VXUS vs IXUS: Which Should You Pick?
VXUS charges 0.05% and tracks FTSE Global All Cap ex US with 8,772 stocks; IXUS charges 0.07% on MSCI ACWI ex USA IMI with 4,590. What index families change.
Both own the world outside the United States, developed and emerging, large through small. VXUS tracks the FTSE Global All Cap ex US Index at 0.05% and holds about 8,800 stocks; IXUS tracks the MSCI ACWI ex USA IMI Index at 0.07% and holds about 4,600. The gap in holdings is the two index families’ different rules for how small a stock can be and still count, and it is nearly all in names too small to move the fund.
Quick answer
VXUS by a hair for new money: two basis points cheaper and a deeper reach into small caps, about $20 a year on $100,000. If you already hold either, that is not a reason to sell and realize a gain. The more useful fact is that the two track different index families, FTSE and MSCI, which also classify a few countries differently, so one is a common substitute for the other when harvesting a loss. That practice has never been ruled on, and the risk stays with you.
| VXUS | IXUS | |
|---|---|---|
| Index | FTSE Global All Cap ex US | MSCI ACWI ex USA IMI |
| Index family | FTSE Russell | MSCI |
| Expense ratio | 0.05% | 0.07% |
| Holdings | 8,772 | 4,590 |
| Market coverage | Developed and emerging, all caps | Developed and emerging, all caps |
| Inception | Jan 2011 | Oct 2012 |
| Sponsor | Vanguard | iShares |
Issuer pages read September 7, 2026: Vanguard as of February 27, 2026 (expense ratio) and July 31, 2026 (holdings); iShares as of September 4, 2026.
The one real difference
Fee aside, the difference is the index provider. FTSE and MSCI both cover developed and emerging markets down to small caps, but they set the small-cap cutoff differently, which is why VXUS carries roughly twice the names. They also disagree on a few country classifications, South Korea being the well-known case, which shifts a small slice of weight between the developed and emerging buckets. None of this changes what the fund is for. It does mean the two portfolios are different lists, not one list under two tickers.
Does the choice move your outcome?
Set the gap to 2 basis points for the fee alone, or add whatever you think the index construction is worth, and compare it with saving a little more each month. The gap is small enough that the second lever wins by a wide margin.
Does This Decision Even Matter?
$120.9K
impact over 25 years from 44bp annual gap
$175.5K
impact over 25 years
Saving $200/month more matters 1x more than the fund choice.
Other decisions that typically matter more: international allocation, tax-advantaged account usage, behavior during downturns.
Focus on the decisions that matter. Track your FI progress at Summitward's dashboard.
Who should pick which
Lean VXUS if you
- Are adding new money and want the lower fee
- Pair it with VTI for a two-fund portfolio
- Want the deepest small-cap reach available
Lean IXUS if you
- Hold at a broker where iShares trades free
- Hold VXUS at a loss and want a different-index substitute
- Prefer MSCI classifications across your funds
On harvesting losses between them
The settled part of the wash-sale rule is that repurchasing the same fund within 30 days disallows the loss. Whether funds on different indexes from different providers are “substantially identical” has never been ruled on; VXUS to IXUS is a common swap made on the assumption that they are not, and that assumption is yours to make. The tax-loss harvesting tool prices a harvest at your rates first.
The full reasoning
Why to own international stocks at all, and how much, is in The Case for Global Equity Diversification. Whether to hold one world fund or a US and international pair is VT vs VTI + VXUS.
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