The Vanguard Total International Stock ETF (VXUS) is gaining attention for its dual benefit of passive income through dividends and potential for capital appreciation. With a current yield of nearly 2.8%, VXUS outperforms several popular dividend ETFs, making it an appealing option for investors seeking reliable income alongside international diversification. The ETF holds approximately 8,800 stocks across developed and emerging markets, including significant allocations to Japan, the U.K., and China, which can provide stability and growth opportunities.
Investing in VXUS allows portfolio managers to mitigate the risks associated with individual international stocks, such as geopolitical tensions and currency fluctuations. By tracking the FTSE Global All Cap ex US Index, VXUS covers 98% of the non-U.S. market, offering exposure to sectors like financials and industrials that are less represented in the U.S. market.
For market professionals, VXUS presents a compelling case for inclusion in portfolios, particularly for those looking to balance domestic equity exposure with international growth and income generation.
Source: fool.com