VTI vs VXUS: How Much International Exposure Do You Need?
VTI and VXUS are complementary funds that together cover the entire global equity market. VTI holds ~3,600 US stocks across all market caps. VXUS holds ~8,500 international stocks from developed and emerging markets. The classic 60/40 or 70/30 VTI/VXUS split is one of the simplest and most effective global equity portfolios.
Key Differences
- VTI: 100% US stocks; VXUS: 0% US stocks — together they approximate VT (total world)
- US stocks have outperformed international over the last 15 years, but this trend has historically reversed in cycles
- VXUS provides currency diversification away from USD
- Correlation between VTI and VXUS has increased over time but remains below 1.0, providing diversification benefit
- Vanguard's own recommendation: roughly 40% international allocation based on global market-cap weights
Live Comparison
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Bottom Line
Most investors benefit from holding both. The exact split depends on your views on US vs global growth, but a 60-70% VTI / 30-40% VXUS allocation is a well-supported starting point backed by decades of portfolio theory.
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Disclaimer: This comparison is for informational and educational purposes only. It does not constitute investment advice. Past performance does not guarantee future results. ETF data is sourced from Yahoo Finance and issuer websites. Always verify current data before making investment decisions.