Vanguard Total International Stock Index Fund ETF Shares (VXUS)

Overview

The Vanguard Total International Stock Index Fund ETF Shares (VXUS) seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in developed and emerging markets, excluding the U.S. It offers broad diversification across international equities.

Reputation and Reliability

Vanguard is one of the world's largest investment management companies, known for its low-cost, passively managed funds and strong reputation for reliability and investor-focused approach.

Management Expertise

Vanguard has a highly experienced and well-regarded management team with a long track record in managing index funds and ETFs.

Goal

To track the performance of a benchmark index that measures the investment return of stocks issued by companies located in developed and emerging markets, excluding the U.S.

Investment Approach and Strategy

Strategy: VXUS employs a passive management strategy, attempting to replicate the FTSE Global All Cap ex US Index.

Composition The ETF holds a diversified portfolio of international stocks from both developed and emerging markets. It typically includes thousands of stocks.

Market Share: VXUS holds a significant market share in the international equity ETF category.

Total Net Assets (AUM): 309000000000

Key Competitors

• iShares Core MSCI EAFE ETF (IEFA)
• iShares MSCI Emerging Markets ETF (EEM)
• Schwab International Equity ETF (SCHF)

Competitive Landscape

The international equity ETF market is highly competitive, with several large players offering similar products. VXUS benefits from Vanguard's low-cost structure and brand recognition. Competitors often focus on specific market segments or utilize different indexing methodologies. VXUS offers total market coverage which could be an advantage. Some competitors are cheaper.

Historical Performance: Historical performance varies with international market performance. For example, the 10-year average is ~5%.

Benchmark Comparison: The ETF's performance closely tracks its benchmark, the FTSE Global All Cap ex US Index.

Expense Ratio: 0.07

Average Trading Volume

VXUS exhibits high liquidity, typically characterized by a substantial average daily trading volume.

Bid-Ask Spread

The bid-ask spread is generally tight, reflecting the ETF's high trading volume.

Market Environment Factors

Global economic growth, trade policies, currency fluctuations, and geopolitical events influence VXUS's performance. Also, interest rate changes in the various countries impacts the stock prices.

Growth Trajectory

Growth is tied to international equity market performance. Any major changes to investment strategy or holdings would be publicly disclosed and communicated.

Competitive Edge

VXUS's competitive edge lies in its low expense ratio, broad diversification, and the strong reputation of Vanguard. The ETFu2019s passive management style ensures that it closely tracks its benchmark index, minimizing tracking error. Vanguard's commitment to low costs makes VXUS an attractive option for investors seeking cost-effective international equity exposure. VXUS's scale allows for efficient trading and low transaction costs. The fundu2019s extensive holdings reduce concentration risk.

Volatility

VXUS's volatility is commensurate with international equity markets, which can be higher than U.S. markets.

Market Risk

VXUS is subject to market risk, including currency risk, political risk, and economic risk specific to international markets.

Ideal Investor Profile

VXUS is suitable for investors seeking broad exposure to international equities for diversification purposes.

Market Risk

VXUS is well-suited for long-term investors and passive index followers seeking diversified international equity exposure.

Vanguard Total International Stock Index Fund ETF Shares (VXUS) offers a low-cost and diversified way to invest in international equities, excluding the U.S. It tracks the FTSE Global All Cap ex US Index, providing broad market coverage across developed and emerging markets. Its low expense ratio and Vanguard's strong reputation make it an attractive option for long-term investors seeking cost-effective international diversification. However, investors should be aware of the inherent risks associated with international investing, including currency risk and political risk. VXUS is a solid choice for enhancing portfolio diversification and participating in global economic growth beyond the U.S.

Data Sources:

• Vanguard.com
• Morningstar.com
• ETF.com

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investment decisions should be based on individual circumstances and consultation with a financial advisor.