VXUS charges a much lower expense ratio and covers far more international stocks than ACWX
ACWX has delivered a slightly higher one-year return but comes with a lower dividend yield
Sector allocations differ, with ACWX tilted toward financials and technology while VXUS is heavily weighted in cash and others
Vanguard Total International Stock ETF (NASDAQ:VXUS) and iShares MSCI ACWI ex US ETF (NASDAQ:ACWX) both offer broad non-U.S. equity exposure, but VXUS is significantly cheaper, holds far more stocks, and tilts less toward financials and technology than ACWX.
Both funds aim to deliver diversified access to international equities, targeting developed and emerging markets outside the United States. This comparison explores how their costs, holdings, sector tilts, and recent performance may matter for investors seeking global diversification.
Metric | VXUS | ACWX |
|---|---|---|
Issuer | Vanguard | IShares |
Expense ratio | 0.05% | 0.32% |
1-yr return (as of 2026-01-09) | 33.7% | 34.2% |
Dividend yield | 3.1% | 2.7% |
Beta | 0.79 | 0.79 |
AUM | $124.7 billion | $8.4 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
VXUS is considerably more affordable with an expense ratio of 0.05%, while ACWX charges 0.32%. VXUS also provides a higher dividend yield at 3.1% compared to ACWX’s 2.7% payout.
Metric | VXUS | ACWX |
|---|---|---|
Max drawdown (5 y) | -29.43% | -30.06% |
Growth of $1,000 over 5 years | $1,256 | $1,267 |
ACWX tracks large- and mid-cap companies outside the U.S. and currently holds 1,751 stocks. ACWX has a fund age of 17.8 years. It is most heavily weighted toward financial services (25%), technology (15%), and industrials (15%). Its top holdings include Taiwan Semiconductor Manufacturing, Tencent Holdings Ltd, and Asml Holding Nv, collectively making up a notable share of assets.
VXUS, by contrast, is broader, holding 8,602 stocks across developed and emerging markets, and currently leans heavily into cash and others (53%), with smaller slices in industrials and technology. Its largest positions—Taiwan Semiconductor Manufacturing Co Ltd, Tencent Holdings Ltd, and ASML Holding NV—mirror ACWX’s, but make up a smaller portion of the portfolio, resulting in less concentration risk. Neither fund employs leverage, hedging, or ESG screens.
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The U.S. stock market is the largest and most influential around. However, investors would do well to remember that it is not all the world has to offer. There are many dynamic foreign-based companies listed on stock markets outside of the U.S. worth considering. For those who are looking to gain international exposure, there are plenty of ETFs to choose from, including Vanguard Total International Stock ETF (VXUS) and iShares MSCI ACWI ex US ETF (ACWX). Here’s what investors should know about them.
