Search results
Global or world ETFs provide exposure to both foreign and U.S. markets. Regional ETFs invest primarily in a specific part of the world, like Europe or the Pacific region. Developed markets ETFs focus on foreign countries with proven economies, like Japan, France, and the United Kingdom.
1 day ago · If you believe that the euro could benefit from a weakening U.S. dollar, this could be a good tactical choice to add to an already diversified portfolio. Like most of our currency ETFs,...
Jan 18, 2024 · Vanguard FTSE Emerging Markets ETF ( VWO) Assets under management: $74.5 billion. Expense ratio: 0.08%. The natural complement to the prior fund, Vanguard offers an "emerging" market fund...
- Overview
- VXUS Characteristics
- Suitability and Risk
As a newer entrant to the international
(ETF) space, the Vanguard Total International Stock ETF (NASDAQ:
) was launched in 2011. Since its inception, VXUS has earned investors an annualized return of 4.67% by tracking the performance of global company stocks listed on the FTSE Global All Cap ex U.S. Index. The target benchmark index follows large-, mid-, and small-cap equities of companies operating outside the United States.
The international equities held within VXUS provide investors with a unique opportunity to diversify a portfolio in both developed and emerging markets around the world. The stock movement of companies based overseas does not always have a direct correlation to domestic stock prices,
to take advantage of market movements that may differ from shifts in U.S. equity markets.
The Vanguard Total International Stock ETF invests at least 95% of all fund assets in an attempt to mimic the performance of the FTSE Global All Cap ex U.S. Index. VXUS is most heavily weighted in Europe, with 39.8% invested in the region, followed by 26.8% in the Pacific, 25.3% in emerging markets, and 7.6% in North America. Top holdings follow suit with the fund's target index, including Taiwan Semiconductor Manufacturing Co., Tencent Holdings, Nestlé, and Samsung Electronics.
VXUS is managed by the Vanguard Group, known widely for its expertise in providing investors access to low-cost ETFs. VXUS implements a
investment strategy that is based on a full replication approach, which assists in keeping the total expense ratio passed on to investors of 0.08% well below the sector average for comparable ETFs.
VXUS is not an appropriate holding for every investor, as it carries with it more risk than other broadly focused funds that include additional asset classes or a combination of domestic and international equities. Investors adding VXUS to a portfolio are exposed to the
risks inherent to international investing
, including emerging country risk, political risk, market risk, and currency risk. Each of these factors can have a drastic effect on international stock holdings like those included in the VXUS company roster, which may result in the fund experiencing greater volatility than other ETFs.
As a small percentage of a comprehensive, diversified portfolio, VXUS is most appropriate for investors seeking growth over the long time horizon. Because of the high level of volatility that can be experienced in the international market, investors with a high tolerance for risk may find this ETF suitable as an international allocation. However, VXUS holds $404.73 billion in net assets and 7,754 stocks within the fund across a broad range of large-, mid-, and small-cap companies as of March 2022, which helps reduce the total risk investors face when adding this ETF to a portfolio.
May 1, 2024 · While any investor can benefit from additional income, money market funds are especially useful for people who are approaching retirement. These funds cater to investors who want more...
Jan 26, 2024 · A few global ETFs are available. Some, like the Vanguard Total World Stock ETF , own American and foreign stocks. Investors who want to own domestic and international stocks can use this fund.
People also ask
What is a vanguard ETF?
What is Vanguard total international stock ETF (vxus)?
Is Vanguard total international stock ETF a good investment?
What are the best global ETFs?
May 2, 2023 · In general, Vanguard recommends that at least 20% of your overall portfolio should be invested in international stocks and bonds. However, to get the full diversification benefits, consider ...
