Vanguard Total International Stock Index Fund ETF Shares (VXUS)

ETF Overview: Vanguard Total International Stock Index Fund ETF Shares (VXUS)

Profile:

VXUS is an ETF that seeks to track the performance of the FTSE Global All Cap ex US Index. This means it invests in a broad range of large, mid, and small-cap stocks from developed and emerging markets outside the United States. VXUS offers investors diversified exposure to international equities through a single investment.

Objective:

The primary investment goal of VXUS is to provide long-term capital appreciation by replicating the performance of the FTSE Global All Cap ex US Index. It aims to achieve this by investing in a diversified portfolio of international stocks.

Issuer:

Vanguard: A leading global investment management company with over $8 trillion in assets under management. Vanguard is known for its low-cost, index-tracking funds and its commitment to investor education.

Market Share:

VXUS is the second-largest international stock ETF, with a market share of approximately 12%.

Total Net Assets:

As of October 27, 2023, VXUS has approximately $44 billion in total net assets.

Moat:

• Low Cost: VXUS has a low expense ratio of 0.11%, making it one of the most affordable international stock ETFs available.
• Diversification: VXUS provides broad exposure to a wide range of international stocks, reducing individual company risk.
• Brand Recognition: Vanguard is a well-established and respected brand in the investment management industry.

Financial Performance:

• 1-Year Return: 7.2%
• 3-Year Return: 10.5%
• 5-Year Return: 13.8%
• 10-Year Return: 11.2%

Benchmark Comparison: VXUS has outperformed its benchmark, the FTSE Global All Cap ex US Index, over the past 1, 3, 5, and 10 years.

Growth Trajectory:

The long-term outlook for international stocks is positive, driven by factors such as global economic growth and increasing integration of emerging markets. This suggests that VXUS has the potential to continue to grow its assets and outperform its benchmark.

Liquidity:

• Average Trading Volume: Over 10 million shares per day.
• Bid-Ask Spread: Typically around 0.02%.

Market Dynamics:

• Global Economic Growth: Stronger economic growth in developed and emerging markets can positively impact international stock performance.
• Currency Fluctuations: Changes in currency exchange rates can impact the returns of international stocks.
• Geopolitical Events: Political instability and other geopolitical events can create volatility in international markets.

Competitors:

• iShares Core MSCI EAFE ETF (IEFA): Market Share - 14.5%
• iShares MSCI ACWI ex US ETF (ACWX): Market Share - 8.5%
• SPDR Portfolio Developed World ex-US ETF (SPDW): Market Share - 7.2%

Expense Ratio:

0.11%

Investment Approach and Strategy:

• Strategy: VXUS tracks the FTSE Global All Cap ex US Index.
• Composition: Approximately 7,400 stocks across various sectors, including financials, technology, and healthcare.

Key Points:

• Low-cost: One of the cheapest ways to gain diversified exposure to international stocks.
• Diversification: Broad exposure to a wide range of international companies.
• Long-term growth potential: Potential to benefit from global economic growth.

Risks:

• Market Risk: International stocks can be more volatile than U.S. stocks.
• Currency Risk: Changes in currency exchange rates can impact returns.
• Emerging Market Risk: Emerging markets can be more volatile than developed markets.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through international stock exposure.
• Investors who want a low-cost, diversified way to invest in international stocks.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI: 8.5/10

VXUS receives a strong rating based on its low expense ratio, diversified portfolio, strong track record, and potential for future growth. However, investors should be aware of the risks associated with international stocks before investing.

Resources and Disclaimers:

• Vanguard Website: https://investor.vanguard.com/etf/profile/vxus/overview
• Morningstar: https://www.morningstar.com/etfs/vxus/quote
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.