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<h2>Key Points</h2><ul><li>Most investors have focused on the S&amp;P 500. It's time to consider adding international stocks to the mix.</li><li>Better growth opportunities, better value, and a lack of tech concentration makes overseas equities attractive.</li><li>The Vanguard Total World Stock ETF maintains an allocation of 60% U.S. stocks and 40% international stocks.</li><li>10 stocks we like better than Vanguard International Equity Index Funds - Vanguard Total World Stock ETF ›</li></ul><p>Most investors are familiar with the <strong>Vanguard S&amp;P 500 ETF</strong> <span class="ticker">(NYSEMKT: VOO)</span> and the <strong>Vanguard Total Stock Market ETF</strong> <span class="ticker">(NYSEMKT: VTI)</span>. They're two of the most popular and cheapest ways to access the U.S. equity market.</p><p>What they may not know is that there's an equally attractive fund that invests in the entire global equity market. The <strong>Vanguard Total World Stock ETF</strong> <span class="ticker">(NYSEMKT: VT)</span> holds roughly 10,000 stocks across roughly 40 countries. For worldwide stock market diversification, it may be just about the only ETF you need.</p><p><em><strong>Will AI create the world's first trillionaire?</strong> Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »</em></p><img alt="Market indices on a digital screen." src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MzM4Ni9nZXR0eWltYWdlcy0xMTk2MDg2OTg2LmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MzM4Ni9nZXR0eWltYWdlcy0xMTk2MDg2OTg2LmpwZyZ3PTcwMA"/>
<p>Image source: Getty Images.</p>
<h2>Key takeaways</h2><ul>
<li>The Vanguard Total World Stock ETF has a roughly 60/40 mix of U.S. and international equities.</li>
<li>Its 0.06% expense ratio makes it one of the cheapest ways to access the global stock market.</li>
<li>International stocks have significantly outperformed the S&amp;P 500 over the past year and a half, demonstrating the clear value of diversification in a portfolio.</li>
<li>A slowing U.S. economy combined with much more attractive value overseas makes VT's balanced allocation a better bet than the <strong>S&amp;P 500</strong>.</li>
</ul><h2>Why international diversification is still important</h2><p>For years, the S&amp;P 500 has been the go-to index for diversified equity exposure. The Vanguard Total Stock Market ETF is the fourth largest ETF in the world, but the knock on it has been that small-cap exposure has been a performance drag. The Vanguard Total World Stock ETF has been dinged for its international exposure.</p><p>But the exposure is turning into a tailwind. The Total World Stock ETF has beaten the S&amp;P 500 by nearly 3% over the past year due to its international coverage. Concerns about the U.S. economy slowing, the impact of geopolitical risk, and relative overvaluations has shifted attention to the overseas markets for opportunity.</p><p>The real advantage of international diversification is that many economies have different sector and cyclical exposures. Tech isn't nearly the dominant industry elsewhere as it is in the United States. That extra balance, which often includes heavier allocations to financials and industrials, can help mitigate risk when tech isn't leading the market higher.</p><p>Some of that value is finally being unlocked now. Given how long international stocks have lagged those from the United States, a sustained reversal of that pattern could be ahead.</p><h2>VT vs. VOO: U.S. equities vs. world equities</h2>
<section><table>
<thead>
<tr>
<th scope="col">Metric</th>
<th scope="col">VT</th>
<th scope="col">VOO</th>
</tr>
</thead>
<tbody>
<tr>
<td>Expense ratio</td>
<td>0.06%</td>
<td>0.03%</td>
</tr>
<tr>
<td>Assets under management (AUM)</td>
<td>$62.4 billion</td>
<td>$817.5 billion</td>
</tr>
<tr>
<td>Number of holdings</td>
<td>10,060</td>
<td>504</td>
</tr>
<tr>
<td>1-year return</td>
<td>21.5%</td>
<td>17.7%</td>
</tr>
<tr>
<td>10-year average annual return</td>
<td>11.5%</td>
<td>14.2%</td>
</tr>
<tr>
<td>Dividend yield</td>
<td>1.7%</td>
<td>1.2%</td>
</tr>
</tbody>
</table></section>
<p>Data source: VT website, VOO website.</p><p>The Vanguard Total World Stock ETF offers a lot of the same benefits of the Vanguard S&amp;P 500 ETF and Vanguard Total Stock Market ETF. It offers incredible diversification and a very low expense ratio of 0.06%, typical of other Vanguard ETFs. And it offers exposure to companies and markets that would be far too costly for most individuals to access.</p><p>VT is a great core holding for any investor seeking simplicity from a single ETF. Expanding a portfolio beyond just the S&amp;P 500 is likely to become more important to performance in the coming years. This is one of the best ways to get it in an all-in-one portfolio.</p><h2>Should you buy stock in Vanguard International Equity Index Funds - Vanguard Total World Stock ETF right now?</h2>
<p>Before you buy stock in Vanguard International Equity Index Funds - Vanguard Total World Stock ETF, consider this:</p>
<p>The <em>Motley Fool Stock Advisor</em> analyst team just identified what they believe are the <strong>10 best stocks</strong> for investors to buy now… and Vanguard International Equity Index Funds - Vanguard Total World Stock ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.</p>
<p>Consider when <strong>Netflix</strong> made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, <strong>you’d have $499,277</strong>!* Or when <strong>Nvidia</strong> made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, <strong>you’d have $1,225,371</strong>!*</p>
<p>Now, it’s worth noting <em>Stock Advisor’s</em> total average return is 972<span>% — a market-crushing outperformance compared to 198% for the S&amp;P 500. <strong><span>Don't miss the latest top 10 list, available with <em>Stock Advisor</em>, and join an investing community built by individual investors for individual investors.</span></strong></span></p>
<p>See the 10 stocks »</p>
<p style="color: #767676; text-align: left"><em>*Stock Advisor returns as of April 22, 2026. </em></p><p><em>David Dierking has positions in Vanguard Total Stock Market ETF. The Motley Fool has positions in and recommends Vanguard S&amp;P 500 ETF and Vanguard Total Stock Market ETF. The Motley Fool has a disclosure policy.</em></p>
<p>The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.</p>
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<p>The Vanguard Total World Stock ETF (VT) offers a diversified investment in global equities, with a 60% allocation to U.S. stocks and 40% to international stocks. It has a low expense ratio of 0.06% and has outperformed the S&P 500 by nearly 3% over the past year. As international stocks show better growth potential and value, VT is positioned as a strong alternative for investors looking to diversify beyond U.S. markets. Analysts suggest considering other top stocks as well, as VT was not included in a recent list of recommended investments.</p>

nasdaq

VG Ttl World Stock

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VG S&P 500

VG Total Stock

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NVIDIA Corporation

This Vanguard ETF Is the Closest Thing to "Owning the World" for Under $200