The bottom line on the Vanguard Total International Stock ETF
This Vanguard ETF remains a top choice for passive investors seeking cost-effective and broad international diversification. With exposure to over 8,600 stocks for an expense ratio of just 0.05%, it's tough to beat.
This ETF doesn't take any active bets, instead buying the entire haystack of investable non-U.S. markets at market-cap weights. It provides coverage of virtually all developed and emerging market countries, so there’s no need to worry about which one will outperform.
For most investors, this ETF works best when paired with a broad U.S. market index ETF. The exact weighting depends on your preferences, but a simple 50/50 split between U.S. and international equities can serve as a reasonable starting point for global diversification.
However, it may be less suitable for investors who are bullish on U.S. equities and prefer to focus solely on domestic markets. Similarly, if you want to screen international stocks for specific traits -- such as a particular investment style (value, growth, or dividends), or size (small- and mid-caps) -- you might find this Vanguard ETF too broad.