VUG vs VXUS

VUG vs VXUS

Which is better, VUG or VXUS?

Large Cap Growth against Large Cap Blend.

VUG has a lower expense ratio. VUG led over 3Y, 5Y and the full window, VXUS over 1Y.

Lower Fees: VUGHigher Returns: split

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

MetricVUGVXUS
Expense Ratio0.03%Best0.05%
AUM$219.5B$158.1B
Dividend Yield0.38%2.51%
Holdings1468,747
YTD Return+9.37%+13.64%Best
1Y Return+12.52%+20.82%Best
3Y Return (annualized)+23.86%Best+19.58%
5Y Return (annualized)+12.49%Best+9.14%
Volatility (annualized)16.6%15.0%Best
Max Drawdown-35.6%Best-39.9%
$10,000 over 5 years$18,012Best$15,485
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
StyleLarge Cap GrowthLarge Cap Blend
InceptionJan 26, 2004Jan 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 17, 2026 (15.6 years).

VUG 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.

VUG vs VXUS Performance

Vanguard Morningstar Growth ETF (VUG) is an ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is an ETF from Vanguard (US). Over the past year VUG returned +12.52% while VXUS returned +20.82%. Year to date, VUG is up 9.37% versus a gain of 13.64% for VXUS.

Over three years, VUG compounded at +23.86% per year against +19.58% for VXUS; over five years the annualized figures are +12.49% and +9.14% respectively. Across the full 16-year window we track, VUG has the edge at +14.93% annualized vs +4.77%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VUG has been the more volatile fund, with annualized monthly volatility of 16.6% 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 -35.6% for VUG 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 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VUG charges 0.03% per year while VXUS charges 0.05%. On a $10,000 position that is $3 vs $5 annually, a gap of $2 per year that compounds over a long holding period. On income, VUG currently yields 0.38% against 2.51% for VXUS.

Holdings Overlap

VUG already in VXUS0.2%

At least 0.2% of VUG's money is in holdings VXUS also owns.

Stated as a floor: for VXUS, our book for it covers 88.8% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

We cannot see either book well enough to say how much of this pair is duplicated.

2 positions in common, counted across the 147 positions we hold weights for in VUG and 8,082 in VXUS, against full books of 146 and 8,747.

Top Shared Holdings

StockWeight in VUGWeight in VXUSDifference
WCN:CAWaste Connections Inc Common Stock Cad 00.14%0.09%0.05%
SUNBSunbelt Rentals0.06%0.07%0.01%

You are not choosing between two funds in isolation.

Whichever of VUG and VXUS you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

VUGVXUS

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Frequently Asked Questions

Which is cheaper, VUG or VXUS?

VUG has an expense ratio of 0.03% while VXUS charges 0.05%. VUG is the cheaper option, by $2 a year on a $10,000 investment.

Which performed better, VUG or VXUS?

Over the past year VUG returned +12.52% vs +20.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VUG annualized +14.93% vs +4.77% for VXUS. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, VUG or VXUS?

VUG has been the more volatile fund at 16.6% annualized versus 15.0% for VXUS. Worst drawdown: VUG -35.6% vs VXUS -39.9%.

Should I hold both VUG and VXUS?

VUG and VXUS have a monthly-return correlation of 0.76, 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, VUG or VXUS?

VUG yields 0.38% while VXUS yields 2.51%, so VXUS currently pays the higher dividend yield.

Is VXUS better than VUG?

VUG has a lower expense ratio. VUG led over 3Y, 5Y and the full window, VXUS over 1Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.