The Vanguard Total International Stock Index Fund ETF Shares (VXUS) and the Vanguard Extended Market Index Fund ETF Shares (VXF) are both among the Top 100 ETFs. VXUS is a Vanguard Foreign Large Blend fund and VXF is a Vanguard Mid-Cap Growth fund. So, what’s the difference between VXUS and VXF? And which fund is better?
The expense ratio of VXUS is 0.02 percentage points higher than VXF’s (0.08% vs. 0.06%). VXUS also has a higher exposure to the financial services sector and a lower standard deviation. Overall, VXUS has provided lower returns than VXF over the past ten years.
In this article, we’ll compare VXUS vs. VXF. We’ll look at holdings and annual returns, as well as at their performance and fund composition. Moreover, I’ll also discuss VXUS’s and VXF’s industry exposure, portfolio growth, and risk metrics and examine how these affect their overall returns.
FYI: Another great way to get exposure to the real estate sector is by investing in real estate debt. Groundfloor offers fantastic short-term, high-yield bonds that can add diversification to your portfolio!
Summary
| VXUS | VXF | |
| Name | Vanguard Total International Stock Index Fund ETF Shares | Vanguard Extended Market Index Fund ETF Shares |
| Category | Foreign Large Blend | Mid-Cap Growth |
| Issuer | Vanguard | Vanguard |
| AUM | 404.73B | 114.53B |
| Avg. Return | 8.41% | 15.47% |
| Div. Yield | 2.44% | 1.19% |
| Expense Ratio | 0.08% | 0.06% |
The Vanguard Total International Stock Index Fund ETF Shares (VXUS) is a Foreign Large Blend fund that is issued by Vanguard. It currently has 404.73B total assets under management and has yielded an average annual return of 8.41% over the past 10 years. The fund has a dividend yield of 2.44% with an expense ratio of 0.08%.
The Vanguard Extended Market Index Fund ETF Shares (VXF) is a Mid-Cap Growth fund that is issued by Vanguard. It currently has 114.53B total assets under management and has yielded an average annual return of 15.47% over the past 10 years. The fund has a dividend yield of 1.19% with an expense ratio of 0.06%.
VXUS’s dividend yield is 1.25% higher than that of VXF (2.44% vs. 1.19%). Also, VXUS yielded on average 7.07% less per year over the past decade (8.41% vs. 15.47%). The expense ratio of VXUS is 0.02 percentage points higher than VXF’s (0.08% vs. 0.06%).
FYI: The best way I've found to invest is through M1 Finance. It's free and you even get an instant line of credit and 100$! Have a look here (link to M1 Finance).
Fund Composition
Industry Exposure
| VXUS | VXF | |
| Technology | 13.07% | 23.61% |
| Industrials | 12.94% | 11.31% |
| Energy | 4.55% | 2.46% |
| Communication Services | 7.06% | 7.29% |
| Utilities | 2.94% | 1.65% |
| Healthcare | 9.19% | 15.25% |
| Consumer Defensive | 7.83% | 3.09% |
| Real Estate | 3.79% | 8.16% |
| Financial Services | 17.64% | 12.56% |
| Consumer Cyclical | 12.64% | 11.35% |
| Basic Materials | 8.37% | 3.26% |
The Vanguard Total International Stock Index Fund ETF Shares (VXUS) has the most exposure to the Financial Services sector at 17.64%. This is followed by Technology and Industrials at 13.07% and 12.94% respectively. Real Estate (3.79%), Energy (4.55%), and Communication Services (7.06%) only make up 15.40% of the fund’s total assets.
VXUS’s mid-section with moderate exposure is comprised of Consumer Defensive, Basic Materials, Healthcare, Consumer Cyclical, and Industrials stocks at 7.83%, 8.37%, 9.19%, 12.64%, and 12.94%.
The Vanguard Extended Market Index Fund ETF Shares (VXF) has the most exposure to the Technology sector at 23.61%. This is followed by Healthcare and Financial Services at 15.25% and 12.56% respectively. Energy (2.46%), Consumer Defensive (3.09%), and Basic Materials (3.26%) only make up 8.81% of the fund’s total assets.
VXF’s mid-section with moderate exposure is comprised of Communication Services, Real Estate, Industrials, Consumer Cyclical, and Financial Services stocks at 7.29%, 8.16%, 11.31%, 11.35%, and 12.56%.
VXUS is 5.08% more exposed to the Financial Services sector than VXF (17.64% vs 12.56%). VXUS’s exposure to Technology and Industrials stocks is 10.54% lower and 1.63% higher respectively (13.07% vs. 23.61% and 12.94% vs. 11.31%). In total, Real Estate, Energy, and Communication Services also make up 2.51% less of the fund’s holdings compared to VXF (15.40% vs. 17.91%).
Holdings
| VXUS Holdings | Weight |
| Taiwan Semiconductor Manufacturing Co Ltd | 1.62% |
| Tencent Holdings Ltd | 1.41% |
| Alibaba Group Holding Ltd Ordinary Shares | 1.26% |
| Nestle SA | 1.1% |
| Samsung Electronics Co Ltd | 1.05% |
| ASML Holding NV | 0.86% |
| Roche Holding AG | 0.81% |
| Toyota Motor Corp | 0.67% |
| LVMH Moet Hennessy Louis Vuitton SE | 0.61% |
| Novartis AG | 0.6% |
VXUS’s Top Holdings are Taiwan Semiconductor Manufacturing Co Ltd, Tencent Holdings Ltd, Alibaba Group Holding Ltd Ordinary Shares, Nestle SA, and Samsung Electronics Co Ltd at 1.62%, 1.41%, 1.26%, 1.1%, and 1.05%.
