Difference between revisions of "Compare Vanguard international funds"

From Bogleheads
Jump to navigation Jump to search
m (→‎See also: correct typo in URL)
m (Text replacement - "Nonresident alien with no US tax treaty & Irish ETFs" to "Nonresident alien investors and Ireland domiciled ETFs")
(26 intermediate revisions by 7 users not shown)
Line 1: Line 1:
{{International stocks sidebar}}
+
{{US}}
 
 
These are Vanguard's three broad international index funds.  Any of the four is a good core international holding, and all three are eligible for the [[foreign tax credit]], should have very low capital gains, and are thus suitable for taxable accounts.  You might also add Vanguard Emerging Markets Index Fund if you hold Developed Markets Index (or a non-Vanguard international fund) which has no emerging markets, and Vanguard FTSE All-World Ex-US Small-Cap Fund if you hold one of the funds which has no small-caps.
 
  
 +
These are Vanguard's three broad international index funds.  Any of the three is a good core international holding, and all are eligible for the [[foreign tax credit]], should have very low capital gains, and are thus suitable for taxable accounts.  You might also add Vanguard Emerging Markets Index Fund if you hold Developed Markets Index (or a non-Vanguard international fund) which has no emerging markets.
 +
==Table==
 
{| border="1" cellspacing="1" cellpadding="5"
 
{| border="1" cellspacing="1" cellpadding="5"
 
!
 
!
Line 8: Line 8:
 
!! align="center" style="background:#f0f0f0;" | Vanguard Total International Stock Index Fund  
 
!! align="center" style="background:#f0f0f0;" | Vanguard Total International Stock Index Fund  
 
!! align="center" style="background:#f0f0f0;" | Vanguard Developed Markets Index Fund  
 
!! align="center" style="background:#f0f0f0;" | Vanguard Developed Markets Index Fund  
 +
|-ym
 +
| style="background:#f0f0f0;" |'''Symbol''' || VFWIX || VGTSX || VDVIX
 
|-
 
|-
| style="background:#f0f0f0;" |'''Symbol''' || VFWIX || VGTSX || VDMIX
+
| style="background:#f0f0f0;" |'''ETF ticker''' || VEU || VXUS || VEA
 
|-
 
|-
| style="background:#f0f0f0;" |'''ETF ticker''' || VEU || VXUS || VEA
+
| style="background:#f0f0f0;" |'''Europe'''<ref name="first"> All Holdings as of 9/30/2018.</ref>|| 43.1% || 42.5% || 53.0%
 
|-
 
|-
| style="background:#f0f0f0;" |'''Europe'''<ref name="first"> All Holdings as of 2/28/2011</ref>|| 44.6% || 44.0% || 64.4%
+
| style="background:#f0f0f0;" |'''Pacific'''<ref name="first"/> || 30.0% || 29.9% || 37.6%
 
|-
 
|-
| style="background:#f0f0f0;" |'''Pacific'''<ref name = "first">Refer back to first</ref> || 23.3% || 24.6% || 34.9%
+
| style="background:#f0f0f0;" |'''Emerging Mkts'''<ref name="first"/> || 20.8% || 20.3% || 0.4%
 
|-
 
|-
| style="background:#f0f0f0;" |'''Emerging Mkts'''<ref name = "first">Refer back to first</ref> || 24.9% || 22.7% || 0.7%
+
| style="background:#f0f0f0;" |'''North America'''<ref name="first"/>|| 5.9% (includes Canada) || 6.6% (includes Canada)|| 8.3% (includes Canada)
 
|-
 
|-
| style="background:#f0f0f0;" |'''North America'''<ref name = "first">Refer back to first</ref>|| 7.2% (includes Canada) || 8.7% (includes Canada)|| 0.0% (no Canada included)
+
| style="background:#f0f0f0;" |'''Middle East'''<ref name="first"/>|| 0.4% || 0.4%|| 0.5%
 
|-
 
|-
| style="background:#f0f0f0;" |'''Small Cap'''<ref name = "first">Refer back to first</ref>|| no || yes || no
+
| style="background:#f0f0f0;" |'''Small Cap'''<ref name="first"/>|| no || yes || yes
 
|-
 
|-
| style="background:#f0f0f0;" |'''Inception Date''' || 3/8/2007 || 4/29/1996 || 8/5/2000
+
| style="background:#f0f0f0;" |'''Inception Date''' || 3/8/2007 || 4/29/1996 || 12/19/2013
 
|-
 
|-
 
| style="background:#f0f0f0;" |'''Initial Amount''' || $3,000 || $3,000 || $3,000
 
