The Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) is an exchange-traded fund designed to track the performance of small-cap companies located outside the United States. The ETF is managed by Vanguard and trades under the ticker VSS on the NYSE Arca.

Classified as an international equity ETF, the fund provides exposure to small-cap companies across both developed and emerging markets while excluding U.S.-based companies. Its strategy offers broad geographic diversification and access to the global small-cap segment through a single investment.

The ETF follows a passive management approach and seeks to replicate the performance of the FTSE Global Small Cap ex US Index, a benchmark composed of small-cap companies from developed and emerging markets outside the United States.

Diversification and sector exposure

VSS provides exposure primarily associated with:

• International small-cap stocks.

• Developed markets.

• Emerging markets.

• Industrials.

• Financial services.

• Technology.

• Consumer sectors.

• Global diversification.

The portfolio holds thousands of companies across dozens of countries and multiple industries, providing broad geographic and sector diversification.

The ETF's performance reflects the behavior of international small-cap companies, a market segment that may offer higher long-term growth potential but also greater volatility than large-cap equities.

Structure and costs

VSS shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF's market price with its net asset value (NAV).

The fund carries a low expense ratio, consistent with Vanguard's ETF lineup, and does not apply a performance fee. Dividends received from portfolio holdings may be distributed periodically to shareholders according to the fund's distribution policy.

History and evolution of the ETF

The Vanguard FTSE All-World ex-US Small-Cap ETF was launched in 2009 to provide investors with diversified exposure to international small-cap equities through a single exchange-traded fund.

Since inception, the fund has become a popular choice for investors seeking to complement U.S. equity holdings with smaller companies from both developed and emerging markets.

In recent years, global economic growth, evolving international markets, changes in interest rates, and the continued expansion of smaller companies have remained important factors influencing the performance of the ETF's portfolio.

Additional Information

Vanguard FTSE All-World ex-US Small-Cap Index Fund ETF Shares (United States) is an exchange-traded fund (ETF), with assets under management totaling $11.32 billion.

Over the past 12 months, Vanguard FTSE All-World ex-US Small-Cap Index Fund ETF Shares recorded a return of 16.33%, with its price trading between $136.38 and $162.55 during the same period.

The ETF is traded under the ticker VSS.