Vanguard Total International Stock Index ETF (VXUS) is a popular ETF that tracks the performance of the FTSE Global All Cap ex US Index. The index includes all stocks from developed and emerging markets outside of the United States. VXUS provides investors with access to a comprehensive global investment at a low cost. In this article, we will explore the features of VXUS and compare it to similar Vanguard ETFs.
VXUS holds more than 7,500 stocks from 47 countries, including both developed and emerging markets. The ETF has a diversified portfolio with exposure to different market sectors and industries. The top countries represented in the portfolio are Japan, the United Kingdom, and China, with each country accounting for around 8% of the total portfolio. The ETF is passively managed, meaning it aims to replicate the performance of the underlying index rather than beat it.
The expense ratio for VXUS is 0.08%, making it one of the lowest-cost international ETFs available. The low expense ratio is a result of Vanguard's commitment to providing low-cost investment options to its clients. The ETF has a market capitalization of $55.1 billion and 990 million shares outstanding. VXUS has a P/E ratio of 12.4, which is in line with the average P/E ratio for international stocks.
VXUS is a popular ETF among US investors, particularly those who are looking to diversify their portfolio with international stocks. According to the Financial Times, US investors poured approximately $18 billion into international equity ETFs in January, which was the largest monthly inflow. The popularity of VXUS is due to its low cost, diversification, and exposure to global markets.
Vanguard's brand is synonymous with broadly diversified passive index funds with low expense ratios. VXUS is no exception. The ETF captures nearly all of the international stock market for a low fee. Most share classes earn a Morningstar rating of Gold or Silver, indicating that they are well-suited for long-term investors. The ETF is also available in different share classes, including Admiral Shares and ETF Shares, giving investors the option to choose the class that best suits their needs.
Investments are personalized choices, and no one portfolio is appropriate for all people. Regardless of what generation you're in, VXUS can be a fundamental part of your stock portfolio going forward. The ETF provides investors with exposure to global markets, which can help offset risks associated with investing in a single country or region. Diversification is key to building a well-balanced portfolio, and VXUS can help achieve that diversification.
This has been a terrible year for global markets. Hence, dividend ETFs have remained in vogue and would likely to be stars in 2023 as well. However, with rising uncertainties negatively impacting market sentiment, investors may want to spread their bets with the best ETFs to buy. VXUS is a good option for those seeking broad international diversification without the high fees associated with actively managed funds.
Vanguard has two international ETFs that can add the right international mix to your portfolio: VXUS and Vanguard FTSE Developed Markets ETF (VEA). Both ETFs provide exposure to international markets, but they differ in their portfolio composition. VXUS is a more comprehensive ETF, while VEA focuses on developed markets. Investors should consider their investment goals and risk tolerance before choosing between the two ETFs.
In conclusion, VXUS is a low-cost, broadly diversified ETF that captures nearly all of the international stock market. The ETF provides investors with exposure to global markets, which can help offset risks associated with investing in a single country or region. VXUS is a popular ETF among US investors due to its low cost, diversification, and exposure to global markets. The ETF is a good option for those seeking broad international diversification without the high fees associated with actively managed funds.
