ETF Research and Analysis

by Patricia Oey
Suitability
Vanguard Total International Stock VXUS is a solid choice for exposure to large-, mid-, and small-cap international equities and is suitable as a core holding. VXUS provides cap-weighted exposure to 46 developed and emerging   Read more 

Bull Case

This is a cheap one-stop ETF to cover all foreign-equity markets.
Investors can use this ETF, along with Vanguard's other regional ETFs, to customize their exposure to international equities. All of Vanguard's international equity ETFs track a FTSE index.
Many of the fund's largest holdings are high-quality multinational firms that are positioned to capitalize on growth in emerging markets.  Read more 

Bear Case

The eurozone sovereign debt crisis will likely result in higher volatility for this ETF in the near term.
Despite its broad exposure, this ETF has not provided much diversification benefit for U.S. investors over the past few years.
A strengthening U.S. dollar could put a dent in the fund's returns, even if its holdings appreciate.  Read more 

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