Wealthy PotVOO vs VXUS: Not a Choice Between Two Funds, a Question of How Much Abroad
VOO and VXUS share no holdings at all. VOO owns the S&P 500, about 500 large US companies. VXUS owns roughly 8,800 companies in every major stock market except the United States. Matching the two funds' SEC portfolio filings produces an overlap of exactly 0%. So "VOO or VXUS?" is not really a fund choice. It is the question of whether you want international stocks in your portfolio, and how much. VOO is cheaper (0.03% against 0.05%) and has returned far more over ten years, 15.29% a year against 9.20% to 30 September 2026. VXUS beat it by 14.5 percentage points in 2025. Most long-term investors who hold both use VOO, or a total-market fund, as the core and VXUS as the international slice.
Table of Contents
The Short Answer
- Overlap: 0%. Not one company appears in both funds. VXUS excludes the United States by definition; VOO holds nothing else.
- Fees: 0.03% vs 0.05%. That is $3 against $5 a year on $10,000, per each fund's 2026 summary prospectus.
- Holdings: 506 vs 8,755. VOO's ten largest stocks are 37.9% of the fund. VXUS's ten largest are 15.0%. Both figures are from Vanguard's 30 June 2026 fact sheets.
- Ten-year returns to 30 September 2026: VOO 15.29% a year, VXUS 9.20% at NAV. Over one year VXUS was ahead, 18.49% against 15.70%.
- In 2025 VXUS returned 32.23% and VOO 17.84%. International led in three of the nine full calendar years from 2017 through 2025.
- VXUS passes foreign taxes through to you. In a taxable account you can usually claim them back as a foreign tax credit. In an IRA you cannot.
- For reference, Vanguard's own Target Retirement 2050 Fund puts about 40% of its stock money in international stocks. The global market is about 38% non-US. Those are reference points, not a recommendation.
Zero Overlap, by Design
Most fund comparisons on this site start with how much two funds duplicate each other. This one has nothing to duplicate. We matched VOO's SEC portfolio filing for 30 June 2026 (501 positions) against VXUS's for 31 July 2026 (8,674 positions). The overlap is 0.0%, with no shared holdings. Run the same pair through our Portfolio Overlap Checker and you will see the same blank result.
That makes them complements, not substitutes. Holding both is not redundant. VOO + VXUS covers US large caps plus the rest of the world. It leaves out US mid and small caps, which is the gap a total-market fund like VTI fills. We cover that version in VTI vs VXUS. If you would rather not choose the split at all, a single global fund does it for you, as covered in VT vs VOO.
VOO vs VXUS Side by Side
| VOO | VXUS | |
|---|---|---|
| Full name | Vanguard S&P 500 ETF | Vanguard Total International Stock ETF |
| Index | S&P 500 | FTSE Global All Cap ex US Index |
| What it covers | US large caps | Developed and emerging markets outside the US, large to small caps |
| Expense ratio | 0.03% | 0.05% |
| Prospectus cost on $10,000, 10 years | $39 | $64 |
| Number of stocks | 506 (30 Jun 2026) | 8,755 (30 Jun 2026); 8,790 (31 Aug 2026) |
| Top-10 weight | 37.9% | 15.0% |
| Largest sector | Information Technology 38.0% | Financials 22.2% |
| Portfolio turnover | 2% | 4% |
| ETF share class assets | $979.0bn (30 Jun 2026) | $156.5bn (30 Jun 2026) |
| 1-year return, NAV | 15.70% | 18.49% |
| 5-year return, NAV | 13.75% | 9.35% |
| 10-year return, NAV | 15.29% | 9.20% |
| Exchange | NYSE Arca | Nasdaq |
What VXUS Actually Owns
VXUS's prospectus says it tracks an index of "companies located in developed and emerging markets, excluding the United States," weighted by market value, and that the fund uses "the replication method of indexing." In practice that means about 8,800 stocks from large to small, in roughly the proportions the market gives them.
