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VEU vs VXUS: Which is the Best International ETF?

Exposure to international stocks is necessary for your portfolio as you want more diversification. During the lost decade of the 2000s, while U.S. stocks were flat, global stocks rose, giving investors portfolios more movement.

Building a 3-fund portfolio allows investors to have more diversification by adding in some more international exposure. But which one should you invest in?

Overview of VEU vs VXUS:


Let's start with an overview of both funds:

VEU is an ETF, an exchange-traded fund from Vanguard comprised of large and mid-cap non-US stocks.

VEU: Vanguard FTSE All-World ex-US Index Fund

With 3,670 individual holdings, based primarily out of Europe, the Pacific, and other global emerging markets, VEU provides solid exposure to most non-US markets. For investors looking for exposure to solid international companies, VEU is a great fit.

VXUS is another ETF offered by Vanguard that provides exposure to over 99% of non-US-based stocks worldwide.

VXUS: Vanguard Total International Stock Index Fund

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