We’ll take a look at some of the differences and similarities between VXUS and VEU in this article. VEU vs. VXUS: Differences in Composition. See the master list of all thematic investing ETF themes here. This means that VEU is just a subset of VXUS. The main difference between VXUS vs. VEU is the number of holdings and the regional allocation of assets. Find the best ETF, compare ETF Facts, Performance, Portfolio, Factors, and ESG metrics in one place. Risk adjusted return comparisons can be made with the help of All information on this site is for informational and educational purposes only.
In other words, the weight of small-, mid- and large-cap companies in each fund.
The remaining allocations are distributed among North America, namely Canada and Mexico, Middle Eastern countries and several others.eval(ez_write_tag([[300,250],'mrmarvinallen_com-large-leaderboard-2','ezslot_1',111,'0','0'])); Regional allocation for VEU looks surprisingly similar. For you, as a prudent long-term investor, this just means you can worry less about which exact international fund you are going to pick. The weight of each region roughly equates to the sum of GDP of the respective countries. Overall, both VXUS and VEU provide a solid diversification in global stocks. VXUS and VEU are both issued by Vanguard. See our independently curated list of ETFs to play this theme here. Comparing this to the distribution domestically we are looking at percentages closer to one-quarter of all companies. This tool allows investors to analyze ETF issuer fund flow data.
Today I want to explore two potential total international ex-U.S. stock market ETFs that you can invest in through Vanguard, my preferred investment platform. For one, they essentially operate at cost and redistribute all profits made from managing the funds back into the funds. Nonetheless, both of these funds provide excellent exposure to the international non-US market so they are worth having a closer look at:eval(ez_write_tag([[468,60],'mrmarvinallen_com-box-3','ezslot_13',106,'0','0'])); We’ll take a look at some of the differences and similarities between VXUS and VEU in this article. No matter which investment platform you decide to use, you should easily be able to find low-cost total international stock market funds to invest in. Almost one-quarter of VXUS securities are in emerging markets at 23.5%. ETF Stock Exposure Tool allows investors to identify ETFs that have significant exposure to a selected equity security. What if You Only Bought Stocks After the Market Had a Down Year. all have ETFs that are similar to the Vanguard ETFs I wrote about in this post. Recently Meb Faber shared an excellent tweetstorm on international investing that covered three main points: Check out this post where I explore Meb’s tweetstorm in greater detail. If you want to invest in international stocks yourself, the simplest way to do so is through buying a total international ex-U.S. stock market fund. I personally prefer to invest in VXUS since it offers more diversification with small cap stocks. Vanguard FTSE All-World ex-US ETF (VEU) The Vanguard FTSE All-World ex-US ETF was the largest … Results are displayed beginning with the equity ETF that makes the largest allocation to indicated stock. VXUS has some $17.5B assets under management putting it among the top 50 largest ETFs worldwide. VEU vs VXUS ETF comparison analysis. Other reasons to become an ETFdb Pro member: Here’s what our ETFdb analysts have to say about VEU and VXUS. Neither MSCI ESG nor any of its affiliates or any third party involved in or related to creating any Information makes any express or implied warranties, representations or guarantees, and in no event will MSCI ESG or any such affiliate or third party have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) relating to any Information. It may be the case that at one point in time VXUS is slightly ahead of VEU to the other way around but in the long-term it will not affect your returns. See our independently curated list of ETFs to play this theme here. VXUS vs VEU. Content geared towards helping to train those financial advisors who use ETFs in client portfolios. The following table shows the annual returns for the index that each ETF seeks to track since 2003: As you can see, the two ETFs offer extremely similar returns. In general, VXUS offered slightly higher annual returns during this time frame along with slightly higher volatility. Read more. Both international funds provide a very similar overall return. Sharing insights on how to grow wealth and gain freedom. In fact, after reading the research I personally decided to switch my investment allocation in my 401(k) (that is. Bond ETFs on the other hand, The table below compares many ETF metrics between VEU and VXUS. VXUS has a lower 5-year return than VEU (6.07% vs 6.15%).
