The Vanguard Total International Stock ETF (VXUS) holds 8,790 stocks from around the world, providing investors with a diversified alternative to U.S.-centric benchmarks. Unlike the S&P 500, where a single company like Nvidia can account for 8.1% of the fund, the international ETF distributes weights across entire countries, with Japan comprising 15.5% and Taiwan 8.7%. This structure addresses the concentration risk inherent in major U.S. indices, where a handful of megacap tech firms often drive overall performance.
The fund’s top holdings include Taiwan Semiconductor Manufacturing, Samsung Electronics, SK Hynix, and ASML, which together represent only 8.7% of the portfolio. No other single holding exceeds 1% of the fund, as only three non-U.S. stocks have market capitalizations over $1 trillion. In contrast, the four largest holdings in the Vanguard S&P 500 ETF (VOO) make up 26.2% of that fund. This divergence highlights how sector leadership is far more spread out on the global stage compared to the U.S. market, where industry leaders in financials, healthcare, and energy are dominated by a few massive domestic names.
Valuation metrics further distinguish the two funds. As of October 15, 2026, the Vanguard Total International Stock ETF carries a price-to-earnings ratio of 16.2 and yields 2.3%. The Vanguard S&P 500 ETF, by comparison, trades at a P/E of 25.2 with a yield of 1.1%. While U.S. stocks like Nvidia forecast significant revenue growth, international stocks are often valued more for existing earnings and moderate growth prospects. The lower expense ratio of the international fund is also notable; it charges 0.05%, slightly higher than the S&P 500 ETF’s 0.03%, a difference driven by the massive scale of assets under management.
The Vanguard S&P 500 ETF remains the largest in the world with $1 trillion in net assets, but the Total International Stock ETF is substantial in its own right, holding $164.9 billion in net assets. U.S. stocks may outperform international ones over the long term due to superior corporate governance and liquidity, but the international fund offers a way to balance a growth-focused portfolio. It provides access to leading global companies that are excluded from U.S.-specific indices, allowing investors to diversify away from the top-heavy nature of American markets without abandoning their core U.S. equity positions.