Better Global ETF: Vanguard's VT vs. the iShares URTH
Key Points
The Vanguard Total World Stock ETF offers a significantly lower expense ratio than the iShares MSCI World ETF.
The iShares MSCI World ETF focuses exclusively on developed markets, while the Vanguard Total World Stock ETF includes exposure to emerging economies.
The Vanguard Total World Stock ETF maintains a much larger portfolio with 9,773 holdings compared to 1,253 for iShares MSCI World ETF.
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The Vanguard Total World Stock ETF (NYSEMKT:VT) and the iShares MSCI World ETF (NYSEMKT:URTH) both offer broad global equity exposure, but they differ significantly in cost, diversification, and geographic reach.
These ETFs are designed for investors seeking comprehensive equity exposure in a single ticker. While the iShares fund concentrates on large- and mid-cap companies in developed nations, the Vanguard fund provides a truly global reach by including thousands of small-cap stocks and emerging-market companies.
Snapshot (cost & size)
| Metric | URTH | VT |
|---|---|---|
| Issuer | iShares | Vanguard |
| Share price | $206.77 (as of 2026-09-18) | $158.55 (as of 2026-09-18) |
| Expense ratio | 0.24% | 0.06% |
| 1-yr return (as of 2026-09-18) | 16.3% | 17.4% |
| Dividend yield | 1.4% | 1.8% |
| Beta | 0.95 | 0.92 |
| AUM | $8.2 billion | $101.7 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard fund is more affordable with an expense ratio of 0.06%, which is notably lower than the 0.24% charged by the iShares fund. Additionally, the Vanguard fund provides a higher payout with a 1.8% yield.
Performance & risk comparison
| Metric | URTH | VT |
|---|---|---|
| Max drawdown (5 yr) | (26.1%) | (26.4%) |
| Growth of $1,000 over 5 years (total return) | $1,719 | $1,672 |
What's inside
The Vanguard Total World Stock ETF tracks a massive portfolio of 9,773 holdings, providing exposure across technology (30%), financial services (16%), and industrials (11%). Its largest positions include Nvidia (NASDAQ:NVDA) at 4.32%, Apple (NASDAQ:AAPL) at 3.84%, and Microsoft (NASDAQ:MSFT) at 3.16%. The fund was launched in 2008, and has paid $2.89 (trailing 12-month total) per share over the trailing 12 months, which on its recent ~$158.55 share price works out to a 1.8% yield.
In contrast, the iShares MSCI World ETF holds 1,253 positions, focusing on developed markets with weights in technology (31%), financial services (16%), and industrials (11%). Its top holdings include Nvidia at 5.62%, Apple at 5.43%, and Microsoft at 3.83%. This fund was launched in 2012, and has paid $2.84 (trailing 12-month total) per share over the trailing 12 months, which on its recent ~$206.77 share price works out to a 1.4% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
Both the Vanguard Total World Stock ETF (VT) and iShares MSCI World ETF (URTH) offer investors an efficient way to own shares in top companies from around the globe. However, between these two, I would choose the Vanguard fund for several reasons.
One of the key factors is that VT includes businesses in emerging markets while URTH does not. This not only makes VT a truly global fund, it gives investors exposure to key companies that are part of the artificial intelligence boom. For example, VT's holdings include Taiwan Semiconductor Manufacturing Company (NYSE:TSM), the manufacturer of Nvidia's AI semiconductor chips, and South Korean memory giant SK Hynix (NASDAQ:SKHY), which produces the computer memory AI systems rely on. You don’t get them in the URTH fund.
In addition, VT charges a far lower expense ratio, making it an affordable ETF to hold for the long term, and it offers a higher dividend yield. Its AUM is also much larger, providing it with excellent liquidity. All of these factors make VT the more well-rounded ETF.
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Robert Izquierdo has positions in Apple, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
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