VEU Vs. VXUS: A Comparison of Two ETFs

What is a good investment strategy? If you want to diversify your investments, what assets should you consider? Let’s check VEU vs. VXUS and see which one is a better fit for your investment needs.

VEU: Vanguard FTSE All-World ex-US ETF

Vanguard FTSE All-World ex-US ETF (VEU) was established in 2007 and seeks to track the FTSE All-World ex-US Index. The goal of this index is to perform in the same way as the international stock markets.

VXUS: Vanguard Total International Stock Index Fund ETF

Launched in 2011, the Vanguard Total International Stock Index Fund ETF (VXUS) seeks to track the performance of the FTSE Global All Cap ex-US Index, which calculates the returns on investment of the stocks that are issued by the company that is domiciled outside the US.

VEU Vs. VXUS: Key Differences

Fund Followed VXUS follows the Global All Cap ex-US Index. This is a FTSE Global Index subset. On the other hand, the FTSE All-World ex-US Index is only followed by VEU. That means no fund tracks the whole FTSE Global Index.

Stock Composition

VXUS has a small percentage of small-capitalization stocks, while VEU excludes them completely. This means that essentially VEU is part of VXUS.

Fund Size

The size of the fund is a good indicator of the confidence that investors have in a fund. Both of these funds can be categorized as large funds.

Fund Diversification

VXUS manages assets worth over $390 billion and ranks in the top 50 biggest ETFs in the world. It consists of over 7,500 securities of companies from all over the world. VEU, on the other hand, manages assets worth over $36.7 billion and has over 3,500 securities.

VEU Vs. VXUS: Composition Differences

VXUS consists of 3,557 international small-cap stocks. This is an indication that VEU is a subset of VXUS. In other words, VXUS features all the 2,857 stocks that are in VEU and another 3,557 small-cap stocks.

Swipe up now to read the full post!