VOO: Vanguard S&P 500 ETF (VOO) has an expense ratio of 0.03%, a 5-year return of 13.15%, and a P/E ratio of 13.15%, a P/S ratio of 0.16, and a P/B ratio not provided as of June 26, 2024. It has a dividend yield of 1.27%1.
VXUS: Vanguard Total International Stock ETF (VXUS) has an expense ratio of 0.07%, a 5-year return of 32.96%, and a P/E ratio not provided, a P/S ratio not provided, and a P/B ratio not provided. It has a dividend yield of 1.27%2.
Expense Ratios and Returns:
VOO has a significantly lower expense ratio compared to VXUS, which is 0.07% versus 0.03%. This indicates that VOO is a more cost-effective option.
VXUS has a higher 5-year return compared to VOO, which is 32.96% versus 13.15%. However, it's important to note that VXUS's returns are on international stocks, which come with their own set of risks.
Investment Strategy and Diversification:
VOO is a U.S. domestic ETF that tracks the performance of the S&P 500, which is a widely followed and respected index representing large-cap U.S. stocks.
VXUS is an international ETF that provides exposure to equities outside the U.S., which can be beneficial for diversification purposes, but also introduces additional risks such as currency risk and geopolitical risk.
Conclusion and Recommendation:
For investors primarily focused on the U.S. market, VOO is the better choice due to its lower expense ratio and the familiarity and stability of the U.S. economy represented by the S&P 500.
If an investor wants to diversify with international exposure, VXUS could be considered, but it should be done in conjunction with other international investments to manage additional risks.
Source:
1.
VOO expense ratio, 5 year return, investment strategy
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