Which Vanguard ETF Offers Superior International Exposure: VWO or VXUS?

Brendan Coffey, The Motley Fool

Mon, June 29, 2026 astatine 10:33 AM CDT 5 min read

The Vanguard FTSE Emerging Markets ETF (NYSEMKT:VWO) provides concentrated vulnerability to processing economies with a important exertion tilt, whereas Vanguard Total International Stock ETF (NASDAQ:VXUS) offers broad-market sum including some developed and emerging nations.

Selecting betwixt these 2 Vanguard heavyweights depends connected whether an capitalist seeks circumstantial vulnerability to high-growth processing markets oregon a broader, all-encompassing planetary strategy. While some funds supply diversification extracurricular the United States, they alteration importantly successful their geographic focus, assemblage weights, and humanities hazard profiles. Let's instrumentality a deeper dive.

Snapshot (cost & size)

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months. Dividend output is the trailing-12-month organisation output based connected the closing terms of June 26.

Both funds are highly cost-efficient, though the Vanguard Total International Stock ETF carries a somewhat little disbursal ratio of 0.05% compared to 0.06% for its emerging markets counterpart. The broader money besides provides a marginally higher payout for income-seeking investors.

Performance & hazard examination

What's wrong

The Vanguard FTSE Emerging Markets ETF focuses connected companies successful processing economies similar China, Brazil, and Taiwan. Its largest positions see Taiwan Semiconductor Manufacturing Co. Ltd. (TWSE:2330) astatine 14.69%, Tencent Holdings Ltd. (SEHK:700) astatine 2.75%, and Alibaba Group Holding Ltd. (SEHK:9988) astatine 2.26%. The money holds 6,348 securities and leans heavy toward technology, which comprises 32.8% of the portfolio, followed by fiscal services astatine 19% and user cyclical astatine 9.9%. VWO was launched successful 2005. The Vanguard FTSE Emerging Markets ETF has paid $1.38 per stock implicit the trailing 12 months, which, connected its caller ~$58.58 stock price, works retired to a 2.40% yield.

In contrast, the Vanguard Total International Stock ETF tracks a overmuch broader scale of 8,738 stocks crossed developed and emerging markets, excluding the U.S. Its apical holdings see Taiwan Semiconductor astatine 3.89%, Samsung Electronics Co. Ltd. (KOSE:A005930) astatine 2.19%, and SK Hynix Inc. (KOSE:A000660) astatine 1.86%. This portfolio is much balanced crossed sectors, led by fiscal services astatine 21.7%, exertion astatine 21.04%, and industrials astatine 15.6%. VXUS was launched successful 2011. The Vanguard Total International Stock ETF has paid $2.19 per stock implicit the trailing 12 months, which connected its caller ~$84.48 stock terms works retired to a 2.60% yield.