The world’s 3 largest ETFs outside the U.S.

Many investors have domestic stock portfolios and hope to supplement them by investing in international stocks.However, a large number of international equity funds still invest part of their assets in U.S. companies

For investors who want pure international equity exposure without being diluted by more US companies, a global former US exchange-traded fund (ETF) may be the best choice. These funds invest in stocks around the world, while pointing out that they should avoid investing in the United States. The following is a list of the world’s three largest non-US stock ETFs calculated by assets under management (AUM).

Key points

  • Investors who wish to invest outside the United States should consider purely international ETFs, also known as global non-US ETFs.
  • The world’s largest ex-US ETF is the Vanguard FTSE All-World ex-US ETF (VEU), with assets under management (AUM) of US$25 billion. The fund mainly invests in the Asia-Pacific and European regions.
  • For investors seeking international exposure, two other notable ETFs are Vanguard Total International Stock ETF (VXUS) and iShares MSCI ACWI ex-US ETF (ACWX), with assets of USD 17.6 billion and USD 4.1 billion, respectively Management scale.

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

Vanguard FTSE All-World ex-US ETF is the largest global non-US fund available as of April 30, 2020, with assets under management of US$35.4 billion. The fund provides a convenient way to make extensive investments in developed and emerging non-US stock markets around the world. It is a passively managed fund that uses index sampling and seeks to track the performance of the FTSE Global (except US) index.

The fund invests in 3,429 different stocks with a median market value of US$28.9 billion. The top 10 holdings are equivalent to 11.7% of the investment portfolio. As for regional exposure, the portfolio allocation is as follows: Europe 40%, Asia Pacific 29%, North America 5.5%, Middle East 0.3%, and emerging markets 23.6%.

The top 10 countries where VEU invests include Japan, China, the United Kingdom, Switzerland, France, Germany, Canada, Australia, Taiwan and South Korea. The fund’s expense ratio is 0.08%. The fund’s distribution rate of return is 3.65%.

Vanguard Total International Stock ETF (VXUS)

Vanguard Total International Stock ETF is another major global non-US fund with an asset under management of 371.5 billion U.S. dollars. The fund aims to track the performance of a benchmark index that measures the investment returns of stocks issued by companies located in developed and emerging markets (excluding the United States). It is a passively managed fund that uses index sampling and seeks to track the performance of FTSE indexes worldwide All market capitalization (except the United States) index.

The portfolio is the ETF with the widest investment range on this list, investing in 7,468 different stocks with a median market value of US$23.9 billion. As for regional exposure, the portfolio allocation is as follows: Europe 39.8%, Asia Pacific 28.9%, North America 6.3%, Latin America 3%, Middle East 0.4%, and emerging markets 23.5%. The top 10 countries where VXUS invests include Japan, China, the United Kingdom, Switzerland, Canada, France, Germany, Australia, Taiwan and South Korea.

The fund’s expense ratio is 0.08%. The fund’s distribution rate of return is 3.63%.

iShares MSCI ACWI ex-US ETF (ACWX)

The larger ETF in the global stock market (except the United States) calculated according to the ETF standard is the iShares MSCI ACWI (except the United States) ETF, with an asset management scale of US$3 billion. The fund aims to provide investors with access to global stock markets, excluding the United States, including developed and emerging market economies. It is mainly suitable for investors looking for long-term growth. The fund tracks the MSCI ACWI ex USA index.

As of May 2020, the portfolio is invested in 1,891 different holdings. The top 10 weighted countries of the fund account for 74% of the portfolio. They are Japan, China, Britain, Switzerland, France, Canada, Germany, Australia, Taiwan and South Korea.

The three most invested sectors together account for 49% of the portfolio. They are finance, technology and industry. ACWX’s distribution rate of return is 3.9%.

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