Two ETFs Abroad: A Penny-Wise Look

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Now, a man might think, lookin’ at these here stock markets, that spreadin’ your wealth ’round a bit—beyond these United States—is a sensible notion. Like not puttin’ all your eggs in one basket, as the saying goes, lest a clumsy hen come along. These two Exchange Traded Funds, the Vanguard Total International Stock ETF (VXUS) and the iShares Core MSCI Total International Stock ETF (IXUS), they’re aimin’ to do just that—give a feller a slice of the world beyond our shores. Both are attemptin’ to capture the performance of stocks outside the U.S., and a body could spend a good while tryin’ to figure out which one’s the better steer.

A Quick Reckoning

Metric VXUS IXUS
Issuer Vanguard iShares
Expense Ratio 0.05% 0.07%
1-yr Return (as of Feb. 7, 2026) 31.83% 31.67%
Dividend Yield 2.96% 3.01%
Beta 1.00 0.76
AUM $133.1 billion $54.40 billion

Now, the expense ratio is a mite of a thing, but it adds up. Vanguard’s VXUS is a shade cheaper, though the difference won’t likely make or break a man. IXUS, on the other hand, offers a slightly richer dividend yield, though a feller shouldn’t chase a penny at the expense of good sense. The ‘Beta’ tells ye how much these funds bounce around compared to the whole U.S. market. VXUS mirrors the market, while IXUS is a bit more…restrained. And the amount of money these funds hold—the AUM—shows which one the crowd favors, though popularity ain’t always a sign of wisdom.

A Look Beneath the Bonnet

Metric VXUS IXUS
Max Drawdown (5 yr) -29.43% -30.05%
Growth of $1,000 over 5 years $1,277 $1,282

These numbers tell a tale of similar risk and reward. Over the past five years, both funds have weathered the storms and seen growth, though a body could lose a good bit of sleep during the rough patches. The ‘Max Drawdown’ shows the biggest dip—a reminder that markets ain’t always goin’ up.

What’s Inside These Funds?

IXUS, it holds 4,211 stocks, spread across the globe—from the factories of Taiwan Semiconductor Manufacturing (2330.SR) to the electronics of Samsung Electronics Ltd (005930.KS) and the clever machines of ASML Holding N.V. (AMS:ASML.AS). It favors financial companies, industries, and the tech sector. VXUS, now, it’s a bit of a collector—holdin’ 8,602 stocks. Double the amount of IXUS, mind ye! It leans a bit heavier into financial services and technology as well. Both funds have been around for over a decade, aimin’ to give investors a broad, low-cost way to diversify beyond our borders.

What Does it All Mean for a Feller Like You?

Truth be told, these two ETFs are remarkably similar. Same holdings, same betas, same returns, and darn near the same expense ratios. The main difference? VXUS holds twice as many stocks. So, it comes down to whether a man prefers a concentrated portfolio or a wider spread. Now, IXUS pays dividends semi-annually, while VXUS does it quarterly. Some folks like gettin’ their money more often, while others prefer less fuss.

But here’s a word to the wise: these funds don’t hold any U.S. stocks. Investing in foreign markets carries its own set of risks. Foreign economies can move differently than ours, and that can lead to different results. A man ought to do his research and understand what he’s gettin’ into. International markets can be more volatile, which can lead to bigger gains, but also bigger losses. It’s a gamble, like any investment, but a calculated one, if a man’s done his homework.

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2026-02-08 16:22