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The Vanguard Total World Stock ETF (VT) is an exchange-traded fund that seeks to track the performance of an index representing the global equity market, including companies from both developed and emerging countries. The ETF is managed by Vanguard Group Inc. and trades under the ticker VT on NYSE Arca.
Classified as an international equity ETF, VT aims to reflect, before fees and expenses, the performance of the stocks that make up its benchmark index. To achieve this objective, the fund employs a passive management strategy, maintaining a portfolio that seeks to replicate the composition and weighting of the index.
VT’s benchmark index is composed of thousands of publicly traded companies worldwide, spanning developed and emerging markets, and is weighted by float-adjusted market capitalization. The index undergoes periodic reviews for inclusion, exclusion, and rebalancing, reflecting the dynamics of the global equity market.
Diversification and sector exposure
VT provides broad and diversified exposure to the global stock market, encompassing multiple regions, economic sectors, and company sizes. Sector diversification includes areas such as:
Information technology.
Health care.
Consumer discretionary and consumer staples.
Financials.
Industrials.
Energy.
This composition allows the ETF to broadly reflect the structure of the global economy, reducing reliance on any single country or market.
Structure and costs
Shares of VT are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).
The fund features a low expense ratio, typical of Vanguard’s passively managed ETFs, and does not charge a performance fee. VT has a single share class and trades exclusively under the ticker VT. From an investor perspective, VT’s structure allows for efficient global diversification through a single instrument, reducing operational complexity and transaction costs associated with holding multiple regional ETFs.
The ETF may also make periodic income distributions, derived from dividends paid by companies across developed and emerging markets, making it suitable for long-term investors seeking broad international exposure combined with operational simplicity and cost efficiency.
History and evolution of the ETF
The Vanguard Total World Stock ETF was launched in 2008, amid growing demand for globally diversified investment vehicles accessible through a single exchange-traded product. Since its inception, VT has been widely used by investors seeking to track the aggregate performance of the global equity market through a diversified portfolio that includes both developed and emerging markets.
Between 2020 and 2024, the ETF reflected major movements in global equity markets during a period marked by the COVID-19 pandemic, shifts in global monetary policy, and regional economic fluctuations, maintaining broad adoption among institutional and individual investors.
