Meet the Low-Cost Vanguard ETF With Taiwan Semiconductor, Samsung Electronics, SK Hynix, and ASML as Its 4 Largest Holdings
Key PointsU.S. megacap growth stocks such as Nvidia, Apple, Alphabet, Microsoft, and Amazon have altered the composition of major indexes like the S&P 500.
The Vanguard Total International Stock ETF (VXUS) is an investment vehicle that offers exposure to leading international companies, such as Taiwan Semiconductor Manufacturing (TSM), Samsung Electronics (SSNLF), SK Hynix (SKHY), and ASML (ASML). These four companies represent 8.7% of the ETF's holdings, but each represents less than 1% of the fund due to the lack of market caps over $1 trillion among non-U.S. stocks.
The ETF holds a total of 8,790 international stocks from various countries, with Japan, Taiwan, the UK, Canada, China, South Korea, France, Switzerland, Germany, India, Australia, and others making up the majority of its portfolio. While U.S. stocks have generally outperformed international stocks since 2008, international stocks offer a more diversified portfolio and a lower expense ratio of 0.05% compared to the Vanguard S&P 500 ETF's 0.03%.
The lower valuation and higher yield of the Total International Stock ETF may make it an appealing choice for value and income investors, as well as those who wish to limit their exposure to U.S. stocks already held or through other ETFs.
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