VTWO vs VXUS
Vanguard Russell 2000 ETF vs Vanguard Total International Stock ETF
Which is better, VTWO or VXUS?
Small Cap Blend against Large Cap Blend.
VXUS has a lower expense ratio. VTWO led over the full window, VXUS over 1Y, 3Y and 5Y.
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 | VTWO | VXUS |
|---|---|---|
| Expense Ratio | 0.06% | 0.05%Best |
| AUM | $17.5B | $158.1B |
| Dividend Yield | 1.10% | 2.51% |
| Holdings | 2,015 | 8,747 |
| YTD Return | +15.72%Best | +14.49% |
| 1Y Return | +18.24% | +21.52%Best |
| 3Y Return (annualized) | +19.08% | +20.55%Best |
| 5Y Return (annualized) | +7.15% | +9.57%Best |
| Volatility (annualized) | 19.2% | 15.0%Best |
| Max Drawdown | -42.4% | -39.9%Best |
| $10,000 over 5 years | $14,124 | $15,793Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Blend |
| Inception | Sep 20, 2010 | Jan 26, 2011 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jan 28, 2011 to Sep 21, 2026 (15.6 years).
VTWO 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 15.6 years both funds cover.
VTWO vs VXUS Performance
Vanguard Russell 2000 ETF (VTWO) is an ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year VTWO returned +18.24% while VXUS returned +21.52%. Year to date, VTWO is up 15.72% versus a gain of 14.49% for VXUS.
Over three years, VTWO compounded at +19.08% per year against +20.55% for VXUS; over five years the annualized figures are +7.15% and +9.57% respectively. Across the full 16-year window we track, VTWO has the edge at +9.39% annualized vs +4.82%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTWO has been the more volatile fund, with annualized monthly volatility of 19.2% compared with 15.0% for VXUS. 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 -42.4% for VTWO and -39.9% 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 0.77. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VTWO charges 0.06% per year while VXUS charges 0.05%. On a $10,000 position that is $6 vs $5 annually, a gap of $1 per year that compounds over a long holding period. On income, VTWO currently yields 1.10% against 2.51% for VXUS.
Holdings Overlap
We hold position weights for 1,633 holdings in VTWO and 8,082 in VXUS, totalling 89.7% and 88.8% 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, 10 positions appear in both.
10 positions in common, counted across the 1,633 positions we hold weights for in VTWO and 8,082 in VXUS, against full books of 2,015 and 8,747.
Top Shared Holdings
| Stock | Weight in VTWO | Weight in VXUS | Difference |
|---|---|---|---|
| SSRMSsr Mining Inc | 0.18% | 0.01% | 0.17% |
| BIPCBrookfield Infrastructure Corporation Class A Ordinary Shares - Subordinate Voting Shares | 0.17% | 0.01% | 0.16% |
| SIG:LNSignet Jewelers Limited Common Shares | 0.12% | 0.02% | 0.10% |
| FBKFb Financial Corp | 0.08% | 0.04% | 0.04% |
| EFR:CAEnergy Fuels Inc | 0.09% | 0.01% | 0.08% |
| BBUC:CABrookfield Business Partners Lp Unit Ltd Partnership | 0.07% | 0.00% | 0.07% |
| CASHMeta Financial Group Inc | 0.06% | 0.00% | 0.06% |
| PPTA:CAPerpetua Resources Corp | 0.05% | 0.00% | 0.05% |
| RAILFreightcar America Inc | 0.00% | 0.05% | 0.05% |
| MDVModiv Industrial Inc | 0.01% | 0.00% | 0.01% |
You are not choosing between two funds in isolation.
Whichever of VTWO 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, VTWO or VXUS?
VTWO has an expense ratio of 0.06% while VXUS charges 0.05%. VXUS is the cheaper option, by $1 a year on a $10,000 investment.
Which performed better, VTWO or VXUS?
Over the past year VTWO returned +18.24% vs +21.52% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VTWO annualized +9.39% vs +4.82% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTWO or VXUS?
VTWO has been the more volatile fund at 19.2% annualized versus 15.0% for VXUS. Worst drawdown: VTWO -42.4% vs VXUS -39.9%.
Should I hold both VTWO and VXUS?
VTWO and VXUS have a monthly-return correlation of 0.77, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VTWO or VXUS?
VTWO yields 1.10% while VXUS yields 2.51%, so VXUS currently pays the higher dividend yield.
Is VXUS better than VTWO?
VXUS has a lower expense ratio. VTWO led over the full window, VXUS over 1Y, 3Y and 5Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.