VXUS Expense Ratio June 2026: 0.05% Full Cost Breakdown
VXUS charges 0.05% as of June 18 2026 which equals $5 per year on a $10,000 investment and 94% below the 0.85% foreign large blend category average
The VXUS expense ratio is 0.05% as of June 18 2026 costing investors only $5 per year on every $10,000 invested in this Vanguard Total International Stock ETF.
This page compares VXUS fees to peers like VEU at 0.04% and IXUS at 0.07% details securities lending offsets that often make the real cost zero foreign tax credits in taxable accounts and explains how the extra 0.01% over VEU delivers exposure to roughly 4,000 additional small-cap stocks that competitors exclude.
What You Need to Know
Vanguard returns 100% of securities lending profits to the VXUS fund unlike iShares which retains 20-30%. This revenue frequently covers the entire 0.05% expense ratio making the effective cost zero or even negative in some years. The result is tighter tracking to the index than the stated fee would suggest for the $155.6 billion ETF share class.
VXUS costs 0.01% more than VEU at 0.04% but includes roughly 8,600 stocks versus VEU’s 3,800 adding exposure to about 4,000 small-cap international names. That single basis point fee difference delivers broader diversification across markets. Investors seeking complete international coverage including small caps get significant extra value for the $1 annual difference on a $10,000 investment.
In taxable accounts the foreign tax credit often refunds more than the 0.05% VXUS expense ratio paid to foreign governments on dividends. This can result in a net negative cost for many U.S. investors. Combined with Vanguard’s 100% securities lending pass-through the real after-tax expense frequently approaches zero while still providing access to thousands of international stocks.
VXUS operates as a share class of the larger Vanguard Total International Stock Index Fund allowing capital gains to flush through mutual fund redemptions. This patented structure makes VXUS one of the most tax-efficient international ETFs with rare or nonexistent capital gains distributions. Investors in taxable accounts save significantly compared to less efficient structures that trigger yearly tax bills.
VXUS vs Similar ETFs — Expense Ratio Comparison
Click any column to sort. Lower = less fee drag on your returns each year.
| # | ETF Name | Ticker | Expense Ratio | Annual Cost $10K | Best For |
|---|---|---|---|---|---|
| 1 | Vanguard Total International Stock ETF | VXUS | 0.05% | $5 | Broad international exposure including small caps |
| 2 | Vanguard FTSE All-World ex-US ETF | VEU | 0.04% | $4 | Large and mid-cap developed and emerging markets |
| 3 | Schwab International Equity ETF | SCHF | 0.03% | $3 | Developed markets only low cost option |
| 4 | SPDR Portfolio Developed World ex-US ETF | SPDW | 0.03% | $3 | Cost conscious developed international investors |
| 5 | iShares Core MSCI Total International Stock ETF | IXUS | 0.07% | $7 | Similar total international coverage |
| 6 | iShares MSCI ACWI ex U.S. ETF | ACWX | 0.32% | $32 | Higher cost alternative with less efficiency |
What VXUS’s Fee Costs You Over Time
Fee drag compounds every year. Real dollar differences across holding periods.
| Scenario | VXUS Cost | Alternative | Alt Cost | You Save |
|---|---|---|---|---|
| $10,000 Investment 1 Year | $5 | Category Average | $85 | $80 |
| $100,000 Investment 1 Year | $50 | Category Average | $850 | $800 |
| $1 Million Investment 1 Year | $500 | Category Average | $8,500 | $8,000 |
| $10,000 Investment 10 Years | $50 | Category Average | $850 | $800 |
| $100,000 Retirement Portfolio 20 Years | $1,000 | IXUS at 0.07% | $1,400 | $400 |