25 Facts About VXUS

What is VXUS?

VXUS stands for Vanguard Total International Stock ETF. This exchange-traded fund (ETF) offers investors exposure to a wide range of international stocks. Let's dive into some fascinating facts about VXUS.

1. VXUS includes stocks from both developed and emerging markets. This means it provides a broad exposure to global equities outside the United States.

2. The ETF tracks the FTSE Global All Cap ex US Index. This index includes large, mid, and small-cap stocks from around the world, excluding the U.S.

3. VXUS was launched on January 26, 2011. It has been providing international exposure to investors for over a decade.

4. The fund has a low expense ratio of 0.07%. This makes it a cost-effective option for investors looking to diversify globally.

5. VXUS holds over 7,000 stocks. This extensive diversification helps reduce the risk associated with investing in individual stocks.

Performance and Dividends

Understanding the performance and dividend distribution of VXUS can help investors make informed decisions.

6. VXUS pays quarterly dividends. Investors receive a portion of the profits generated by the underlying stocks every three months.

7. The ETF has a history of stable performance. While past performance doesn't guarantee future results, VXUS has shown resilience over the years.

8. VXUS's dividend yield is around 2.5%. This yield can vary based on market conditions and the performance of the underlying stocks.

9. The fund's total net assets exceed $50 billion. This large asset base indicates strong investor confidence and liquidity.

10. VXUS is traded on the NYSE Arca. This exchange is known for its electronic trading platform, ensuring efficient and transparent transactions.

Geographic and Sector Exposure

VXUS offers exposure to various regions and sectors, providing a well-rounded investment option.

11. The ETF has significant exposure to Europe. European stocks make up a large portion of the fund's holdings.

12. Asia-Pacific is another major region represented in VXUS. Countries like Japan, China, and Australia contribute to the fund's diversification.

13. VXUS includes stocks from over 40 countries. This global reach helps investors tap into growth opportunities worldwide.

14. The fund covers multiple sectors. These include financials, consumer goods, technology, healthcare, and more.

15. Financials is the largest sector in VXUS. This sector represents a significant portion of the fund's holdings.

Benefits of Investing in VXUS

Investing in VXUS offers several advantages for those looking to diversify their portfolios.

16. VXUS provides exposure to international markets. This diversification can help reduce the risk associated with a U.S.-centric portfolio.

17. The ETF offers a low-cost way to invest globally. With its low expense ratio, VXUS is an affordable option for international exposure.

18. VXUS is highly liquid. Investors can buy and sell shares easily due to the fund's large asset base and trading volume.

19. The fund is managed by Vanguard. Vanguard is known for its expertise in managing index funds and ETFs.

20. VXUS can be a core holding in a diversified portfolio. Its broad exposure makes it suitable for long-term investors.

Risks and Considerations

While VXUS offers many benefits, it's important to be aware of the potential risks and considerations.

21. Currency risk is a factor. Since VXUS invests in international stocks, fluctuations in currency exchange rates can impact returns.

22. Political and economic instability can affect performance. Events in foreign countries can influence the value of the underlying stocks.

23. The ETF may underperform during periods of U.S. market strength. When U.S. stocks outperform international stocks, VXUS may lag behind.

24. Emerging markets can be volatile. While they offer growth potential, they also come with higher risks compared to developed markets.

25. Investors should consider their risk tolerance. VXUS is suitable for those comfortable with the risks associated with international investing.

The Final Word on VXUS

VXUS, Vanguard’s Total International Stock ETF, offers a broad exposure to global markets. It includes stocks from both developed and emerging markets, giving investors a diversified portfolio. With low expense ratios, it’s a cost-effective way to invest internationally. The fund’s performance has been solid, reflecting the growth of global economies. However, like all investments, it comes with risks, especially due to currency fluctuations and geopolitical events.

Investing in VXUS can be a smart move for those looking to diversify beyond U.S. borders. It’s a straightforward way to gain access to a wide range of international stocks without having to pick individual companies. Always consider your financial goals and risk tolerance before investing. VXUS could be a valuable addition to a well-rounded investment strategy. Happy investing!