| Ten largest markets in VXUS, 30 June 2026 | % of common stock |
|---|---|
| Japan | 15.4% |
| Taiwan | 9.1% |
| United Kingdom | 8.0% |
| Canada | 7.7% |
| Korea | 7.5% |
| China | 6.7% |
| Switzerland | 5.1% |
| France | 5.1% |
| Germany | 4.6% |
| India | 4.4% |
By region at 31 August 2026, Vanguard put 36.4% of the fund in Europe, 28.5% in the Pacific, 26.2% in emerging markets and 8.1% in North America, which here means Canada. The largest single holdings are chip and technology names: Taiwan Semiconductor at 4.3%, Samsung Electronics at 2.6%, SK hynix at 2.2% and ASML at 1.7%. Even so, no one company comes close to NVIDIA's 7.5% weight in VOO.
If you only want the developed-market part, see VEA vs VXUS. If you only want the emerging-market part, see VWO vs VXUS.
Returns: A Decade for the US, Then 2025
| Average annual, NAV, to 30 Sep 2026 | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| VOO | 15.70% | 22.85% | 13.75% | 15.29% |
| VXUS | 18.49% | 20.15% | 9.35% | 9.20% |
| VXUS minus VOO | +2.79 | -2.70 | -4.40 | -6.09 |
Over ten years the US won by about six points a year. That compounds: $10,000 at VOO's ten-year rate would have grown to about $41,487, and at VXUS's rate to about $24,112. (Hypothetical arithmetic on the published ten-year rates. It ignores taxes and trading costs and is not a forecast.)
The ten-year number hides how often the lead changed. Here are full calendar years, at market price, from Vanguard's own tables.
| Calendar year | VOO | VXUS | VXUS minus VOO |
|---|---|---|---|
| 2017 | 21.74% | 27.49% | +5.75 |
| 2018 | -4.47% | -14.49% | -10.02 |
| 2019 | 31.47% | 21.84% | -9.63 |
| 2020 | 18.40% | 10.71% | -7.69 |
| 2021 | 28.60% | 9.00% | -19.60 |
| 2022 | -18.15% | -16.13% | +2.02 |
| 2023 | 26.33% | 15.92% | -10.41 |
| 2024 | 24.94% | 5.09% | -19.85 |
| 2025 | 17.82% | 32.35% | +14.53 |
VXUS won three of those nine years: 2017, 2022 and 2025. It also led for the year to 30 September 2026, 13.45% against 12.74% at market price. The US led in the other six full years, often by a wide margin, and those wins are where the ten-year gap comes from.
On risk, the two funds were closer than you might expect. Vanguard's three-year standard deviation to 30 June 2026 was 12.90% for VXUS and 13.06% for VOO. Spreading money across thousands of companies and dozens of countries did not make VXUS calmer than a fund that is more than a third in ten US stocks.
The Foreign Tax Credit
Foreign governments withhold tax on the dividends VXUS receives. For the year to 31 October 2025, VXUS's audited accounts show dividends "net of foreign withholding taxes of $1,286,565" thousand, roughly $1.29 billion. The fund then passed that cost through to shareholders. Its annual report "designates to shareholders foreign source income of $15,031,213,000 and foreign taxes paid of $1,217,346,000." That is 0.22% of the fund's net assets at the year end.
The IRS lets you claim your share. Publication 514 says a mutual fund shareholder "may be able to claim the credit based on your share of foreign income taxes paid by the fund if it chooses to pass the credit on," using the amounts shown on your Form 1099-DIV. VXUS counts as a regulated investment company for this purpose. The mechanics, from Publication 514 and the Form 1116 instructions:
- Small amounts skip Form 1116. If all your foreign income is passive (fund dividends count), all of it is reported on a payee statement such as a 1099-DIV, and your creditable foreign taxes are $300 or less ($600 married filing jointly), you can elect to claim the credit directly without filing Form 1116.
- Above that, you file Form 1116 and the credit is limited by a formula based on your foreign-source share of income.
- Credit or deduction, your choice each year. The IRS notes that "in most cases, it is to your advantage" to take the credit.
