What is the primary difference between VEU and VXUS?

Both VEU and VXUS are Vanguard ETFs designed for international equity exposure. VEU tracks the FTSE All-World ex-US index, excluding the United States. VXUS offers total international stock exposure, including emerging markets, but also excludes the US. While both aim for global diversification outside the US, their index methodologies and specific regional allocations can differ. Investors should review the underlying indices, though exact data here is limited, to understand the nuances of their coverage.

How do expense ratios affect long-term returns?

Expense ratios represent the annual cost of managing an investment fund, expressed as a percentage of assets. Lower expense ratios can improve long-term returns because less capital is deducted for fund management. For example, if one fund charges 0.04% and another 0.05%, the difference of 0.01% per annum may seem small. However, over decades of compounding growth, this fee differential can significantly impact the final portfolio value, making fee structure a key factor in investment analysis.

What does net assets indicate for an ETF?

Net assets reflect the total value of the fund's holdings minus liabilities, often called Assets Under Management (AUM). Higher net assets generally indicate greater investor confidence and better liquidity. Liquidity means the fund can easily buy or sell securities without significantly affecting their price. For instance, a fund with $164.0 billion in net assets is substantially larger than one with $68.9 billion. Larger funds often benefit from economies of scale, potentially stabilising operating costs.

How do VEU and VXUS dividend yields compare?

Dividend yield measures the annual dividends paid by the fund relative to its price. Based on provided data, VEU has a dividend yield of 2.30%, while VXUS yields 2.28%. These figures are very close, indicating similar income generation potential from their respective portfolios. Small differences can arise from variations in holdings or timing of distributions. Investors should consider the yield as one component of total return, alongside capital appreciation potential and risk profiles, rather than the sole decision factor.

Which Vanguard ETF is more cost-effective?

Cost-effectiveness is often evaluated by comparing expense ratios. VEU has an expense ratio of 0.04%, whereas VXUS charges 0.05%. This makes VEU marginally cheaper in terms of direct fund fees by 0.01 percentage points annually. However, expense ratio is just one cost component; trading fees, bid-ask spreads, and tax implications also matter. While VEU has the lower stated fee, investors must weigh this against other factors like tracking difference and specific portfolio needs to determine overall cost-effectiveness.

Do these funds have significant top-holdings overlap?

Based on the provided information, there are no shared top-10 holdings between VEU and VXUS. The specific top holdings for both funds are currently listed as not available, preventing a direct comparison of their largest individual positions. Without seeing the underlying constituents, it is difficult to assess concentration risk or sector overlap. Investors typically look for diversification benefits, so understanding the composition of top holdings is crucial for evaluating how much unique exposure each fund provides relative to the other.

Are sector weights available for these funds?

Sector weights, which show how assets are distributed across industries like technology or healthcare, are not available for either VEU or VXUS in the provided data. This lack of transparency makes it challenging for investors to independently verify industry exposure or assess concentration risks within specific sectors. Typically, international funds have distinct sector allocations compared to domestic ones. Without this data, investors must rely on external resources or the fund's official prospectus for detailed sector breakdowns.

How does fund size impact investment options?

Fund size, measured by net assets, can influence liquidity and operational stability. VXUS, with $164.0 billion in net assets, is significantly larger than VEU at $68.9 billion. Larger funds often have more liquid markets for their shares, meaning they can be bought or sold with minimal price impact. However, both funds are substantial in size, likely providing sufficient liquidity for most retail investors. Size alone does not determine performance, but it can affect bid-ask spreads and premium/discount volatility.

What are the inception dates for these funds?

VEU was launched on March 2, 2007, giving it a track record of over 15 years. VXUS was launched on January 26, 2011, offering a more recent history of approximately 13 years. VEU provides a longer historical performance record, which can be useful for assessing behaviour through various market cycles. However, both have established histories. Investors should consider that past performance, regardless of inception date, is not a guarantee of future results.

Do these funds track the same market?

