VUG vs VXUS: Which ETF Is Better in 2026?
A metric-by-metric comparison of Vanguard Growth Index Fund ETF Shares (VUG) and Vanguard Total International Stock Index Fund ETF Shares (VXUS) — both US Large Cap Growth / Global Multi-Region funds — using ETFValuer's daily-updated rankings.
Educational content — not financial advice. Data as of July 26, 2026. ~5 minute read.
The Verdict
VUG (US Large Cap Growth) and VXUS (Global Multi-Region) sit in different corners of the market, so this is less a head-to-head than a question of what role each would play. They can be complements rather than alternatives — the metrics below show how differently the two have actually behaved.
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — VXUS scores higher: 78.5 (Grade B+) versus 63.6 for VUG. That doesn't make VUG a bad fund; it means VXUS currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Head-to-Head: Every Metric
| VUG | VXUS | |
|---|---|---|
| Category | US Large Cap Growth | Global Multi-Region |
| Expense ratio | 0.03% | 0.05% |
| Fund size (AUM) | $379.2B | $650.3B |
| Dividend yield | 1.84% | 2.56% |
| 1-year return | +12.87% | +23.24% |
| 3-year return | +74.84% | +57.36% |
| Volatility | 17.47% | 16.75% |
| Max drawdown | -22.85% | -13.58% |
| Sharpe ratio | 0.45 | 1.09 |
| ETFValuer score | 63.6 | 78.5 |
| Grade | C | B+ |
| Overall rank | #188 | #22 |
Bold marks the better value in each row. "Better" is directional only (e.g. lower cost, higher return) — it isn't a recommendation by itself. See the full methodology.
Cost
On cost, the two are essentially tied — VUG charges 0.03% a year versus VXUS's 0.05%. A difference this small (about $2.00 a year on a $10,000 position) isn't a reason to choose one fund over the other.
What VXUS's Fees Cost You
VXUS charges an expense ratio of 0.05% a year, deducted automatically from the fund's value. Small percentages compound into real money — adjust the figures below to see the impact on your own numbers.
Assumes a constant gross return and no additional contributions — a simplification, but it isolates exactly what the expense ratio costs. Try the full fee calculator to model contributions and compare any two funds.
Performance & Risk
Over the trailing 3 years, VUG returned +74.84% versus +57.36% for VXUS — a gap of about 17.5 percentage points. On risk, VXUS has held up better historically, with a shallower max drawdown (-13.58% vs. -22.85%). VXUS currently has the better risk-adjusted return (Sharpe ratio of 1.09 vs. 0.45), meaning it delivered more return per unit of volatility taken on.
How Closely Do They Track Each Other?
Over the last 3.0 years of daily returns (752 shared trading days), VUG and VXUS show a moderate correlation of 0.706 — related but meaningfully different. That's loose enough that the two funds do behave differently in a meaningful share of market conditions — holding both is defensible if you want exposure to each mandate.
| Measure | Value | What it means |
|---|---|---|
| Daily return correlation | 0.706 | Moderate — related but meaningfully different |
| R-squared | 49.9% | 49.9% of VUG's daily moves are explained by VXUS's |
| Tracking error (annualised) | 14.04% | Typical yearly spread between the two funds' returns |
| Annualised return over 3.0y | VUG +20.75% · VXUS +16.64% | VUG ahead by 4.11 points a year |
Correlation alone understates how far these can drift. Across every rolling 12-month window in the period, VUG finished as much as +32.5 points ahead of VXUS at the best extreme and -27.9 points at the worst — a 60.4-point spread between the best and worst year of relative performance. Two funds can correlate tightly day to day and still deliver very different outcomes over any single year you happen to hold them.
Calculated from daily total returns over the trailing 3-year window, recomputed every day this site refreshes. Correlation of 1.00 means the two funds moved in lockstep; 0.00 means their daily moves were unrelated.
Holdings Overlap
VUG and VXUS share no companies among their top 10 reported holdings. That points to genuinely different exposure, so holding both is more likely to diversify than to duplicate. Full portfolios may still overlap further down the list.
Based on the top 10 holdings in each fund's most recent SEC N-PORT-P filing.
Which One Should You Pick?
Lean VUG if…
- You want the lower running cost — 0.03% vs 0.05%, about $2 a year less on a $10,000 position
- You weight recent results heavily — it returned 74.8% over 3 years against 57.4%
Lean VXUS if…
- Current income matters to you — it yields 2.56% against 1.84%
- You care about return per unit of risk — its Sharpe ratio of 1.09 beats 0.45
These two are not really substitutes, so "both, in some proportion" is often the right answer rather than picking one. Model the blend with the Portfolio Blender.
Frequently Asked Questions
Is VUG or VXUS better?
On ETFValuer's overall model — which blends return, risk-adjusted performance, cost, drawdown, size and volatility — VXUS scores higher: 78.5 (Grade B+) versus 63.6 for VUG. That doesn't make VUG a bad fund; it means VXUS currently edges it out on this specific mix of factors. Read the metric-by-metric breakdown below before deciding which matters more for your own portfolio.
Which has the lower expense ratio, VUG or VXUS?
VUG currently has the lower expense ratio (0.03% vs. 0.05%).
Can I hold both VUG and VXUS?
Yes, and it may be worth doing. VUG and VXUS correlate at only 0.71 over the past 3.0 years, so they behave differently enough that holding both is a genuine diversification decision rather than a redundant one. Size each to the role you want it to play.
Go deeper on either fund
Full daily-updated metrics, holdings context, and category peers.