Vanguard International ETF Face-Off: VXUS vs. VWO
VXUS delivered 20.1% returns over one year while maintaining lower costs, but VWO's emerging-market focus offers distinct growth potential for risk-tolerant investors.
Overview
The Vanguard Total International Stock ETF (NASDAQ:VXUS) and Vanguard FTSE Emerging Markets ETF (NYSEMKT:VWO) both offer low-cost international diversification, but they differ significantly in regional focus, volatility profiles, and historical performance.
International investing provides a hedge against U.S. market concentration, but the specific region matters. While the Vanguard Total International Stock ETF acts as a broad basket for all non-U.S. markets, the Vanguard FTSE Emerging Markets ETF isolates faster-growing developing nations, creating a distinct risk and return profile for long-term investors.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.