Both VEU and VXUS target international equity markets, excluding the United States. VEU specifically tracks the FTSE All-World ex-US index. VXUS tracks the Total International Stock Market, which includes developed and emerging markets globally. While their objectives are similar, the specific index methodologies differ. This can lead to variations in regional weighting, particularly regarding emerging markets. The index tracked for VXUS is not specified in the data, so precise comparison of their tracking mechanisms is limited.

How can investors assess transparency for these funds?

Transparency is key for understanding investment risk. For both VEU and VXUS, critical data such as the specific index tracked, top holdings, and sector weights are listed as not available in this dataset. This limits the ability for investors to independently verify portfolio composition or benchmark alignment. Investors should consult official fund fact sheets or prospectuses from Vanguard for detailed information. Relying on incomplete data can hinder accurate risk assessment and portfolio comparison.

Which fund is better for long-term international growth?

Determining the 'better' fund for long-term growth depends on individual investment goals and risk tolerance. VEU offers a lower expense ratio of 0.04% and a longer track record since 2007. VXUS has a much larger asset base of $164.0 billion and a similar dividend yield. Both provide broad international exposure. Neither is inherently superior; the choice often rests on whether an investor prioritises slight cost savings versus the liquidity benefits of a larger fund, requiring further personal research.

VEU vs VXUS

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

This page compares Vanguard FTSE All-World ex-US ETF (VEU) and Total International Stock Vanguard ETF (VXUS). It examines fees, holdings, dividends and how each fund tracks its market. VEU’s expense ratio is 0.04%, versus 0.05% for VXUS. Top-10 holdings and sector weights are not available for either fund. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

VEU

Metric

VXUS

0.04%

Expense Ratio

0.05%

2.30%

Dividend Yield

2.28%

$68.89B

Net Assets

$164.04B

3,920

Holdings

8,860

Mar 2, 2007

Inception Date

Jan 26, 2011

–

Index Tracked

–

Foreign Large Blend

Fund Category

Foreign Large Blend

VEU costs about $1.00 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

VEU

Pros

The fund charges a low expense ratio of 0.04% which is one basis point cheaper than the comparable fund.
Net assets stand at $68.9 billion which provides a substantial and liquid base for international equity investors.
The fund has been available since March 2007 giving investors a long track record for international diversification.

Considerations

The index tracked by the fund is not available which makes it difficult to independently verify the underlying methodology.
The fund’s top holdings are not available preventing investors from directly assessing the specific concentration risk within the portfolio.
Sector weights for the fund are not available which limits the ability to evaluate exposure across different economic industries.

VXUS

Pros

Net assets of $164.0 billion indicate that this is a significantly larger fund than the comparable alternative.
The fund was launched in January 2011 which is sufficiently recent to offer a modern and relevant investment vehicle.
A dividend yield of 2.28% provides a competitive income stream for investors seeking exposure to international equity markets.

Considerations

The fund carries a slightly higher expense ratio of 0.05% compared to the alternative fund’s 0.04% cost structure.
Information on the specific index tracked by the fund is not available which may hinder transparent comparison with benchmarks.
Neither the top holdings nor the sector weights are available so investors cannot fully assess the portfolio composition.

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About VEU and VXUS

VEU (VEU)

The Vanguard FTSE All-World ex-US ETF aims to give investors exposure to a broad spectrum of companies outside the United States. By tracking a comprehensive international index, it captures a wide range of markets, from established developed nations to emerging economies. With a very low expense ratio of 0.04%, this fund is designed for cost-conscious investors seeking diversification beyond their domestic holdings. The ETF holds thousands of companies, reducing the risk associated with any single stock or specific country. Its dividend yield of 2.30% provides a potential income stream for those interested in global equity performance. Investors should note that global markets can be volatile due to currency fluctuations and international political events, so values can rise and fall. This educational overview highlights the fund's structure without offering personalised financial advice, as all investments carry inherent risk and returns are not guaranteed.

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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VEU vs VXUS

Fund Snapshot