International vs US
Compare a total international fund against a total US market fund, including foreign-dividend tax character.
VXUS holds the total international market outside the US, while VTI holds the total US market. International funds often carry a higher dividend yield and pass through foreign taxes paid on those dividends.
In a taxable account, foreign taxes paid may be claimable as a foreign tax credit, an offset that is generally unavailable inside an IRA or Roth. This page frames the account-placement question so you can model it directly.
Historical results
Historical results for a $10,000 lump sum with dividends reinvested and monthly rebalancing, as of 2025-12-31. Past performance does not guarantee future results. Not investment advice.
After-tax assumptions: Single filer, $150,000 income, taxable account, HIFO lots, 2026 federal brackets, no state tax.
Run it live with your own dates and tax profileWhat is the foreign tax credit consideration here?
International funds pay foreign taxes on their dividends. In a taxable account those taxes may be claimable as a foreign tax credit, which is generally not available inside an IRA or Roth. That can influence where investors place international exposure.
Does the backtest model the foreign tax credit?
The backtest applies the tax assumptions you configure. Treat the foreign tax credit as an account-placement consideration to review, not an automatically optimized output, and confirm details with a tax professional.
Run this comparison with your own dates, account type, and tax profile.
Open the prefilled backtest