VTWO vs VXUS
VTWO vs VXUS
Vanguard Russell 2000 ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VTWO delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | VTWO | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.05% | |
| AUM | $17.9B | $156.5B | |
| Dividend Yield | 1.39% | 2.60% | |
| Holdings | 1,970 | 8,747 | |
| YTD Return | +21.83% | +14.57% | |
| 1Y Return | +38.81% | +27.82% | |
| 3Y Return (annualized) | +17.59% | +19.27% | |
| 5Y Return (annualized) | +7.82% | +9.28% | |
| Volatility (annualized) | 19.1% | 15.1% | |
| Max Drawdown | -42.4% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2010 | Jan 26, 2011 |
VTWO vs VXUS Performance
Vanguard Russell 2000 ETF (VTWO) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VTWO returned +38.81% while VXUS returned +27.82%. Year to date, VTWO is up 21.83% versus a gain of 14.57% for VXUS.
Over three years, VTWO compounded at +17.59% per year against +19.27% for VXUS; over five years the annualized figures are +7.82% and +9.28% respectively. Across the full 16-year window we track, VTWO has the edge at +10.77% annualized vs +4.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTWO has been the more volatile fund, with annualized monthly volatility of 19.1% compared with 15.1% 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 1.39% against 2.60% for VXUS.
Holdings Overlap
VTWO and VXUS share 20 holdings out of 9784 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VTWO | Weight in VXUS | Difference |
|---|---|---|---|
| ESE | 0.23% | 0.00% | 0.23% |
| SSRM:CA | 0.21% | 0.01% | 0.20% |
| BIMAS:TR | 0.19% | 0.01% | 0.18% |
| UUUU:CA | Pro | Pro | Pro |
| SIG | Pro | Pro | Pro |
| MTX:SG | Pro | Pro | Pro |
| FBK | Pro | Pro | Pro |
| PPTA:CA | Pro | Pro | Pro |
| CASH | Pro | Pro | Pro |
| AXL | Pro | Pro | Pro |
See all 10 holdings VTWO shares with VXUS Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
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. On a $10,000 investment, that is $1 per year of difference.
Which performed better, VTWO or VXUS?
Over the past year VTWO returned +38.81% vs +27.82% for VXUS, so VTWO leads on 1-year performance. Over the longest common window we track (16 years), VTWO annualized +10.77% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, VTWO or VXUS?
VTWO has been the more volatile fund at 19.1% annualized versus 15.1% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTWO and VXUS?
VTWO and VXUS share 20 common holdings with a 0.1% weight overlap. Combined, they hold 9784 unique securities.
Which pays a higher dividend, VTWO or VXUS?
VTWO yields 1.39% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.
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