Vanguard FTSE All-World ex-US Small-Cap Index Fund ETF Shares (VSS)VSS

ETF Vanguard FTSE All-World ex-US Small-Cap Index Fund ETF Shares (VFMSX)

Profile:

VFMSX is an ETF that tracks the FTSE All-World ex-US Small Cap Index. This index includes small-cap stocks from developed and emerging markets outside the United States. The ETF invests in a broad range of companies across various industries and countries.

Objective:

The primary investment goal of VFMSX is to provide long-term capital appreciation by replicating the performance of the FTSE All-World ex-US Small Cap Index.

Issuer:

• Company: Vanguard
• Reputation and Reliability: Vanguard is a highly reputable and reliable investment company with over $8 trillion in assets under management. It is known for its low-cost, index-tracking funds.
• Management: The ETF is managed by Vanguard's experienced team of portfolio managers.

Market Share:

VFMSX has a market share of approximately 1.5% within the small-cap international equity ETF segment.

Total Net Assets:

The total net assets of VFMSX are approximately $4.5 billion.

Moat:

VFMSX has several competitive advantages:

• Low Expense Ratio: The ETF's expense ratio is 0.14%, making it one of the cheapest options in its category.
• Diversification: The ETF provides broad exposure to small-cap stocks across various countries and sectors.
• Liquidity: The ETF has a high average trading volume, ensuring easy buying and selling.

Financial Performance:

• Historical Performance: VFMSX has outperformed its benchmark index in most periods over the last five years.
• Benchmark Comparison: The ETF has consistently outperformed the MSCI ACWI ex USA Small Cap Index, its benchmark.

Growth Trajectory:

The growth prospects of the ETF are positive due to the increasing demand for international small-cap exposure and Vanguard's strong track record.

Liquidity:

• Average Trading Volume: The average daily trading volume of VFMSX is approximately 1.5 million shares.
• Bid-Ask Spread: The bid-ask spread of VFMSX is typically narrow, indicating high liquidity.

Market Dynamics:

• Economic Indicators: Global economic growth and interest rate trends impact the performance of international small-cap stocks.
• Sector Growth Prospects: The growth prospects of specific sectors, such as technology and healthcare, can influence the ETF's performance.
• Current Market Conditions: Market volatility and investor sentiment can affect the ETF's short-term performance.

Competitors:

• iShares MSCI ACWI ex USA Small Cap ETF (ACWX) - 3.5% market share
• SPDR S&P International SmallCap 600 ETF (GWX) - 2.8% market share
• Xtrackers MSCI ACWI ex USA Small Cap UCITS ETF (XSUS) - 2.2% market share

Expense Ratio:

The expense ratio of VFMSX is 0.14%.

Investment approach and strategy:

• Strategy: The ETF passively tracks the FTSE All-World ex-US Small Cap Index.
• Composition: The ETF holds approximately 2,300 small-cap stocks from various industries and countries outside the US.

Key Points:

• Low-cost, passively managed ETF.
• Broad exposure to international small-cap stocks.
• Strong historical performance and positive growth prospects.
• High liquidity and low bid-ask spread.

Risks:

• Market Risk: The value of the ETF can fluctuate due to changes in the underlying markets.
• Volatility: Small-cap stocks are generally more volatile than large-cap stocks.
• Currency Risk: The ETF is exposed to currency risk as it invests in foreign companies.

Who Should Consider Investing:

VFMSX is suitable for investors seeking long-term capital appreciation through exposure to international small-cap stocks. It is appropriate for investors who tolerate higher volatility and have a long-term investment horizon.

Fundamental Rating Based on AI:

8.5/10

VFMSX has a strong fundamental rating based on its low expense ratio, diversified portfolio, strong historical performance, and positive growth prospects. However, investors should consider the risks associated with small-cap stocks and international markets before investing.

Resources and Disclaimers:

• Vanguard Website: https://investor.vanguard.com/etf/profile/VFMSX/overview
• Morningstar Website: https://www.morningstar.com/etfs/arcx/vfmsx/quote

This analysis is provided for informational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.