If Your Portfolio Is Too American, VXUS Is The Simple Fix
Briefly

If Your Portfolio Is Too American, VXUS Is The Simple Fix
"VXUS returned 30.5% over the past 12 months, edging out the 26.7% from SPY and the 27% from VTI. This is the first time in a long time that the 'rest of the world' trade has actually paid the rent."
"VXUS is designed to solve a single, specific problem. If you own VTI or an S&P 500 fund, you have zero exposure to companies headquartered outside the United States, which means you are missing roughly 40% of global market capitalization."
"The fund holds 8,862 stocks across both developed and emerging markets, which is another way of saying VXUS is basically the entire non-American investable world in one line item on your statement."
"The return engine is straightforward. VXUS makes money when foreign companies grow their earnings, when foreign currencies strengthen against the dollar, and when international valuations re-rate higher relative to US peers."
VXUS returned 30.5% over the past year, surpassing the S&P 500's 26.7% and VTI's 27%. This fund addresses the lack of international exposure in typical U.S.-focused portfolios, capturing 99% of global market capitalization outside the U.S. It holds 8,862 stocks from developed and emerging markets, representing the entire non-American investable world. VXUS profits from foreign earnings growth, currency strength, and higher international valuations, with a low management fee of 0.05%. This performance suggests a shift in investment strategy may be necessary for American investors.
Read at 24/7 Wall St.
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