ASML Holding NV (0.86%), Roche Holding AG (0.81%), and Toyota Motor Corp (0.67%) have a slightly smaller but still significant weight. LVMH Moet Hennessy Louis Vuitton SE and Novartis AG are also represented in the VXUS’s holdings at 0.61% and 0.6%.
| VXF Holdings | Weight |
| Square Inc A | 1.2% |
| Zoom Video Communications Inc | 1.04% |
| Uber Technologies Inc | 0.93% |
| Moderna Inc | 0.9% |
| Blackstone Group Inc | 0.83% |
| Snap Inc Class A | 0.8% |
| Twilio Inc A | 0.73% |
| DocuSign Inc | 0.68% |
| CrowdStrike Holdings Inc Class A | 0.63% |
| Marvell Technology Inc | 0.6% |
VXF’s Top Holdings are Square Inc A, Zoom Video Communications Inc, Uber Technologies Inc, Moderna Inc, and Blackstone Group Inc at 1.2%, 1.04%, 0.93%, 0.9%, and 0.83%.
Snap Inc Class A (0.8%), Twilio Inc A (0.73%), and DocuSign Inc (0.68%) have a slightly smaller but still significant weight. CrowdStrike Holdings Inc Class A and Marvell Technology Inc are also represented in the VXF’s holdings at 0.63% and 0.6%.
Risk Analysis
| VXUS | VXF | |
| Mean Return | 0.56 | 1.24 |
| R-squared | 98.39 | 85.73 |
| Std. Deviation | 15.12 | 18.04 |
| Alpha | 0.31 | -3.26 |
| Beta | 0.99 | 1.23 |
| Sharpe Ratio | 0.4 | 0.79 |
| Treynor Ratio | 5.14 | 10.92 |
The Vanguard Total International Stock Index Fund ETF Shares (VXUS) has a Sharpe Ratio of 0.4 with a Mean Return of 0.56 and a R-squared of 98.39. Its Beta is 0.99 while VXUS’s Standard Deviation is 15.12. Furthermore, the fund has a Alpha of 0.31 and a Treynor Ratio of 5.14.
The Vanguard Extended Market Index Fund ETF Shares (VXF) has a Standard Deviation of 18.04 with a Alpha of -3.26 and a R-squared of 85.73. Its Mean Return is 1.24 while VXF’s Beta is 1.23. Furthermore, the fund has a Treynor Ratio of 10.92 and a Sharpe Ratio of 0.79.
VXUS’s Mean Return is 0.68 points lower than that of VXF and its R-squared is 12.66 points higher. With a Standard Deviation of 15.12, VXUS is slightly less volatile than VXF. The Alpha and Beta of VXUS are 3.57 points higher and 0.24 points lower than VXF’s Alpha and Beta.
NOTE: The easiest way to add diversification to your portfolio is to invest in real estate through Fundrise. You can become private real estate investor without the burden of property management! Check it out here (link to Fundrise).
Performance
Annual Returns
| Year | VXUS | VXF |
| 2020 | 11.32% | 32.19% |
| 2019 | 21.58% | 28.04% |
| 2018 | -14.42% | -9.37% |
| 2017 | 27.52% | 18.1% |
| 2016 | 4.72% | 16.16% |
| 2015 | -4.28% | -3.26% |
| 2014 | -4.17% | 7.55% |
| 2013 | 15.16% | 38.37% |
| 2012 | 18.22% | 18.48% |
| 2011 | 0.0% | -3.61% |
| 2010 | 0.0% | 27.55% |
VXUS had its best year in 2017 with an annual return of 27.52%. VXUS’s worst year over the past decade yielded -14.42% and occurred in 2018. In most years the Vanguard Total International Stock Index Fund ETF Shares provided moderate returns such as in 2010, 2016, and 2020 where annual returns amounted to 0.0%, 4.72%, and 11.32% respectively.
The year 2013 was the strongest year for VXF, returning 38.37% on an annual basis. The poorest year for VXF in the last ten years was 2018, with a yield of -9.37%. Most years the Vanguard Extended Market Index Fund ETF Shares has given investors modest returns, such as in 2016, 2017, and 2012, when gains were 16.16%, 18.1%, and 18.48% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| VXUS | $10,000 | $19,315 | 8.41% |
| VXF | $10,000 | $35,894 | 15.47% |
A $10,000 investment in VXUS would have resulted in a final balance of $19,315. This is a profit of $9,315 over 9 years and amounts to a compound annual growth rate (CAGR) of 8.41%.
With a $10,000 investment in VXF, the end total would have been $35,894. This equates to a $25,894 profit over 9 years and a compound annual growth rate (CAGR) of 15.47%.
VXUS’s CAGR is 7.07 percentage points lower than that of VXF and as a result, would have yielded $16,579 less on a $10,000 investment. Thus, VXUS performed worse than VXF by 7.07% annually.
Current recommendations:
Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:
P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!
1)Personal Capital is simply the best tool out there to track your net worth and plan for financial freedom. Just their retirement planner alone has become an invaluable tool to keep myself on track financially. Try it out, it's free!
2) Take a look at M1 Finance, my favorite broker. I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!
3) Fundrise is by far the best way I've found to invest in Real Estate. You can diversify your portfolio by investing in their eREITs or even allocate capital to individual properties (without the hassle of managing tenants!).
4) Groundfloor is another great way to get exposure to the real estate sector by investing in short-term, high-yield real estate debt. Current returns are >10% and you can get started with just $10.
5) If you are interested in startup investing, check out Mainvest. I've started allocating a small amount of assets to invest in and support small businesses. Return targets are between 10-25% and you can start with just $100!
To see all of my most up-to-date recommendations, check out the Recommended Tools section.
I believe that money is just a means to an end: to be free to spend your time as you wish, to maximize your positive impact on the world.
