VSS - VSS: Super Diversified International Small-Cap Exposure That Beats The Rest
2024-03-27 16:58:35 ET
Summary
- U.S. small-cap stocks have underperformed in recent years, but investing in small-caps outside the U.S. may offer diversification and catch-up momentum potential.
- Vanguard FTSE All-World ex-US Small-Cap Index Fund ETF Shares allows investors to diversify their portfolios with a low expense ratio and a highly diversified portfolio.
- The VSS ETF has outperformed similar international small-cap ETFs and offers broad diversification, low expense ratio, and attractive PE ratios, but comes with geopolitical and currency risks.
U.S. small-cap stocks have been a bit of a disaster over the last two years. When we look at the Russell 2000 small-cap index (RTY), we can see it hasn't made new highs since 2021 as large-caps in the U.S. power higher. A large part of U.S. weakness in small-caps has to do with leverage and these smaller companies needing to roll over their debt into higher for longer rates. But what about investing in small-caps outside the US? That's where the Vanguard FTSE All-World ex-US Small-Cap Index Fund ETF Shares ( VSS ) comes into play....
VSS: Super Diversified International Small-Cap Exposure That Beats The Rest