Vanguard Total International Stock: A Comprehensive Guide

Vanguard Total International Stock (VGTSX) is a widely diversified international stock index fund that offers investors exposure to a broad range of developed and emerging markets. With a low expense ratio of just 0.03% and a long track record of solid performance, VGTSX has become a popular choice for investors seeking international diversification.

Key Features of VGTSX

• Globally Diversified: VGTSX invests in over 6,000 stocks from more than 50 countries, providing investors with broad exposure to global markets.
• Low Cost: The fund's expense ratio of 0.03% is among the lowest in the industry, making it an attractive option for investors looking to reduce their investment expenses.
• High Liquidity: VGTSX is highly liquid, with average daily trading volume exceeding $200 million, ensuring that investors can easily enter and exit positions.
• Dividend Yield: VGTSX currently pays a dividend yield of approximately 2.5%, providing investors with a source of income.

Performance History

VGTSX has a strong track record of performance, outperforming the MSCI All-Country World ex-US Index, a widely recognized benchmark for international stocks, over the long term.

• 5-Year Annualized Return: 8.4%
• 10-Year Annualized Return: 10.3%
• Since Inception (1996): 8.1%

Why VGTSX Matters

International diversification is an important component of a balanced investment portfolio. By investing in international stocks, investors can reduce their overall portfolio risk and potentially enhance their returns. VGTSX provides a convenient and cost-effective way to access international markets.

Benefits of Investing in VGTSX

• Global Diversification: VGTSX reduces portfolio risk by providing exposure to a wide range of international markets.
• Potential for Higher Returns: International stocks have historically outperformed U.S. stocks over the long term.
• Lower Volatility: International stocks tend to be less volatile than U.S. stocks, providing a smoother investment experience.
• Low Cost: VGTSX's low expense ratio makes it an attractive option for investors looking to minimize investment expenses.

Effective Strategies for Investing in VGTSX

• Long-Term Investment: VGTSX is a long-term investment vehicle. Investors should be prepared to hold the fund for at least five years to fully realize its potential.
• Regular Rebalancing: Rebalancing your portfolio regularly helps to ensure that your asset allocation remains aligned with your risk tolerance and investment goals.
• Dollar-Cost Averaging: Investing a fixed amount of money in VGTSX on a regular basis can help to reduce the impact of market volatility on your investment returns.

4 Useful Tables

Table 1: Top 10 Holdings

Table 2: Regional Exposure

Table 3: Sector Exposure

Table 4: Historical Performance

FAQs

• What is the minimum investment for VGTSX?

• The minimum investment for VGTSX is $3,000.

  

• Is VGTSX a good investment for beginners?

• Yes, VGTSX is a suitable investment for beginners due to its low cost, broad diversification, and solid track record.

• Does VGTSX pay dividends?

  

• Yes, VGTSX pays a dividend yield of approximately 2.5%.

• How do I buy VGTSX?

• You can buy VGTSX through a broker or directly from Vanguard.

• What is the difference between VGTSX and VTIAX?

• VGTSX invests in developed markets only, while VTIAX invests in both developed and emerging markets.

• Is VGTSX a good choice for retirement?

• VGTSX can be a good choice for retirement due to its low cost, diversification, and potential for growth.

• What is the risk of investing in VGTSX?

• VGTSX carries the risk of currency fluctuations, interest rate changes, and geopolitical events that can affect international markets.

• How often should I rebalance my portfolio with VGTSX?

• It is recommended to rebalance your portfolio with VGTSX annually or whenever your asset allocation deviates significantly from your target.