VTI vs VXUS
US Total Market (VTI) vs International Stocks (VXUS) — Home bias or global diversification?
Understanding VTI and VXUS
VTI (Vanguard Total Stock Market ETF) captures the entire US stock market — approximately 3,700 stocks across large-cap, mid-cap, and small-cap companies. It's the simplest way to own "all of America" in a single, low-cost fund.
VXUS (Vanguard Total International Stock ETF) covers the entire world outside the US — approximately 8,500 stocks across developed markets (Europe, Japan, Australia) and emerging markets (China, India, Brazil). It's your gateway to global diversification.
The key decision: Home country focus (VTI) or global diversification (VXUS)? Many investors use both — a common allocation is 60-80% VTI and 20-40% VXUS. Over the past decade, VTI has returned +265.19% while VXUS returned +131.00%, though international stocks led in the 2000s.
Head to Head
The core building blocks of a global portfolio: VTI captures the entire U.S. market (~3,700 stocks) while VXUS covers everything else (~8,500 international stocks). Compare returns, volatility, and dividend yields to decide your U.S. vs international allocation.
| Metric | VTI | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | VTI |
| Total Assets | $2.1T | $636.7B | VTI |
| Number of Holdings | ~3,700 | ~8,500 | VXUS |
| Dividend Yield | 1.10% | 2.86% | VXUS |
| 1 Year Return | +19.69% | +27.37% | VXUS |
| 5 Year Return | +68.78% | +43.49% | VTI |
| 10 Year Return | +265.19% | +131.00% | VTI |
| Volatility (3Y) | 12.2% | 12.3% | VTI |
| Max Drawdown | -50.8% | -27.8% | VXUS |
Growth of $10,000
What if you had invested $10,000 in each ETF? U.S. stocks (VTI) have dominated international stocks (VXUS) over the past decade, but this wasn't always the case—international outperformed during 2000-2010. The chart illustrates why many investors hold both for true global diversification.
Monthly Returns Comparison
The heatmaps below show month-by-month returns for U.S. (VTI) vs international (VXUS) stocks. Green indicates positive months, red indicates negative. Notice how they sometimes move in opposite directions—this low correlation is why combining them reduces portfolio volatility.
VTI Monthly Returns
VXUS Monthly Returns
Key Differences
VTI (US Total Market)
- • Covers entire US stock market (~3,700 stocks)
- • Includes large, mid, and small caps
- • Home country advantage for US investors
- • No currency risk
- • Higher historical returns (recent decades)
VXUS (International)
- • Covers developed & emerging markets (~8,500 stocks)
- • Includes Europe, Pacific, and emerging markets
- • Geographic diversification
- • Higher dividend yield
- • Currency exposure can help or hurt returns
The Bottom Line
VTI has outperformed in recent decades, but international stocks have had periods of outperformance historically. Many investors use both — a common allocation is 60-80% VTI and 20-40% VXUS for global diversification. This reduces single-country risk while maintaining US market exposure.
Frequently Asked Questions
What is the difference between VTI and VXUS?
VTI tracks the entire US stock market (about 3,700 stocks), while VXUS tracks international stocks outside the US (about 8,500 stocks across developed and emerging markets). Together they provide exposure to the entire global stock market.
Should I invest in both VTI and VXUS?
Many investors hold both for global diversification. A common allocation is 60-80% VTI and 20-40% VXUS. This reduces single-country concentration risk while maintaining exposure to the strong US market.
Why has VTI outperformed VXUS?
US stocks have significantly outperformed international stocks since 2011, driven by tech sector growth, strong dollar, and US economic leadership. However, international stocks outperformed in the 2000s, showing that leadership can shift over time.
What is the expense ratio for VTI vs VXUS?
VTI has an expense ratio of 0.03%, while VXUS has an expense ratio of 0.05%. Both are among the lowest-cost ETFs available.
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Last updated: 3/15/2026