Vanguard's Fund Is Destroying The S&P With Blistering 38.4% Run

"The Core Role: Diversification Beyond U.S. Borders VXUS complements U.S.-focused portfolios by offering exposure to developed and emerging markets across Europe, Asia, and Latin America. The fund's scale matters: with $606.2 billion in net assets, it offers deep liquidity for investors entering and exiting positions. Its 0.05% expense ratio means costs won't erode returns over decades of compounding, making it practical for long-term buy-and-hold strategies."

"VXUS returned 38.4% over the past year, significantly outpacing the 15.0% gain from Vanguard Total Stock Market ETF (NYSEARCA:VTI). This reversal suggests international markets may finally be catching up after a prolonged period of underperformance, driven by improving valuations in European and Asian markets. The five-year view requires more patience. VXUS gained 51.8% compared to VTI's 66.4% climb over that period. The gap reflects structural advantages U.S. markets enjoyed from technology sector dominance and stronger economic growth, but also highlight"

VXUS provides comprehensive exposure to non-U.S. equities across developed and emerging markets, including Europe, Asia, Latin America, and Canada. The fund holds $606.2 billion in net assets and offers high liquidity for investors entering and exiting positions. A 0.05% expense ratio keeps costs negligible over long-term compounding, supporting buy-and-hold strategies. Geographic diversification can offset U.S. market stalls and currency shifts by including banks, industrials, manufacturers, and emerging growth companies. Recent one-year performance outpaced U.S. equities, while five-year returns lagged due to U.S. technology dominance and stronger domestic economic growth.

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