The 3 Largest Global Ex-U.S. ETFs

Many traders have home inventory portfolios and want to complement them with publicity to worldwide equities. Nonetheless, numerous worldwide fairness funds nonetheless make investments a portion of their property in corporations primarily based within the U.S. 

For traders who need pure worldwide fairness publicity with out it being diluted by extra American corporations, a worldwide ex-U.S. exchange-traded fund (ETF) could also be the best choice. These funds spend money on shares everywhere in the world whereas making some extent to keep away from investing within the U.S. The next is an inventory of three of the most important international ex-U.S. fairness ETFs by property beneath administration (AUM).

Vanguard Complete Worldwide Inventory ETF (VXUS)

The Vanguard Complete Worldwide Inventory ETF is the most important main international ex-U.S. fund with $49 billion in AUM as of Q2 2022. The fund seeks to trace the efficiency of a benchmark index that measures the funding return of shares issued by corporations positioned in developed and rising markets, excluding the U.S. It’s a passively managed fund that makes use of index sampling and seeks to trace the efficiency of the FTSE International All Cap ex-U.S. Index.

The portfolio is essentially the most broadly invested ETF on this record, investing in 7.826 totally different international equities, with a weighted-average market capitalization of $80.4 billion. As for regional publicity, the portfolio is allotted as follows: Asia-Pacific (46%); Europe (40%); N. America (8%); MidEast & Africa (4%); and Latin America (3%). The highest 10 international locations the VXUS is invested in embrace Japan, the U.Okay., Hong Kong, Canada, France, Switzerland, Australia, Germany, Taiwan, and India. 

The fund has an expense ratio of 0.07%. The fund’s distribution yield is 3.45%.

Vanguard FTSE All-World ex-US ETF (VEU)

The Vanguard FTSE All-World ex-US ETF was as soon as the most important international ex-U.S. fund obtainable, however has slipped to second as of Q2 2022, with $33.1 billion in AUM. The fund presents a handy option to get broad publicity throughout developed and rising non-U.S. fairness markets around the globe. It’s a passively managed fund that makes use of index sampling and seeks to trace the efficiency of the FTSE All-World ex-U.S. Index.

The fund invests in 3,620 totally different equities and has a weighted-average market capitalization of $89 billion. Its high 10 holdings equal 9.5% of the portfolio. As for regional publicity, the portfolio is allotted as follows: Asia-Pacific (46%); Europe (40%); N. America (7%); MidEast & Africa (4%); Latin America (3%).

The highest 10 international locations the VEU is invested in embrace Japan, the U.Okay., Hong Kong, Canada, France, Switzerland, Australia, Germany, Taiwan, and India. The fund has an expense ratio of 0.07%. The distribution yield on the fund is 3.41%.

iShares MSCI ACWI ex-U.S. ETF (ACWX)

A bigger, however nonetheless giant by ETF requirements, complete market international fairness ex-U.S. ETF is the iShares MSCI ACWI ex-U.S. ETF with $4.2 billion AUM as of Q2 2022. This fund seeks to supply traders entry to the worldwide fairness markets, excluding the US, together with developed and rising market economies. It’s primarily appropriate for an investor in search of long-term development. The fund tracks the MSCI ACWI ex USA Index.

The portfolio is invested in 1,880 totally different holdings with a weighted-average market cap of $93.3 billion. The fund’s top-10 holdings comprise 11% of the portfolio. High international locations represented within the ETF are Japan, the U.Okay., Hong Kong, Canada, France, Switzerland, Germany, Australia, Taiwan, and India. 

The three most closely invested sectors complete 49% of the portfolio. They’re financials, expertise, and industrials. The distribution yield for the ACWX is 3.9%.