The Vanguard Total World Stock ETF (VT -0.65%) is an extremely well-diversified exchange-traded fund (ETF). By investing in this ETF, you essentially become part owner of companies that span the global economy, including U.S. and foreign companies.
NYSEMKT: VT
Key Data Points
The fund comprises companies in both well-developed and emerging markets, providing favorable exposure to a notable range of assets at a relatively modest cost to investors. If you're interested in investing in the Vanguard Total World Stock ETF, here's what you need to know about the fund and investing in ETFs.
Exchange-Traded Fund (ETF)
What is Vanguard Total World Stock ETF?
The Vanguard Total World Stock ETF is managed by The Vanguard Group. This firm is the world's largest provider of mutual funds and one of the top providers of ETFs, outpaced in the latter arena only by BlackRock (BLK +0.18%).
Many ETFs track the performance of a specific index. The Vanguard Total World Stock ETF tracks the FTSE Global All Cap Index, which tracks the performance of stocks for companies around the world. This includes a collection of small-cap, mid-cap, and large-cap stocks. The index covers about 98% of global investable market capitalization and includes approximately 9,800 holdings in more than 47 countries.
The fund is passively managed, as opposed to some actively managed ETFs. A passively managed ETF like the Vanguard Total World Stock ETF aims to match the performance of its benchmark index, while the intent of an actively managed fund is to outpace the performance of the index it follows.
How to buy Vanguard Total World Stock ETF
If you want to invest in the Vanguard Total World Stock ETF, it's a simple process. You can buy shares through Vanguard or purchase shares of the ETF directly through your brokerage account by following these steps:
- Open your brokerage account: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Holdings of Vanguard Total World Stock ETF
As of mid-2025, the Vanguard Total World Stock ETF contains 9,787 stocks. At last count, the ETF comprises approximately $63.6 billion in assets under management (AUM), which is the market value of the investments contained in the fund. This figure will change with time, both as new shares are created and as the value of the shares themselves fluctuate.
The Vanguard Total World Stock ETF's top 10 holdings as of July 3, 2025, are as follows:
- Microsoft (MSFT -3.27%): 3.71%
- Nvidia (NVDA -2.08%): 3.43%
- Apple (AAPL +0.56%): 3.21%
- Amazon (AMZN -2.65%): 2.09%
- Meta Platforms (META -11.22%): 1.54%
- Broadcom (AVGO -2.68%): 1.21%
- Alphabet, Class A shares (GOOGL +3.10%): 1.10%
- Tesla (TSLA -4.19%): 1.04%
- Alphabet, Class C shares (GOOG +3.17%): 0.91%
- Berkshire Hathaway (NYSE:BRK.B): 0.86%
These top 10 holdings comprise 19.1% of the Vanguard Total World Stock ETF's total net assets. Given the diverse range of companies featured in this ETF, the fund also provides exposure to numerous stock market sectors. Its sector exposure as of mid-2025 is as follows:
- Technology: 26.54%
- Financials: 15.92%
- Industrials: 14.21%
- Consumer discretionary: 14.09%
- Healthcare: 8.81%
- Consumer staples: 5.05%
- Energy: 3.75%
- Basic materials: 3.20%
- Utilities: 3.00%
- Telecommunications: 2.72%
- Real estate: 2.69%
Broken down by region, the Vanguard Total World Stock ETF's holdings are distributed as follows:
- North America: 65.17%
- Europe: 15.16%
- Emerging markets: 9.90%
- Pacific: 9.55%
- Middle East: 0.22%
Should I invest in Vanguard Total World Stock ETF?
The Vanguard Total World Stock ETF might be a good fit for your portfolio for numerous reasons. The ETF is a relatively low-cost, passive investment option that can provide instant diversification to your portfolio, as other ETFs do.
If you're looking for an investment that can deliver returns that track the FTSE Global All Cap Index and provide exposure to a global collection of stocks, including some of the world's most well-known brands, this ETF may be a wise addition to your portfolio.
On the other hand, if you want an ETF with less concentration in the fund's top holdings or one that exceeds rather than matches the performance of the FTSE Global All Cap Index, you may want to consider alternative options. It's important to understand that any investment, including an ETF, presents a level of risk. No investment is guaranteed.
Does Vanguard Total World Stock ETF pay a dividend?
The Vanguard Total World Stock ETF pays a regular quarterly dividend. As of mid-2024, that dividend yield is approximately 1.89%. Its dividend has steadily risen through the years. On an annual basis, its dividend per share is $2.21. The fund features a payout ratio of about 37%.
What is Vanguard Total World Stock ETF's expense ratio?
Vanguard funds are known for their low expense ratios. The Vanguard Total World Stock ETF features an expense ratio of 0.07%, significantly lower than the average for global funds, which is around 1%. The lower the expense ratio, the more you keep from the returns of the ETF you invest in.
Expense Ratio
For instance, the management fees that Vanguard would charge someone for a $5,000 investment in the Vanguard Total World Stock ETF would amount to approximately $3.50 per year.
Related investing topics
Historical performance of Vanguard Total World Stock ETF
The Vanguard Total World Stock ETF's goal is to closely track the average return of the FTSE Global All Cap Index. It has delivered on that goal through the years, as outlined in the table below by total cumulative return in terms of market price and net asset value:
Return period | 1-Year | 3-Year | 5-Year | 10-Year |
|---|---|---|---|---|
VT market price | 16.34% | 17.03% | 13.69% | 10.01% |
VT (NAV) | 16.42% | 17.09% | 13.65% | 10.02% |
Benchmark | 16.33% | 17.19% | 13.75% | 10.08% |
The bottom line on Vanguard Total World Stock ETF
The Vanguard Total World Stock ETF has delivered on its promise to investors through the years, even as its performance has trailed the returns of other indexes, like the S&P 500. This ETF may be a wise choice for investors wanting to diversify their portfolio with premier companies around the globe and lesser-known businesses, all while enjoying a low expense ratio and steady dividend income.
FAQ
About the Author
