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ACWX charges a higher expense ratio but offers a larger dividend yield than VT.<\/p>\n<\/li>\n
VT has outperformed ACWX on five-year growth, but ACWX has led over the past year.<\/p>\n<\/li>\n
ACWX holds only non-U.S. stocks, while VT blends U.S. and international equities.<\/p>\n<\/li>\n
These 10 stocks could mint the next wave of millionaires \u203a<\/p>\n<\/li>\n<\/ul>\n
Both the Vanguard Total World Stock ETF <\/strong>(NYSEMKT:VT)<\/span> and iShares MSCI ACWI ex U.S. ETF <\/strong>(NASDAQ:ACWX)<\/span> aim to provide broad international equity exposure, but approach it differently. This comparison unpacks costs, returns, risk, and portfolio makeup to help investors decide which approach best meets their needs.<\/p>\n Metric<\/p>\n<\/th>\n VT<\/p>\n<\/th>\n ACWX<\/p>\n<\/th>\n<\/tr>\n<\/thead>\n Issuer<\/p>\n<\/td>\n Vanguard<\/p>\n<\/td>\n IShares<\/p>\n<\/td>\n<\/tr>\n Expense ratio<\/p>\n<\/td>\n 0.06%<\/p>\n<\/td>\n 0.32%<\/p>\n<\/td>\n<\/tr>\n 1-yr return (as of Jan. 24, 2026)<\/p>\n<\/td>\n 19.76%<\/p>\n<\/td>\n 34.2%<\/p>\n<\/td>\n<\/tr>\n Dividend yield<\/p>\n<\/td>\n 1.77%<\/p>\n<\/td>\n 2.7%<\/p>\n<\/td>\n<\/tr>\n Beta<\/p>\n<\/td>\n 0.92<\/p>\n<\/td>\n 0.74<\/p>\n<\/td>\n<\/tr>\n AUM<\/p>\n<\/td>\n $62.50 billion<\/p>\n<\/td>\n $8.53 billion<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12\u00a0months.<\/em><\/p>\n ACWX has higher fees than VT, making VT more affordable for long-term holders. However, ACWX\u2019s dividend yield of 2.7% outpaces VT\u2019s 1.8%, so investors seeking higher income may find ACWX more attractive on payouts.<\/p>\n Metric<\/p>\n<\/th>\n VT<\/p>\n<\/th>\n ACWX<\/p>\n<\/th>\n<\/tr>\n<\/thead>\n Max drawdown (5 y)<\/p>\n<\/td>\n -26.38%<\/p>\n<\/td>\n -30.06%<\/p>\n<\/td>\n<\/tr>\n Growth of $1,000 over 5 years<\/p>\n<\/td>\n $1,527<\/p>\n<\/td>\n $1,267<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n Launched nearly 18 years ago, ACWX tracks non-U.S. large- and mid-cap stocks, holding 1,796 companies across developed and emerging markets, with a portfolio tilt toward financial services, industrials, and technology. The largest positions are Taiwan Semiconductor Manufacturing (2330.TW)<\/strong>, Tencent Holdings Ltd (0700.HK)<\/strong>, and ASML Holding N.V. (AMS:ASML). <\/strong><\/p>\n VT, by contrast, combines both U.S. and international stocks, covering 10,036 holdings, and has a similar sector mix. Top names include Nvidia <\/strong>(NASDAQ:NVDA)<\/span>, Apple <\/strong>(NASDAQ:AAPL)<\/span>, and Microsoft <\/strong>(NASDAQ:MSFT)<\/span>, with a greater reliance on American companies.<\/p>\n Created only two months apart, VT has substantially outperformed ACWX in the long term, with the Vanguard fund yielding nearly 150% more since 2008. Having nearly 10 times more asset holdings than ACWX helps, and even though VT has a smaller dividend yield, its payout frequency is quarterly, compared to ACWX\u2019s semi-annual frequency, which may be more appealing to investors who prefer more frequent payouts.<\/p>\n This doesn\u2019t mean ACWX doesn\u2019t have its own advantages. The iShares fund has a higher one-year return and a true broad international focus in its top 10 holdings, with companies spanning Asia to Europe. In Vanguard\u2019s fund, its top 10 holdings consist of nine U.S. stocks and one international stock that is the 10th-largest holding.<\/p>\n<\/p><\/div>\n Regarding both ETFs, investors should be aware that international stocks in their holdings can move very differently from U.S. stocks and exhibit volatility that U.S. investors may not be used to. Those foreign stocks may move more closely in line with the relevant country\u2019s economic and political structures and events, which could add more volatility to both ETFs compared to domestic funds.<\/p>\n U.S. investors may want to keep an eye on relevant events in the relevant foreign country or continent to better understand the international stocks associated with each ETF.<\/p>\n ETF (Exchange-traded fund):<\/strong> A pooled investment that trades on an exchange like a stock, tracking an index. For more guidance on ETF investing, check out the full guide at this link.<\/p>\n Ever feel like you missed the boat in buying the most successful stocks? Then you\u2019ll want to hear this.<\/p>\n On rare occasions, our expert team of analysts issues a \u201cDouble Down\u201d stock<\/strong> recommendation\u00a0for companies that they think are about to pop. If you\u2019re worried you\u2019ve already missed your chance to invest, now is the best time to buy before it\u2019s too late. And the numbers speak for themselves:<\/p>\n Nvidia:<\/strong>\u00a0<\/span>if you invested $1,000 when we doubled down in 2009,\u00a0<\/span>you\u2019d have $486,764<\/strong>!*<\/p>\n<\/li>\n Apple:<\/strong> if you invested $1,000 when we doubled down in 2008, you\u2019d have $47,187<\/strong>!*<\/p>\n<\/li>\n Netflix:<\/strong> if you invested $1,000 when we doubled down in 2004, you\u2019d have $464,439<\/strong>!*<\/p>\n<\/li>\n<\/ul>\n Right now, we\u2019re issuing \u201cDouble Down\u201d alerts for three incredible companies<\/span>, available when you join\u00a0<\/span>Stock Advisor<\/em><\/span><\/strong>, and there may not be another chance like this anytime soon.<\/span><\/p>\n See the 3 stocks \u00bb<\/strong><\/p>\n *Stock Advisor returns as of January 20, 2026<\/span><\/em><\/p>\n Ad\u00e9 Hennis has positions in Apple and Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.<\/em><\/p>\n ACWX vs. VT: Comparing Two of the Top Global ETFs was originally published by The Motley Fool<\/p>\n<\/p><\/div>\n\n\n
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Expense ratio:<\/strong> Annual fund operating costs expressed as a percentage of the fund\u2019s average assets.
Dividend yield:<\/strong> Annual dividends paid by a fund or stock divided by its current market price.
Total return:<\/strong> Overall investment gain, including price changes plus dividends, assuming all payouts are reinvested.
Beta:<\/strong> A measure of an investment\u2019s volatility compared with a benchmark index, often the S&P 500.
AUM (Assets under management):<\/strong> Total market value of all assets managed within a fund or by a firm.
Max drawdown:<\/strong> The largest peak-to-trough decline in value over a specified period.
Large-cap stocks:<\/strong> Shares of companies with relatively large market capitalizations, typically established, mature businesses.
Mid-cap stocks:<\/strong> Shares of medium-sized companies, generally between small startups and large, mature corporations.
Developed markets:<\/strong> Countries with mature, advanced economies and well-established financial markets.
Emerging markets:<\/strong> Countries with developing economies and financial markets that are growing but less mature.
Currency hedging:<\/strong> Strategy used by funds to reduce the impact of foreign exchange rate movements on returns.
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