VUG vs VXUS
VUG vs VXUS
Vanguard Growth ETF vs Vanguard Total International Stock ETF
Quick Verdict
VUG has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.
Side-by-Side Comparison
| Metric | VUG | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.05% | |
| AUM | $223.2B | $156.5B | |
| Dividend Yield | 0.47% | 2.60% | |
| Holdings | 155 | 8,747 | |
| YTD Return | +9.74% | +13.65% | |
| 1Y Return | +18.90% | +28.53% | |
| 3Y Return (annualized) | +23.80% | +18.64% | |
| 5Y Return (annualized) | +12.79% | +9.00% | |
| Volatility (annualized) | 16.5% | 15.1% | |
| Max Drawdown | -51.4% | -39.9% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Jan 26, 2011 |
VUG vs VXUS Performance
Vanguard Growth ETF (VUG) is a ETF from Vanguard (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year VUG returned +18.90% while VXUS returned +28.53%. Year to date, VUG is up 9.74% versus a gain of 13.65% for VXUS.
Over three years, VUG compounded at +23.80% per year against +18.64% for VXUS; over five years the annualized figures are +12.79% and +9.00% respectively. Across the full 16-year window we track, VUG has the edge at +11.27% annualized vs +4.81%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VUG has been the more volatile fund, with annualized monthly volatility of 16.5% 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 -51.4% for VUG 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 0.76. 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 0.47% against 2.60% for VXUS.
Holdings Overlap
VUG and VXUS share 2 holdings out of 8004 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VUG or VXUS?
Over the past year VUG returned +18.90% vs +28.53% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), VUG annualized +11.27% vs +4.81% for VXUS. Past performance does not guarantee future results.
Which is riskier, VUG or VXUS?
VUG has been the more volatile fund at 16.5% annualized versus 15.1% for VXUS. Worst drawdown: VUG -51.4% vs VXUS -39.9%.
Should I hold both VUG and VXUS?
VUG and VXUS have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VUG and VXUS?
VUG and VXUS share 2 common holdings with a 0.1% weight overlap. Combined, they hold 8004 unique securities.
Which pays a higher dividend, VUG or VXUS?
VUG yields 0.47% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.
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