{"id":334,"date":"2022-01-17T00:32:12","date_gmt":"2022-01-17T00:32:12","guid":{"rendered":"https:\/\/investorimpactlab.com\/?p=334"},"modified":"2022-01-17T00:32:12","modified_gmt":"2022-01-17T00:32:12","slug":"veu-vs-vxus","status":"publish","type":"post","link":"https:\/\/investorimpactlab.com\/veu-vs-vxus\/","title":{"rendered":"VEU vs. VXUS – Which Is the Better International ETF For Your Portfolio?"},"content":{"rendered":"\n
If you are unsure where to pitch your tent between VXUS and VEU – two popular Vanguard funds, this article is for you. Like many other investors looking for answers, this VEU and VXUS comparison will let you know your options and put you in a good position to decide which is best for you.<\/p>\n\n\n\n
Are you in a hurry? Here are the critical points of the article.<\/p>\n\n\n\n
We are all investors with almost the same end goal – to make profits. But even at that, our interests clearly are not the same and this is what drives our product or trading strategy. For instance, some investors prefer index funds to mutual funds for the apparent reason of diversification. Within the index funds investors, we have investors who only want to put their money into the stock market of specific regions, e.g., European stocks, Asia Pacific stocks. Others want more extensive coverage, such as the international stock market.<\/p>\n\n\n\n
Going further down, we can also identify investors who prefer to invest in global stocks but without United States companies. This is the group of people who would most likely have a hard time choosing between the Vanguard FTSE All-World ex-US ETF (VEU)<\/a> and Vanguard Total International Stock ETF (VXUS)<\/a>.<\/p>\n\n\n\n These two low-cost exchange-traded funds (ETFs) are from the same issuer – Vanguard – and focus on the same market aspect, which are international stocks other than the United States stocks. Naturally, you are still putting your money on companies outside the U.S., whichever you end up with. But as you would expect, both ETFs are not precisely the same, which is why we are having this conversation.<\/p>\n\n\n\n For example, they do not hold the same number of stocks, and their portfolio compositions are also different. One essentially contains the other in it. They both track different underlying indexes, and most importantly, their performance over time has been very different.<\/p>\n\n\n\n I have expatiated on the differences and similarities of both VEU and VXUS in the subsequent sections of this article, in terms of composition, historical performance, fees, tax efficiency, risks and volatility, and other important factors.<\/p>\n\n\n\n Vanguard FTSE All-World ex-US ETF (VEU) debuted on 2 March 2007, while Vanguard Total International Stock ETF (VXUS) only came into the picture about four years later, on 26 January 2011. Interestingly, the older of the two has a smaller composition. VEU currently holds about 3,500 stocks, while VXUS has more than double that number at over 7,700 stocks.<\/p>\n\n\n\nVEU vs. VXUS – Differences in Composition<\/strong><\/h2>\n\n\n\n
Composition Differences<\/strong><\/h3>\n\n\n\n