- Holding period. For dividends, you must hold the shares at least 16 days within the 31-day window that starts 15 days before the ex-dividend date.
This only works in a taxable account. The credit is claimed on your own return from the amounts on your 1099-DIV. Dividends earned inside an IRA or 401(k) are not reported to you that way, so the foreign withholding is simply a cost there. That is one reason some investors keep VXUS in a taxable account and US funds in retirement accounts. Whether that placement helps you depends on your whole tax picture.
For VOO the credit is not a meaningful factor. It holds US-listed companies, almost all of them US-incorporated, so there is little or no foreign tax to recover.
Currency Risk Cuts Both Ways
VXUS owns stocks priced in yen, pounds, euros, Taiwan dollars and dozens of other currencies, and you own VXUS in US dollars. Its prospectus lists currency risk as a principal risk: "foreign currency will perform differently than U.S. dollars and increase the potential loss to the Fund."
The same exposure can help. Vanguard's annual report for the year to October 2025 said "the weakening of the U.S. dollar relative to major European currencies also helped boost returns from Europe for U.S.-based investors." When the dollar strengthens, the reverse happens. VOO has no direct currency exposure, though many S&P 500 companies earn part of their revenue abroad. For a US investor who spends dollars, VXUS adds a second source of risk, and also a second source of diversification.
How Much International?
There is no correct number, and this page will not give you one. Here are two reference points, both from Vanguard's own documents.
- The world market weight: about 38%. At 30 June 2026, US companies were 61.9% of the stocks in Vanguard Total World Stock ETF (VT), which weights every market by size. Everything else was the remaining 38.1%.
- Vanguard's target-date funds: about 40% of stocks. Vanguard Target Retirement 2050 Fund's summary prospectus lists 54.4% US stocks and 36.8% foreign stocks at 30 September 2025, so about 40% of its stocks are foreign. Its SEC holdings filing for 30 June 2026 gives the same answer: 36.3% in Total International Stock Index Fund against 53.7% in Total Stock Market Index Fund, which is 40.4% of the stock portion.
Example only, not advice: an investor who wanted Vanguard's target-date proportion with these two ETFs would put roughly 60% of their stock money in VOO and 40% in VXUS. Someone who wants no foreign exposure would hold 0% VXUS. Plenty of investors pick something in between, such as 20% to 30%. Each choice is a bet that the last decade's US lead will or will not continue, and nobody knows which way that goes.
The split examples above are illustrations, not personalized investment advice. Past performance does not guarantee future results, and all investing carries risk of loss.
Which One Fits You
If you want only one fund, neither of these is a complete answer. VOO leaves out the rest of the world and VXUS leaves out the US. A single global fund covers both: see VT vs VXUS and VT vs VOO. A target-date fund in a 401(k) does the same thing and rebalances for you.
If you already own VOO and want international exposure, add VXUS. Nothing will be doubled up. Decide on a percentage, buy toward it with new money, and rebalance once a year or when it drifts well off target.
If you want the whole US market, not just large caps, pair VXUS with VTI instead of VOO. See VTI vs VXUS.
Taxable account and IRA? VXUS's foreign tax credit is only worth anything in the taxable account. VOO's lower yield and US-source dividends make it an easy fit in either. If you have room for both funds in both kinds of account, that is a reason to lean VXUS toward the taxable side.
401(k) menu? Many plans offer an S&P 500 index fund and a total international index fund instead of these exact ETFs. The same logic applies to those funds. Check the expense ratio and index in your plan's fund documents.
Prefer a mutual fund? VXUS is the ETF share class of Vanguard Total International Stock Index Fund. The Admiral class is covered in VTIAX vs VXUS. At Fidelity, the closest index fund is compared in FTIHX vs VXUS, and iShares' version is in IXUS vs VXUS.
Sources & Methodology
- VXUS summary prospectus, 27 February 2026: fee table, cost example, objective, index, replication method, turnover, currency risk, and returns to 31 December 2025.
- VOO summary prospectus, 28 April 2026: fee table, turnover and returns to 31 December 2025.
