VXUS

The Vanguard Total International Stock Index Fund ETF Shares (VXUS) is an exchange-traded fund that seeks to track the performance of a broad index of stocks from developed and emerging markets outside the United States. The ETF is managed by Vanguard and trades under the ticker VXUS on NYSE Arca.

Classified as an international equity ETF with a global focus, VXUS aims to reflect, before fees and expenses, the aggregated performance of the stocks included in its benchmark index, providing exposure to large-, mid-, and small-cap companies outside the U.S. 

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.

VXUS’s benchmark is based on the FTSE Global All Cap ex US Index, which includes equities from both developed and emerging markets, weighted by float-adjusted market capitalization with periodic rebalancing to reflect changes in the global equity landscape.

Diversification and sector exposure

VXUS provides broad exposure to the international equity market, including companies across sectors such as:

• Information technology.

• Health care.

• Consumer discretionary.

• Consumer staples.

• Financials.

• Industrials.

• Energy.

Structure and costs

Shares of VXUS 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 and competitive expense ratio, typical of Vanguard’s passive ETFs, and does not charge a performance fee. VXUS may make periodic income distributions, derived from dividends paid by the underlying stocks. The ETF has a single share class and trades exclusively under the ticker VXUS.

History and evolution of the ETF

The Vanguard Total International Stock Index Fund ETF Shares was launched in 2011, amid growing investor demand for passive instruments offering broad exposure to equities outside the United States.

Since its inception, VXUS has been used by institutional and individual investors as an efficient way to achieve international diversification, complementing U.S.-focused equity allocations.

Between 2020 and 2024, the ETF reflected significant movements in international equity markets, including volatility in emerging markets, shifts in global monetary policies, and recovery cycles, while maintaining high liquidity and broad adoption as a global diversification tool.