VXUS Morningstar: A 5,000-Fund Global Investment

VXUS, the Vanguard Total International Stock ETF, is a popular choice for investors seeking exposure to the global stock market outside the United States. With over 5,000 stocks in its portfolio, VXUS offers investors a diversified way to invest in the world's largest and most developed economies.

Key Features of VXUS

• Broad diversification: VXUS provides exposure to over 5,000 stocks across 44 countries, giving investors a truly global investment.
• Low cost: With an expense ratio of just 0.07%, VXUS is one of the most affordable ways to invest in international stocks.
• Passive management: VXUS is passively managed, meaning that it tracks an index rather than being actively managed by a portfolio manager. This can help to reduce costs and improve returns over the long term.
• Tax efficiency: VXUS is a tax-efficient investment, as it is domiciled in Ireland, which has a favorable tax treaty with the United States.

Performance of VXUS

VXUS has performed well over the long term. Over the past 10 years, VXUS has returned an average of 6.9% per year, compared to 7.8% for the S&P 500 index. However, it is important to note that past performance is not a guarantee of future results.

How to Invest in VXUS

VXUS is available for purchase through most major brokerages. You can buy shares of VXUS just like you would any other stock.

Pros and Cons of VXUS

Pros:

• Diversification: VXUS provides broad exposure to the global stock market, which can help to reduce risk.
• Low cost: VXUS is one of the most affordable ways to invest in international stocks.
• Passive management: VXUS is passively managed, which can help to reduce costs and improve returns over the long term.
• Tax efficiency: VXUS is a tax-efficient investment, as it is domiciled in Ireland, which has a favorable tax treaty with the United States.

Cons:

• Currency risk: VXUS is exposed to currency risk, as the value of the U.S. dollar can fluctuate against other currencies.
• Political risk: VXUS is exposed to political risk, as changes in government policies can affect the value of investments.
• Less developed markets: VXUS invests in less developed markets, which can be more volatile than developed markets.

Conclusion

VXUS is a well-diversified, low-cost, and tax-efficient way to invest in the global stock market. However, it is important to understand the risks involved before investing.