracked

–

Foreign Large Blend

Fund Category

Foreign Large Blend

VXUS costs about $18.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

AVDE

Pros

Investors benefit from a moderate dividend yield of 2.74%, providing income potential alongside capital exposure.
The fund maintains significant assets under management at 19.1 billion dollars, supporting liquidity and operational stability.
Top holdings are highly granular with the largest position under 1.3%, suggesting broad international diversification.

Considerations

The expense ratio of 0.23% is higher than many comparable international equity ETFs available in the market.
Inception in September 2019 means the fund has a shorter operating history than many established alternatives.
Sector weightings are not available, limiting transparency for investors focused on specific industry exposures.

VXUS

Pros

A low expense ratio of 0.05% helps preserve net returns by minimising ongoing investor costs.
Massive net assets of 164 billion dollars indicate deep liquidity and high market participation.
The fund has been operating since January 2011, providing a long track record for investors.

Considerations

The dividend yield of 2.28% is lower than some peer international equity funds offering higher income.
Specific top holdings data is not available, reducing visibility into individual company exposures.
Sector weights are not available, preventing clear analysis of the fund’s industry allocation.

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About AVDE and VXUS

AVDE (AVDE)

The Avantis International Equity ETF (AVDE) is an exchange-traded fund that aims to provide investors with access to quality companies located outside the United States. With an inception date of September 24, 2019, this fund has grown significantly, managing net assets of USD 19.06 billion. It boasts a broad portfolio of 3,336 holdings, diversified across various regions. Operating with a competitive expense ratio of 0.23%, AVDE is categorised as a Foreign Large Blend fund. Currently, it offers a dividend yield of 2.74%, appealing to investors seeking international diversification and potential income. The fund's strategy focuses on identifying companies with strong fundamentals, offering exposure to global markets beyond the US.

VXUS (VXUS)

Vanguard Total International Stock ETF (VXUS) offers investors broad exposure to non‑US equities across developed and emerging markets. The fund tracks a global index that excludes the United States and holds thousands of stocks spanning large-, mid- and small-cap companies. It is structured as a passive, market‑capitalisation‑weighted ETF, which aims to replicate international equity market performance while keeping trading simplicity and diversification benefits. VXUS is typically unhedged to sterling or other home currencies, so returns can be affected by currency movements as well as underlying stock performance. Investors should note that, like all equity funds, values can fall as well as rise and past performance does not guarantee future results. This summary provides general, educational information and is not personalised investment advice; suitability depends on an individual’s circumstances, risk tolerance and investment horizon.

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AVDE vs VXUS

Fund Snapshot