VXUS Delivers International Exposure at a Lower Cost Than ACWX

Vanguard Total International Stock ETF (NASDAQ:VXUS) and iShares MSCI ACWI ex US ETF (NASDAQ:ACWX) some connection wide non-U.S. equity exposure, but VXUS is importantly cheaper, holds acold much stocks, and tilts little toward financials and exertion than ACWX.

Both funds purpose to present diversified entree to planetary equities, targeting developed and emerging markets extracurricular the United States. This examination explores however their costs, holdings, assemblage tilts, and caller show whitethorn substance for investors seeking planetary diversification.

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

VXUS is considerably much affordable with an disbursal ratio of 0.05%, portion ACWX charges 0.32%. VXUS besides provides a higher dividend output astatine 3.1% compared to ACWX’s 2.7% payout.

ACWX tracks large- and mid-cap companies extracurricular the U.S. and presently holds 1,751 stocks. ACWX has a money property of 17.8 years. It is astir heavy weighted toward fiscal services (25%), exertion (15%), and industrials (15%). Its apical holdings see Taiwan Semiconductor Manufacturing, Tencent Holdings Ltd, and Asml Holding Nv, collectively making up a notable stock of assets.

VXUS, by contrast, is broader, holding 8,602 stocks crossed developed and emerging markets, and presently leans heavy into currency and others (53%), with smaller slices successful industrials and technology. Its largest positions—Taiwan Semiconductor Manufacturing Co Ltd, Tencent Holdings Ltd, and ASML Holding NV—mirror ACWX’s, but marque up a smaller information of the portfolio, resulting successful little attraction risk. Neither money employs leverage, hedging, oregon ESG screens.

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The U.S. banal marketplace is the largest and astir influential around. However, investors would bash good to retrieve that it is not each the satellite has to offer. There are galore dynamic foreign-based companies listed connected banal markets extracurricular of the U.S. worthy considering. For those who are looking to summation planetary exposure, determination are plentifulness of ETFs to take from, including Vanguard Total International Stock ETF (VXUS) and iShares MSCI ACWI ex US ETF (ACWX). Here's what investors should cognize astir them.