VXUS: There Are Good Reasons Why It Continues To Underperform The S&P 500
Orthodox investment practice allocates a third or more of total assets to Ex-US Funds. Compared to U.S.-only investment, this has led to dramatic underperformance lasting over a decade. We examine the reasons why The Vanguard Total International Stock Market ETF has done so poorly by looking closely at its holdings. We also list several persistent qualitative factors that suggest broad market international ETFs will not see their performance improve over the long term.
VXUS: Why I'm Buying This International Stock ETF With A 3% Yield
Vanguard Total International Stock Index Fund ETF focuses on global companies with dividends. Reducing exposure to U.S. stocks and increasing exposure to global stocks could make sense right now. Top holdings include Taiwan Semiconductor, Novo Nordisk, and ASML Holding NV, each representing less than 2% of the portfolio.
