The Vanguard Total Stock Market ETF (VTI) and the Vanguard FTSE All-World ex-US ETF (VEU) are both interesting ETFs. VTI tracks CRSP US Total Market Index and VEU tracks FTSE All-World ex US Index. So, what’s the difference between VTI vs VEU? And which fund is better?

VTI vs VEU: The expense ratio of VTI is 0.03% and VEU is 0.08%. VTI’s biggest holding is Apple Inc and VEU’s biggest holding is Nestle SA. Overall, VTI has provided 8.08% Higher returns than VEU over the past ten years.

In this article, we’ll compare VTI vs VEU. We’ll look at holdings and performance, as well as at their portfolio growth and annual returns. Moreover, I’ll also discuss VTI’s and VEU’s industry exposure, risk metrics, fund composition and examine how these affect their overall returns.

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Summary VTI vs VEU

VEU vs VTI Table

	BND	IUSB
Name	Vanguard Total Stock Market ETF	Vanguard FTSE All-World ex-US ETF
Category	Large Blend	Foreign Large Blend
Issuer	Vanguard	Vanguard
AUM	$1.27T	$49.43B
Avg. Return	12.54%	4.46%
Div. Yield	1.57%	2.99%
Expense Ratio	0.03%	0.08%

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The Vanguard Total Stock Market ETF (VTI) is a CRSP US Total Market Index fund that is issued by Vanguard. It currently has $1.27T total assets under management and has yielded an average annual return of 12.54% over the past 10 years. The fund has a dividend yield of 1.57% with an expense ratio of 0.03%.

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The Vanguard FTSE All-World ex-US ETF (VEU) is a FTSE All-World ex US Index that is issued by Vanguard. It currently has $49.43B total assets under management and has yielded an average annual return of 4.46% over the past 10 years. The fund has a dividend yield of 2.99% with an expense ratio of 0.08%.

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VTI’s dividend yield is Lower than that of VEU (1.57% vs 2.99%). Also, VTI yielded on average 8.08% Higher per year over the past decade (12.54% vs 4.46%). The expense ratio of VTI is -0.05% percentage points Lower than VEU’s (0.03% vs 0.08%).

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Fund Composition VTI vs VEU

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Industry Exposure Table vs VTI

	VTI	VEU
Technology	27.62%	0.1211
Industrials	9.07%	0.1362
Energy	4.08%	0.0513
Communication Services	7.97%	0.0545
Utilities	2.61%	0.0299
Healthcare	13.73%	0.0956
Consumer Defensive	6.27%	0.0812
Real Estate	3.13%	0.0249
Financial Services	12.12%	0.191
Consumer Cyclical	10.35%	0.1072
Basic Materials	0.0237	0.0746

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The Vanguard Total Stock Market ETF (VTI) has the most exposure to the Technology sector at 27.62%. This is followed by Healthcare and Financial Services at 13.73% and 12.12% respectively. Basic Materials (2.37%), Utilities (2.61%), and Real Estate (3.13%) only make up 8.11% of the fund’s total assets.

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VTI’s middle weighted sectors is made up with moderate exposure to Energy, Consumer Defensive, Communication Services, Industrials, and Consumer Cyclical stocks at 4.08%, 6.27%, 7.97%, 9.07%, and 10.35%.

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The Vanguard FTSE All-World ex-US ETF (VEU) has the most exposure to the Financial Services sector at 0.191. This is followed by Industrials and Technology at 0.1362 and 0.1211 respectively. Real Estate (0.0249), Utilities (0.0299), and Energy (0.0513) only make up 0.1061 of the fund’s total assets.

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VEU’s middle weighted sectors is made up with moderate exposure to Communication Services, Basic Materials, Consumer Defensive, Healthcare, and Consumer Cyclical stocks at 0.0545, 0.0746, 0.0812, 9.07%, and 10.35%.

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VTI is 15.51% More exposed to the Technology sector than VEU (27.62% vs 12.11%). VTI’s exposure to Healthcare and Financial Services stocks is 4.17% More and -6.98% Less respectively (13.73% vs. 9.56%) and (12.12% vs. 19.10%).

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In total, VTI’s bottom three industries, Real Estate, Utilities, and Basic Materials also make up -2.50% Lower of the fund’s holdings compared to VEU’s bottom three industries. (8.11% vs. 0.1061).

Holdings Vanguard Total Stock Market ETF (VTI)

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VTI Holdings	Weight
Apple Inc	6.53%
Microsoft Corp	5.99%
Amazon.com Inc	2.57%
NVIDIA Corp	2.17%
Alphabet Inc Class A	1.80%
Alphabet Inc Class C	1.53%
Meta Platforms Inc Class A	1.44%
Berkshire Hathaway Inc Class B	1.38%
Tesla Inc	1.34%
UnitedHealth Group Inc	1.12%

 

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VTI’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, NVIDIA Corp, and Alphabet Inc Class A at 6.53%, 5.99%, 2.57%, 2.17%, and 1.80%.