Taking into account that VEU is 4 years older, VXUS has been catching up fast. This is index has the exact same goal the one above: mirroring the performance of the international stock markets. If we take a look at the drawdowns represented visually, we’ll get a better idea of how this might affect our portfolio on an annual basis.eval(ez_write_tag([[300,250],'mrmarvinallen_com-large-mobile-banner-1','ezslot_0',113,'0','0'])); In some instances we can see the blue line representing VXUS peak out of under the red one, presenting VEU. The large-cap values are similar to that of the entire U.S. stock market, however, mid-cap companies represent a significantly higher share of the pie. I simply chose to use the Vanguard versions of these ETFs since it’s my investment platform of choice. This is one of the biggest caveats of VEU. And what has all of this led to? ESG Investing is the consideration of environmental, social and governance factors alongside financial factors in the investment decision–making process. Conversely, VXUS holds 6,414 stocks because it also holds large cap and mid cap international stocks. Each month he uses their free Investment Checkup tool and Retirement Planner to track his investments and ensure that he's on the fast track to financial freedom.His favorite investment platform is M1 Finance, a site that allows him to build a custom portfolio of stocks for free, has no trading or maintenance fees, and even allows him to set up automated target-allocated investments. Export to CSV and Compare ETF Holdings With ETFdb.com Pro.
It’s up to you if you would like to stomach slightly more volatility for higher returns over the long haul or not. Of course, as investors out primary goal when picking a fund tends to be the return on investment. However, this index only includes around 3,400 companies. None of the Information can be used to determine which securities to buy or sell or when to buy or sell them. Nearly 75% of VXUS’s holdings are large-cap companies. Coinbase vs. Coinbase Pro: What’s The Difference? Follow a simple three-fund portfolio strategy – ideally with a commission-free innovative broker such as M1 Finance – and you should be all set! They both experience years of positive and negative returns in lockstep. See our independently curated list of ETFs to play this theme here. See all Thematic Investing ETF themes ». The Vanguard Total International Stock ETFs (VXUS) tracks the MSCI All Country World ex USA Investable Market Index. In comparing these two indices, the biggest difference has already become obvious: the number of holdings. can help investors avoid illiquid ETFs. And no matter what portion of your portfolio you decide to allocate towards international stocks, you’ll have to answer a simple question: Which international fund should you invest in? It’s the green or gray dried flowers of Cannabis sativa. Screen ETFs based on asset class, issuer, market cap, expense ratio, and more. From historical performance to expenses to volatility, the, Get Actionable ETF Investment Ideas every week with, Additional export capabilities to Excel or csv on any. Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer. Portfolio Diversification Isn't Dead, It Was Just Sleeping, MSCI All Country World ex USA Investable Market Index, Revenue Exposure to Environmental Impact (%), Weighted Average Carbon Intensity (Tons of CO2e / $M Sales), Water Stress High Risk Business Segment (%), Revenue Exposure to Energy Efficiency (%), Revenue Exposure to Alternative Energy (%), Revenue Exposure to Pollution Prevention (%), Revenue Exposure to Water Sustainability (%), Revenue Exposure to Affordable Real Estate (%), Revenue Exposure to Major Disease Treatment (%), Human Rights Norms Violation OR Watch List (%), Global Compact Compliance Violation OR Watch List (%), Significant Votes Against Pay Practices (%). Both VXUS and VEU are ETFs. In this section we’ll take a lot at another distinguishing factor between VXUS and VEU: Equity Market Capitalization. See the latest ETF news here. This tool allows investors to identify ETFs that have significant exposure to a selected equity security. Compare your broker's rates now to find out if you can save money, We are redirecting you to the Broker Center now. Rather than buying several individual funds that gave me exposure to specific regions like European stocks, Asia Pacific stocks, etc. The reason that VEU only holds 2,857 stocks is because it only holds large cap and mid cap international stocks. Compare these These differences are not per se good or bad. ETFdb’s Country Exposure Tool allows investors to identify equity ETFs that offer exposure to a specified country.