The Vanguard Total International Stock ETF (VXUS)<\/strong> has been another gem in my long-term retirement portfolio alongside Vanguard Total Stock Market ETF (VTI)<\/a>. In the past, I also owned a small percentage of the Vanguard Emerging Markets ETF (VWO). If you analyze VXUS, you\u2019ll notice that it contains 25.20% of Emerging Market stocks which is sufficient as per my risk requirements and exposure to emerging markets. I then sold VWO and added the money to VXUS.<\/p>\n\n\n\n
VXUS is a broad market ETF (7776 stocks<\/strong>) which tracks the performance of the FTSE Global All Cap ex US Index. It consists of a well-diversified mix of stocks from developed nations as well as emerging markets. This ETF is great for those who want one fund with exposure to top equities in the world excluding US stocks.<\/p>\n\n\n\n
A well-diversified stock portfolio needs stocks by varying market cap as well geographies. As I explained in my article on VTI<\/a>, you can add world (excluding US) diversification to your portfolio by adding a certain % to VXUS. Ex: instead of investing in a target retirement fund, a 30 yr old investor can construct a simple 3 ETF portfolio using:<\/p>\n\n\n\n
VTI (Vanguard Total Stock Market ETF<\/a>) : 60%
VXUS (Vanguard Total International Stock ETF) : 30%
BND (Vanguard Total Bond Market ETF) : 10%<\/p>\n\n\n\n
Total number of stocks: 7776<\/strong>
Total fund assets: $402.0 billion<\/strong>
Low expense ratio of 0.08%<\/strong> which is $8 per year in fees for every $10,000 invested in VXUS.
The 10 largest stock holdings make up 9.6% of total net assets.
The largest region invested in is Europe: 40.20%<\/strong>
Average annual returns since inception (01\/26\/2011) is 5.23%<\/strong><\/p>\n\n\n\n