Vanguard’s global ETFs offer similar low fees but diverge on US inclusion and dividend yields for investors.
Vanguard Total World Stock ETF (VT) and Total International Stock ETF (VXUS) provide broad equity diversification at nearly identical costs. VT includes US and international stocks, while VXUS excludes US firms, appealing to investors avoiding domestic overlap.
Both funds charge expense ratios differing by just 0.01 percentage points, equating to $0.10 per $1,000 invested annually. VXUS currently offers a higher dividend yield, reflecting foreign markets’ emphasis on distributions over US growth sectors.
VT holds 10,024 stocks, with 31% in technology, 16% in financial services, and 12% in industrials, spanning global markets comprehensively.