Side-by-Side Comparison
| Metric | VT | VTI |
|---|---|---|
| Type | ETF | ETF |
| Expense Ratio | 7.00% | 3.00% |
| Holdings | 9,915 | 3,645 |
| Dividend Yield | 1.87% | 1.28% |
| Min Investment | None | None |
| Inception | 2008-06-24 | 2001-05-24 |
| Index Tracked | FTSE Global All Cap Index | CRSP US Total Market Index |
| AUM | $40B | $427B |
Fund data last updated: 2025-01-02. Expense ratios, holdings, and yields may change. Always verify with official sources.
Key Differences
- •VT includes international stocks (~40%); VTI is 100% U.S.
- •VT holds ~9,900 stocks from 47 countries; VTI holds ~3,600 U.S. stocks
- •VT has a higher expense ratio (0.07% vs 0.03%)
- •VT provides currency diversification; VTI is all USD-denominated
Which Should You Choose?
Taxable Brokerage Account
VTI may have a slight tax advantage. International stocks in VT qualify for foreign tax credit, but this adds complexity.
IRA (Traditional or Roth)
If you want true global diversification, VT is simpler than holding VTI + VXUS. If you follow JL Collins, VTI alone is sufficient.
401(k)
Use whichever your plan offers. If only U.S. options exist, that's perfectly fine.
JL Collins' Recommendation
JL Collins recommends VTI/VTSAX over VT. His reasoning: U.S. multinational companies (Apple, Google, etc.) already derive 40-50% of revenue internationally, providing implicit global exposure. Adding international stocks adds complexity and costs without proven long-term benefit.
Frequently Asked Questions
Should I invest internationally with VT or stick with VTI?
JL Collins argues VTI is sufficient because large U.S. companies are already global. However, others argue true geographic diversification requires VT. Both approaches are reasonable—the key is to pick one and stick with it.
Why has VTI outperformed VT historically?
U.S. stocks have outperformed international stocks over the past 15 years. However, international stocks outperformed in the 2000s. Past performance doesn't predict future results—diversification is about reducing risk, not maximizing returns.
What percentage of VT is U.S. stocks?
Approximately 60% of VT is U.S. stocks, with the remaining 40% split among developed and emerging markets. The allocation adjusts based on global market capitalizations.
Is VT good for a one-fund portfolio?
Yes. VT is an excellent choice for a simple, globally diversified portfolio. With one fund, you own essentially every publicly traded company in the world. Add bonds as you approach retirement.
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