TSM - VXUS: Why I'm Buying This International Stock ETF With A 3% Yield
2024-06-30 20:37:06 ET
Summary
- Vanguard Total International Stock Index Fund ETF focuses on global companies with dividends.
- Reducing exposure to U.S. stocks and increasing exposure to global stocks could make sense right now.
- Top holdings include Taiwan Semiconductor, Novo Nordisk, and ASML Holding NV, each representing less than 2% of the portfolio.
- VXUS offers potential upside from interest rate cuts, dividend stock attractiveness, undervaluation compared to S&P 500, and strong recent performance.
Vanguard Total International Stock Index Fund ETF ( VXUS ) focuses on owning stock in global companies, many of which pay dividends. This ETF has nearly $432 billion in assets under management and offers an extremely low expense ratio of 0.08%. The TTM dividend yield is just over 3%. Since its inception in January 2011, this fund has returned about 4.56% annually, which is right in line with industry benchmarks. The one-year and five-year performance numbers are much better with one-year total returns of about 17% and five-year returns averaging 7.17% annually. Stock valuations outside of the United States appear to offer investors a more compelling opportunity at current levels, so let's take a closer look:...
VXUS: Why I'm Buying This International Stock ETF With A 3% Yield