VTWAX vs VXUS
Vanguard Total World Stock Index Fund Admiral Class vs Vanguard Total International Stock ETF
Which is better, VTWAX or VXUS?
VTWAX has been ahead.
VXUS has a lower expense ratio. VTWAX led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VTWAX | VXUS |
|---|---|---|
| Expense Ratio | 0.09% | 0.05%Best |
| AUM | $12.1B | $164.9B |
| Dividend Yield | 1.52% | 2.51% |
| Holdings | 10,039 | 8,844 |
| YTD Price Return | +12.19%Best | +10.45% |
| 1Y Price Return | +16.04%Best | +15.38% |
| 3Y Price Return (annualized) | +19.58%Best | +16.53% |
| 5Y Price Return (annualized) | +8.79%Best | +5.70% |
| Volatility (annualized) | 15.0%Best | 15.3% |
| Max Drawdown | -28.0%Best | -31.2% |
| $10,000 over 5 years | $15,239Best | $13,194 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Feb 7, 2019 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Returns are price returns and exclude distributions, because our data feed carries no adjusted close for VTWAX. Both funds are measured the same way, so the comparison holds. VTWAX yields 1.52% and VXUS 2.51% on top.
Volatility and max drawdown are measured over the window both funds cover: Oct 14, 2021 to Oct 12, 2026 (5 years).
VTWAX vs VXUS growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5 years both funds cover. Prices exclude distributions, on both funds alike.
VTWAX vs VXUS Performance
Vanguard Total World Stock Index Fund Admiral Class (VTWAX) is a mutual fund from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year VTWAX returned +16.04% while VXUS returned +15.38%. Year to date, VTWAX is up 12.19% versus a gain of 10.45% for VXUS.
Over three years, VTWAX compounded at +19.58% per year against +16.53% for VXUS; over five years the annualized figures are +8.79% and +5.70% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 15.0% for VTWAX. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -28.0% for VTWAX and -31.2% for VXUS. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.92. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VTWAX charges 0.09% per year while VXUS charges 0.05%. On a $10,000 position that is $9 vs $5 annually, a gap of $4 per year that compounds over a long holding period. On income, VTWAX currently yields 1.52% against 2.51% for VXUS.
Structure and taxes
VTWAX is a mutual fund and VXUS is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 9,801 holdings in VTWAX and 8,082 in VXUS, totalling 91.0% and 89.3% of the two funds. Neither is a share of a fund we can divide by, so no overlap percentage is shown here. Within what we can see, 6,805 positions appear in both.
The two holdings books were reported 181 days apart, VTWAX as of Jan 31, 2026 and VXUS as of Jul 31, 2026, so some of the difference between them is the time between the two reports rather than the funds.
6,805 positions in common, counted across the 9,801 positions we hold weights for in VTWAX and 8,082 in VXUS, against full books of 10,039 and 8,844.
Top Shared Holdings
| Stock | Weight in VTWAX | Weight in VXUS | Difference |
|---|---|---|---|
| ASML:ASASML HOLDING NV | 0.52% | 1.42% | 0.90% |
| 5930:JPBunka Shutter Co Ltd | 0.00% | 1.80% | 1.80% |
| 000660:KRSk Hynix Inc Common Stock KRW 5000 | 0.31% | 1.41% | 1.10% |
| HSBA:LNHsbc Securities Inc | 0.28% | 0.82% | 0.54% |
| 9988:HKAlibaba Group Holding, Ltd. | 0.35% | 0.62% | 0.27% |
| NOVN:SMNovartis Ag – Class N | 0.26% | 0.65% | 0.39% |
| RY:CARoyal Bank of Canada | 0.22% | 0.66% | 0.44% |
| AZN:LNAstraZeneca PLC | 0.26% | 0.57% | 0.31% |
| NESN:SMNestle Sa | 0.22% | 0.58% | 0.36% |
| MKLMarkel Group Inc | 0.02% | 0.76% | 0.74% |
You are not choosing between two funds in isolation.
Whichever of VTWAX and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VTWAX or VXUS?
VTWAX has an expense ratio of 0.09% while VXUS charges 0.05%. VXUS is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, VTWAX or VXUS?
Over the past year VTWAX returned +16.04% vs +15.38% for VXUS, so VTWAX leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTWAX or VXUS?
VXUS has been the more volatile fund at 15.3% annualized versus 15.0% for VTWAX. Worst drawdown: VTWAX -28.0% vs VXUS -31.2%.
Should I hold both VTWAX and VXUS?
VTWAX and VXUS have a monthly-return correlation of 0.92, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, VTWAX or VXUS?
VTWAX yields 1.52% while VXUS yields 2.51%, so VXUS currently pays the higher dividend yield.
Is it better to hold VTWAX or VXUS in a taxable account?
VXUS is an ETF and VTWAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VXUS better than VTWAX?
VXUS has a lower expense ratio. VTWAX led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.92. Which one suits a particular account depends on what it is for. This is information, not a recommendation.