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?

Two of the international ex-US ETFs that Vanguard issues are VEU and VXUS. So, which of the two is better? How do they compare and contrast?

Vanguard FTSE All-World ex-US ETF (VEU) was established in 2007 and seeks to track the FTSE All-World ex-US Index.

VEU: Vanguard FTSE All-World Ex-US ETF

VXUS seeks to track the performance of the FTSE Global All Cap ex-US Index.

VXUS: Vanguard Total International Stock Index Fund ETF

VXUS follows the Global All Cap ex-US Index. On the other hand, the FTSE All-World ex-US Index is only followed by VEU.

Fund Followed

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

Stock Composition

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 Size

 VXUS has slightly better returns but has higher volatility  based on its  past performance.

Performance Differences