SWISX vs VXUS: A Reddit-Driven Comparison for International Investors

SWISX vs VXUS: Key Differences and Reddit Insights

When comparing international stock funds, Schwab International Index Fund (SWISX) and Vanguard Total International Stock ETF (VXUS) are two popular choices. Both aim to provide exposure to non-U.S. markets, but their strategies and structures differ. This article breaks down their features, performance, and what Reddit investors say about them.

What Are SWISX and VXUS?

Schwab International Index Fund (SWISX)

• Tracks the MSCI EAFE Index (Europe, Australasia, Far East).
• Expense ratio: 0.06%.
• Excludes emerging markets and small-cap stocks.
• Mutual fund structure with a $1 minimum investment.

Vanguard Total International Stock ETF (VXUS)

• Tracks the FTSE Global All Cap ex US Index.
• Expense ratio: 0.08%.
• Includes emerging markets and small-cap stocks.
• ETF structure with no minimum investment.

SWISX vs VXUS: Key Differences

• Market Coverage: VXUS includes 7,900+ stocks vs. SWISX’s 900+.
• Emerging Markets: VXUS has ~25% exposure; SWISX has none.
• Fees: SWISX is slightly cheaper (0.06% vs. 0.08%).
• Structure: SWISX is a mutual fund; VXUS is an ETF.

Performance Comparison

Over the past 5 years, VXUS has underperformed SWISX slightly due to emerging market drag. However, long-term performance varies based on market cycles. Reddit users note SWISX’s lower volatility but emphasize VXUS’s diversification benefits.

Reddit User Opinions: SWISX vs VXUS

• Pro-SWISX: “I prefer SWISX for its lower fees and focus on developed markets.” – r/investing user.
• Pro-VXUS: “VXUS’s emerging market exposure adds growth potential.” – r/Bogleheads comment.
• Tax Efficiency: ETF structure makes VXUS more tax-friendly, per r/financialindependence.

Which Fund Should You Choose?

• Pick SWISX if: You want lower fees, avoid emerging markets, or use Schwab’s platform.
• Pick VXUS if: You prioritize diversification, tax efficiency, or use Vanguard/Fidelity.

FAQ: SWISX vs VXUS

1. Does SWISX include emerging markets?

No. SWISX tracks developed markets only (MSCI EAFE).

2. Is VXUS better for long-term holding?

Reddit users favor VXUS for its broader diversification, which may reduce risk over decades.

3. Which has lower fees?

SWISX (0.06%) is marginally cheaper than VXUS (0.08%).

4. Can I hold both SWISX and VXUS?

Yes, but overlap exists. Most investors choose one for simplicity.

5. Which is more tax-efficient?

VXUS (ETF) typically generates fewer taxable events than SWISX (mutual fund).