The author assigns a "hold" rating to VXUS, projecting accelerated growth combined with persistent inflation in the second half of the year—an unfavorable scenario for global ex-US equities; The US accounts for 64% of global market cap (up from 42% in 2008), supported by earnings that exceed the rest of the world. US, Japan, Eurozone, and ex-US equities are trading above their historical P/E averages, only emerging markets appear to be at fair value.
The Vanguard Total International Stock ETF (NASDAQ:VXUS) is the default choice for most investors who want exposure to companies outside the United States.
An international equity sleeve inside a taxable account has a quieter tax drag than a business development company (BDC) or mortgage real estate investment trust (REIT), but it is not trivial.
Vanguard Total International Stock Index ETF benefited from the fifth-largest inflow of cash over the year-to-date period. The ETF provides U.S. investors with something that they may be missing.
For five years, the case for international diversification has felt theoretical. Vanguard Total International Stock Index Fund ETF Shares (NASDAQ:VXUS | VXUS Price Prediction) is the cleanest way to own roughly half of global market capitalization, yet U.S.
Vanguard Total International Stock Index Fund ETF has attractive valuations, a 2.77% TTM dividend yield, and broad diversification across developed and emerging markets. VXUS [IMO] trades at a 35% forward discount to the S&P 500, with a P/E of 16.9x and EPS growth of 14.3%, supporting a bullish medium-term outlook. Key catalysts include fiscal expansion in Europe and Japan, as well as potential FX tailwinds from a weaker dollar, enhancing VXUS's return potential.
Davidson Kahn Capital Management LLC boosted its holdings in shares of Vanguard Total International Stock ETF (NASDAQ: VXUS) by 69.5% in the undefined quarter, according to its most recent Form 13F filing with the SEC. The firm owned 35,399 shares of the company's stock after buying an additional 14,515 shares during the period.
Explore how cost, yield, and sector focus set these global ETFs apart for investors seeking international exposure.
U.S. investors tend to have a strong home country bias.
Vanguard Total International Stock Index Fund ETF (VXUS) has underperformed VTI over the past decade, but I rate VXUS a Buy. VXUS offers genuine diversification, with far less top-10 concentration than VTI and exposure across sectors and geographies. Valuations and fundamentals for VXUS are more supportive today, and recent return patterns suggest potential for meaningful divergence.
The S&P 500's above-average performance in the past decade has been boosted by the rising dominance of powerful technology companies. The smartest investors are wondering if the U.S. stock market is about to enter a period of subpar performance.
Vanguard Total International Stock ETF earns a Buy rating, with a recommended 10-20% allocation in diversified portfolios. VXUS trades at a significant valuation discount to US equities, with a trailing P/E of 16.9x versus the S&P 500's 29x. Structural catalysts in Europe, Japan, and emerging Asia, combined with accelerating earnings growth, support a durable multi-year international equity rally.