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Alphabet Inc Class C (1.53%), Meta Platforms Inc Class A (1.44%), and Berkshire Hathaway Inc Class B (1.38%) have a slightly smaller but still significant weight. Tesla Inc and UnitedHealth Group Inc are also represented in the VTI’s holdings at 1.34% and 1.12%.

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Holdings Vanguard FTSE All-World ex-US ETF (VEU)

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VTI Holdings	Weight
Nestle SA	0.0128
ASML Holding NV	0.0117
Taiwan Semiconductor Manufacturing Co Ltd	0.0112
Samsung Electronics Co Ltd	0.0104
Novo Nordisk A/S Class B	0.0101
Tencent Holdings Ltd	0.0095
Roche Holding AG	0.0089
LVMH Moet Hennessy Louis Vuitton SE	0.0087
AstraZeneca PLC	0.0086
Shell PLC	0.0077

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VTI’s Top Holdings are Nestle SA, ASML Holding NV, Taiwan Semiconductor Manufacturing Co Ltd, Samsung Electronics Co Ltd, and Novo Nordisk A/S Class B at 0.0128, 0.0117, 0.0112, 0.0104, and 0.0101.

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Tencent Holdings Ltd (0.0095), Roche Holding AG (0.0089), and LVMH Moet Hennessy Louis Vuitton SE (0.0087) have a slightly smaller but still significant weight. AstraZeneca PLC and Shell PLC are also represented in the ’s holdings at 0.0086 and 0.0077.

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Risk Analysis VTI vs VEU

	SCHD	SDY
Mean Return	1.09	0.73
R-squared	99.08	98.6
Std. Deviation	18.17	17.48
Alpha	-0.8	0.25
Beta	1.01	1.02
Sharpe Ratio	0.64	0.42
Treynor Ratio	10.57	6.01

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The Vanguard Total Stock Market ETF has a Standard Deviation of 18.17 with a Alpha of -0.8 and a Treynor Ratio of 10.57. Its Sharpe Ratio is 0.64 while VTI’s Beta is 1.01. Furthermore, the fund has a Mean Return of 1.09 and a R-squared of 99.08.

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The VEU has a R-squared of 98.6 with a Mean Return of 0.73 and a Standard Deviation of 17.48. Its Sharpe Ratio is 0.42 while VEU’s Alpha is 0.251. Furthermore, the fund has a Beta of 1.02 and a Treynor Ratio of 6.01.

Performance VTI vs VEU

Annual Returns VTI vs VEU

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Year	VTI	VEU
2022	-19.51%	-0.1559
2021	25.67%	0.0828
2020	21.03%	0.1112
2019	30.67%	0.2183
2018	-5.21%	-0.1419
2017	21.21%	0.2739
2016	12.83%	0.0491
2015	0.36%	-0.0478
2014	12.54%	-0.0454
2013	33.45%	0.1418
2012	16.45%	0.189
2011	0.97%	-0.1402

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VTI had its best year in 2013 with an annual return of 33.45%. VTI’s worst year over the past decade yielded -19.51% and occurred in 2022. In most years the Vanguard Total Stock Market ETF provided moderate returns such as in 2019, 2021, and 2017 where annual returns amounted to 31.35%, 28.78%, and 21.77% respectively.

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The year 2017 was the strongest year for VEU, returning 0.2739 on an annual basis. The poorest year for VEU in the last ten years was 2022, with a yield of -0.1559. Most years the Vanguard FTSE All-World ex-US ETF has given investors modest returns, such as in 2019, 2012, and 2013, when gains were 27.32%, 18.29%, and 37.70% respectively.

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Performance Comparison VTI vs VEU

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Fund	Initial Balance	Final Balance	CAGR
VTI	$10,000	$29,488.88	12.77%
VEU	$10,000	$16,654.76	5.83%

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A $10,000 investment in VTI would have resulted in a final balance of $29,488.88. This is a profit of $19,488.88 over 10 years and amounts to a compound annual growth rate (CAGR) of 12.77%.

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With a $10,000 investment in VEU, the end total would have been $16,654.76. This equates to a $6,654.76 profit over 10 years and a compound annual growth rate (CAGR) of 5.83%.

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VEU’s CAGR is -6.94% Lower than that of VTI and as a result, would have yielded -$12,834.12 Less on a $10,000 investment. Thus, VEU Underperformed VTI by -$1,283.41 annually.