VWO vs VXUS
Vanguard FTSE Emerging Markets ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | VWO | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.05% | |
| AUM | $122.3B | $156.5B | |
| Dividend Yield | 2.37% | 2.60% | |
| Holdings | 6,334 | 8,747 | |
| YTD Return | +10.22% | +14.57% | |
| 1Y Return | +22.27% | +27.82% | |
| 3Y Return (annualized) | +17.07% | +19.27% | |
| 5Y Return (annualized) | +6.56% | +9.28% | |
| Volatility (annualized) | 20.1% | 15.1% | |
| Max Drawdown | -68.3% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 4, 2005 | Jan 26, 2011 |
VWO vs VXUS Performance
Vanguard FTSE Emerging Markets ETF (VWO) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VWO returned +22.27% while VXUS returned +27.82%. Year to date, VWO is up 10.22% versus a gain of 14.57% for VXUS.
Over three years, VWO compounded at +17.07% per year against +19.27% for VXUS; over five years the annualized figures are +6.56% and +9.28% respectively. Across the full 16-year window we track, VWO has the edge at +4.99% annualized vs +4.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VWO has been the more volatile fund, with annualized monthly volatility of 20.1% 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 -68.3% for VWO 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
VWO 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, VWO currently yields 2.37% against 2.60% for VXUS.
Holdings Overlap
VWO and VXUS share 3517 holdings out of 8326 unique holdings combined, representing a 19.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VWO | Weight in VXUS | Difference |
|---|---|---|---|
| 2330:TW | 12.61% | 3.41% | 9.20% |
| 0700:KY | 3.42% | 0.92% | 2.50% |
| 9988:HK | 2.71% | 0.73% | 1.98% |
| HDB:MB | Pro | Pro | Pro |
| RELIANCE:MB | Pro | Pro | Pro |
| 2317:TW | Pro | Pro | Pro |
| 2454:TW | Pro | Pro | Pro |
| 2308:TW | Pro | Pro | Pro |
| ICICIBANK:MB | Pro | Pro | Pro |
| PDD | Pro | Pro | Pro |
Frequently Asked Questions
Which is cheaper, VWO or VXUS?
VWO 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, VWO or VXUS?
Over the past year VWO returned +22.27% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VWO annualized +4.99% vs +4.86% for VXUS. Past performance does not guarantee future results.
Which is riskier, VWO or VXUS?
VWO has been the more volatile fund at 20.1% annualized versus 15.1% for VXUS. Worst drawdown: VWO -68.3% vs VXUS -39.9%.
Should I hold both VWO and VXUS?
VWO and VXUS have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between VWO and VXUS?
VWO and VXUS share 3517 common holdings with a 19.3% weight overlap. Combined, they hold 8326 unique securities.
Which pays a higher dividend, VWO or VXUS?
VWO yields 2.37% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.
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