The Vanguard Total International Stock Index ETF is a low-cost, diversified investment option that tracks the performance of the MSCI EAFE Index. It's designed to provide broad exposure to international stocks.
The fund invests in over 3,300 securities from developed and emerging markets worldwide. This includes stocks from countries like the UK, Japan, and Canada.
Investors can buy and sell shares of the ETF through most brokerage platforms, making it easily accessible to individual investors.
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What is Vanguard Total International Stock Index ETF
Vanguard Total International Stock Index ETF is an exchange traded fund launched and managed by The Vanguard Group, Inc. It invests in public equity markets of the global ex-US region.
The fund invests in stocks of companies operating across diversified sectors, including growth and value stocks of companies across diversified market capitalization. It seeks to track the performance of the FTSE Global All Cap ex US Index, by using full replication technique.
Here are some key statistics about the fund's holdings:
The fund was formed on April 29, 1996 and is domiciled in the United States.
Investment Details
The Vanguard Total International Stock Index ETF is a low-cost investment option that offers access to global markets outside of the US.
The ETF is managed by the Vanguard Group, a well-respected firm known for its expertise in providing investors with low-cost ETFs.
The fund's expense ratio is an impressively low 0.08%, well below the sector average for comparable ETFs.
Here's a breakdown of the fund's holdings:
The fund tracks the performance of the FTSE Global All Cap ex US Index, using a full replication technique.
Vanguard Total International Stock Index Fund
The Vanguard Total International Stock Index Fund is a great option for investors looking to diversify their portfolio. It's an exchange-traded fund (ETF) launched and managed by The Vanguard Group, Inc.
The fund invests in public equity markets of the global ex-US region, covering stocks of companies operating across diversified sectors. It seeks to track the performance of the FTSE Global All Cap ex US Index.
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The fund was formed on April 29, 1996, and is domiciled in the United States. It's a well-established investment option with a long history.
Here are some key statistics from the fund's recent performance:
The fund's expense ratio is impressively low at 0.08%, well below the sector average for comparable ETFs.
Suitability
VXUS isn't an appropriate holding for every investor because it carries with it more risk than other broadly focused funds.
Investors adding VXUS to a portfolio are exposed to the risks inherent in 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.
This may result in the fund experiencing greater volatility than other ETFs.
International investing comes with unique challenges, and VXUS is no exception.
Account and Fees
To open a brokerage account for the Vanguard Total International Stock Index ETF, you must buy and sell Vanguard ETF Shares through Vanguard Brokerage Services or another broker.
You can obtain a prospectus or summary prospectus for more information about Vanguard mutual funds and ETFs, including important details about investment objectives, risks, and expenses. Always read and consider the prospectus carefully before investing.
Here are the fees associated with the Vanguard Total International Stock Index ETF:
These fees are subject to change, and you should check the current prospectus for the most up-to-date information.
Open a Brokerage Account
To open a brokerage account, you can visit Vanguard's website to obtain a prospectus or summary prospectus for Vanguard mutual funds and ETFs, which contains important information about investment objectives, risks, and expenses.
You can buy and sell Vanguard ETF Shares through Vanguard Brokerage Services online, where they are offered commission-free, or through another broker who may charge commissions.
All investing involves risk, including the possible loss of the money you invest, and diversification does not ensure a profit or protect against a loss.
Investments in non-U.S. companies are subject to country/regional risk, which can be affected by political upheaval, financial troubles, or natural disasters, and currency risk, which can decrease the value of foreign investments due to unfavorable currency exchange rates.
You can view Vanguard Brokerage Services Commission and Fee Schedules to see the limits on commission-free trading.
Fees
Fees are an essential aspect of managing your account. The Management Fee is 0.07%.
You'll also notice that the Acquired Fund Fees and Expenses are 0.00%. This means you won't have to worry about any additional costs from acquired funds.
Other Expenses are also 0.00%, which is a great sign for your account. The Expense Ratio, which takes into account all these fees, is also 0.07%.
Here's a summary of the fees in a table:
Performance and Dividends
The Vanguard Total International Stock Index ETF offers exposure to global markets, excluding the US, with top countries including Japan, the UK, and Canada.
The fund's dividend potential is influenced by diverse markets like Japan, the UK, Canada, China, France, and Switzerland, as of October 2022.
Investors can expect a broad range of international stocks, with no single country dominating the portfolio.
The fund's focus on the FTSE Global All Cap ex US Index ensures that it tracks the performance of the global market, excluding the US.
As of October 2022, the fund's dividend potential is influenced by various countries, providing a relatively stable source of income for investors.
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Portfolio and Exposure
The Vanguard Total International Stock ETF offers broad exposure to international markets, giving you access to over 6,000 non-U.S. stocks.
This ETF adopts an index-based strategy to mirror the FTSE Global All Cap ex US Index's performance, representing developed and emerging markets, except the US.
The portfolio spans 48 markets, with significant weight in Japan, the UK, Canada, China, France, and Switzerland as of October 31, 2022.
You can use just a few ETFs to invest overseas, and this one provides a diverse portfolio of international stocks in a single, diversified investment.
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Exposure
Exposure to international markets can be achieved with a few ETFs.
You can access a wide variety of international bonds or stocks with Vanguard Total International Bond ETF and Vanguard Total International Stock ETF.
The Vanguard Total International Stock ETF (VXUS) gives you exposure to a diverse portfolio of around 7,718 companies spanning 48 markets.
The fund has significant weight in Japan, the UK, Canada, China, France, and Switzerland as of October 31, 2022.
This level of diversification can provide a stable foundation for your portfolio.
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Sector
Sector is a crucial aspect of any investment portfolio, and understanding how it works can help you make informed decisions about your investments. The VXUS fund, for example, has a sector allocation approach that provides exposure to a diverse range of sectors.
The fund's largest sector allocations are in sectors like Technology, Finance, and Healthcare. This is evident as of October 31, 2022.
This allocation approach ensures comprehensive coverage of global equity market performance.
Frequently Asked Questions
Does Vtiax have an ETF equivalent?
Yes, VTIAX has an ETF equivalent, the Vanguard Total International Stock ETF (VXUS), which offers a lower expense ratio of 0.08%. This ETF is a more cost-effective option for investors seeking to track the same international stock market index.
Sources
- https://www.investing.com/etfs/vanguard-total-intl-stock
- https://investor.vanguard.com/investor-resources-education/etfs/international-etf
- https://www.investopedia.com/articles/investing/122715/vxus-vanguard-international-stock-etf.asp
- https://www.ishares.com/us/products/244048/ishares-core-msci-total-international-stock-etf
- https://etfinsider.co/analysis-quote/vxus
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