---
title: "This Low-Cost ETF Holds Almost 8,800 Stocks Across Both Developed and Emerging Markets. Here's Why It's a Compelling Long-Term Core Holding"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/285543178.md"
description: "The Vanguard Total International Stock ETF (VXUS) offers investors exposure to nearly 8,800 international stocks across developed and emerging markets. With a low expense ratio of 0.05%, it provides a cost-effective way to diversify portfolios, especially for those heavily invested in U.S. companies. Currently, international stocks in this ETF trade at a discount compared to U.S. stocks, making it an attractive option for long-term investment. Investors have allocated nearly $600 billion to this fund, highlighting its appeal as a core holding."
datetime: "2026-05-07T11:40:28.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/285543178.md)
  - [en](https://longbridge.com/en/news/285543178.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/285543178.md)
---

# This Low-Cost ETF Holds Almost 8,800 Stocks Across Both Developed and Emerging Markets. Here's Why It's a Compelling Long-Term Core Holding

## Key Points

-   The Vanguard Total International Stock ETF is one of the most diverse ways to get international exposure in your portfolio.
-   The ETF has a low 0.05% expense ratio and owns thousands of stocks.
-   It has excellent total return potential and helps diversify a portfolio of U.S. equities.
-   10 stocks we like better than Vanguard Total International Stock ETF ›

It can be a great idea for investors to add international exposure to their stock portfolios -- especially if they're currently invested in mostly U.S.-based companies. And a great way to do it is with a low-cost index fund like the **Vanguard Total International Stock ETF** (NASDAQ: VXUS).

## What does the Vanguard Total International Stock ETF invest in?

As the name suggests, this is an index fund that invests in _international_ stocks. As a quick note, a _global_ ETF invests in stocks worldwide, including U.S. stocks. International stock ETFs specifically exclude the U.S.

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Image source: Getty Images.

The Vanguard Total International Stock ETF tracks a broad index. It owns nearly 8,800 different stocks. Companies of all sizes are represented, as are both developed and emerging markets. It is a weighted ETF, meaning larger companies carry more weight, but it certainly isn't top-heavy. Only three companies make up more than 1% of the fund's assets.

Also, don't assume that because it's an international ETF that it's filled with companies you've never heard of. Top holdings include tech heavyweights **Taiwan Semi** (NYSE: TSM) and **Samsung**, and you'll also find **AstraZeneca** (NYSE: AZN), **Alibaba** (NYSE: BABA), and other household names among the largest holdings.

Like most Vanguard ETFs, the Vanguard Total International Stock ETF is an inexpensive way to invest. It has a 0.05% expense ratio, which means that for every $10,000 in assets, your annual investment costs will be just $5. (Note: This isn't a fee you have to pay. It will simply be reflected in the fund's performance.)

## A smart time to buy?

There are two big reasons to consider the Vanguard Total International Stock ETF right now. The first is to diversify your portfolio, as international stocks can protect against currency fluctuations, U.S.-specific economic headwinds, and more.

The second reason is that international stocks, as a group, trade at a significant discount to their U.S. counterparts. For example, the average stock in this ETF trades at about 17 times earnings, compared to an average price-to-earnings multiple of more than 25 for the U.S.-based **Vanguard Total Stock Market ETF** (NYSEMKT: VTI).

In a nutshell, the Vanguard Total International Stock ETF provides diversification at an attractive price. If you don't yet have enough non-U.S. exposure, it could be worth a closer look. Investors have nearly $600 billion allocated to this index fund, and there's a good reason why.

## Should you buy stock in Vanguard Total International Stock ETF right now?

Before you buy stock in Vanguard Total International Stock ETF, consider this:

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_Matt Frankel, CFP has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AstraZeneca Plc and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy._

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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