- Vanguard STAR Funds Form N-CSR, year ended 31 October 2025: VXUS foreign withholding taxes, foreign taxes designated to shareholders, net assets, and the currency comment.
- Vanguard fact sheets as of 30 June 2026 for VXUS, VOO and VT; Vanguard profile pages for VXUS and VOO: returns to 30 September 2026, calendar-year returns, VXUS regions at 31 August 2026.
- Vanguard Target Retirement 2050 Fund summary prospectus, January 2026 and its Form N-PORT for 30 June 2026: the target-date reference point.
- IRS Publication 514 (2025) and the Instructions for Form 1116: the foreign tax credit rules.
How the overlap was computed. Our Portfolio Overlap Checker sums the smaller of the two weights for every holding the funds share, using each fund's Form N-PORT filing: VOO as of 30 June 2026 and VXUS as of 31 July 2026. With no shared holdings the result is 0%. The N-PORT position counts (501 and 8,674) differ slightly from Vanguard's published stock counts because they are counted on different dates and bases.
What we did not verify. The tax figures above come from VXUS's fiscal year to October 2025. Your 1099-DIV covers a calendar year and will show different amounts. We did not compare dividend yields because we did not capture both funds' SEC yields for the same date.
This article is for general education and is not investment, tax or legal advice. Fund data changes daily, and past performance does not guarantee future results. All investing carries the risk of loss, and international investing adds currency and political risk. Figures were checked against the sources above on 4 October 2026. Confirm current figures with Vanguard and consider speaking with a licensed professional before acting.
FAQ: VOO vs VXUS
Should I buy VOO or VXUS?
They do different jobs, so most people who hold one of them benefit from holding the other too. VOO is US large caps and VXUS is everything outside the US, with 0% overlap. The real decision is what share of your stocks to hold abroad. Vanguard's 2050 target-date fund uses about 40%, and the global market weight is about 38%.
Do VOO and VXUS overlap?
No. Matching their SEC holdings filings for 30 June 2026 (VOO) and 31 July 2026 (VXUS) finds no shared companies. Holding both adds diversification without duplication.
Is VOO plus VXUS a complete portfolio?
For stocks, almost. It covers US large caps and the rest of the world, but leaves out US mid and small caps. Pairing VXUS with VTI instead of VOO fills that gap. Neither pairing includes bonds.
Why has VXUS done so much worse than VOO?
Over the ten years to 30 September 2026, US large caps returned 15.29% a year against 9.20% for international stocks. The US led in six of the nine calendar years from 2017 to 2025. That is a decade of market history, not a fault in the fund: VXUS tracked its index closely, and it beat VOO by 14.5 points in 2025.
What percentage of VXUS should I hold with VOO?
There is no single right answer. As reference points, the world market is about 38% non-US and Vanguard's Target Retirement 2050 Fund holds about 40% of its stocks abroad. For example, 60% VOO and 40% VXUS would copy the target-date proportion. Treat that as an example, not advice.
Can I get the foreign tax credit from VXUS?
In a taxable account, usually yes. VXUS passes through the foreign taxes it pays, and your 1099-DIV shows your share. If your total is $300 or less ($600 married filing jointly) and all your foreign income is passive and reported on payee statements, you can claim it without Form 1116. Inside an IRA there is nothing to claim.
Is VXUS riskier than VOO?
Different, not obviously riskier. Over the three years to 30 June 2026 their volatility was nearly identical: a standard deviation of 12.90% for VXUS against 13.06% for VOO. VXUS adds currency and emerging-market risk. VOO concentrates more than a third of the fund in ten US companies.
Cite This Page
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"VOO vs VXUS: Not a Choice Between Two Funds, a Question of How Much Abroad." Wealthy Pot, 2026. https://wealthypot.com/voo-vs-vxus/
Related comparisons: VTI vs VXUS · VT vs VXUS · VT vs VOO · VEA vs VXUS · VWO vs VXUS · VTIAX vs VXUS · All ETF comparisons