| style="background:#f0f0f0;" |'''Initial Amount''' || $3,000 || $3,000 || $3,000
 
|-
 
|-
  
| style="background:#f0f0f0;" |'''[[Expense Ratios |Expense Ratio]]''' || 0.35% || 0.22%|| 0.22%
+
| style="background:#f0f0f0;" |'''[[Expense Ratios |Expense Ratio]]''' || 0.23% || 0.17%|| 0.17%
 
|-
 
|-
| style="background:#f0f0f0;" |'''ETF [[Expense Ratios |Expense Ratio]]''' || 0.15% || 0.14%|| 0.09%
+
| style="background:#f0f0f0;" |'''ETF [[Expense Ratios |Expense Ratio]]''' || 0.11% || 0.11%|| 0.07%
 
|-
 
|-
| style="background:#f0f0f0;" |'''2009 [[qualified dividend|Qualified Dividends]]''' || 76.55% || 69.75% || 69.51%
+
| style="background:#f0f0f0;" |'''2017 [[qualified dividend|Qualified Dividends]]''' || 72.24% || 66.60% || 71.28%
 
|-
 
|-
 
| style="background:#f0f0f0;" |'''[[Purchase fee]]''' || 0.00% || 0.00% || 0.00%
 
| style="background:#f0f0f0;" |'''[[Purchase fee]]''' || 0.00% || 0.00% || 0.00%
Line 38: Line 40:
 
| style="background:#f0f0f0;" |'''[[Redemption fee]]''' || 0.00%  || 0.00% || 0.00%  
 
| style="background:#f0f0f0;" |'''[[Redemption fee]]''' || 0.00%  || 0.00% || 0.00%  
 
|-
 
|-
 +
|}
 +
 +
==Picture==
 +
{|
 +
|+ '''Comparison of the different Vanguard International Funds'''
 +
|-
 +
||[[File:VanguardIntlFunds.jpg|600px]]
 +
|-
 +
||Source: [https://www.bogleheads.org/forum/viewtopic.php?p=2307353#p2307353 Differences among Vanguard International funds?], forum discussion, Dec 25, 2014.<br>No guarantees to accuracy.
 
|}
 
|}
  
 
==Changes==
 
==Changes==
 +
===2010===
 +
 
On September 24th, 2010, Vanguard announced a change in the index tracked by the Total International fund to the  
 
On September 24th, 2010, Vanguard announced a change in the index tracked by the Total International fund to the  
[http://www.mscibarra.com/products/indices/international_equity_indices/acwi-imi/MSCI_ACWI_IMI_Factsheet.pdf MSCI All Country World ex USA Investable Market Index], and introduced five additional share classes with lower expense ratios for larger holdings. The index change and introduction of admiral shares was completed in December 2010.<ref name="change">[https://advisors.vanguard.com/VGApp/iip/site/advisor/researchcommentary/research/article?File=IWE_NewsTIShare New ETF share class planned for Vanguard Total International Stock Index Fund], September 24, 2010.</ref>
+
[http://www.mscibarra.com/products/indices/international_equity_indices/acwi-imi/MSCI_ACWI_IMI_Factsheet.pdf MSCI All Country World ex USA Investable Market Index], and introduced five additional share classes with lower expense ratios for larger holdings. The index change and introduction of admiral shares was completed in December 2010.<ref name="change">[https://advisors.vanguard.com/VGApp/iip/site/advisor/researchcommentary/research/article?File=IWE_NewsTIShare New ETF share class planned for Vanguard Total International Stock Index Fund], September 24, 2010.</ref>. On June 3, 2013 the fund switched the tracking index to the [[FTSE Global All Cap ex US Index]].
  
 +
As of 2018, the share class breakdown for the Vanguard Total International Fund is tabulated below.
 +
 
{| border="1" cellspacing="1" cellpadding="5"
 
{| border="1" cellspacing="1" cellpadding="5"
 
|+ '''Vanguard Total International Share Classes'''<ref>[https://institutional.vanguard.com/VGApp/iip/site/institutional/investments/productoverview?fundId=3369 Total International Stock ETF (VXUS)], Vanguard Institutional Investors. Admiral shares are available to personal investors: [https://personal.vanguard.com/us/funds/snapshot?FundId=0569&FundIntExt=INT Total International Stock Admiral (VTIAX)]. Viewed August 11, 2012.</ref>
 
|+ '''Vanguard Total International Share Classes'''<ref>[https://institutional.vanguard.com/VGApp/iip/site/institutional/investments/productoverview?fundId=3369 Total International Stock ETF (VXUS)], Vanguard Institutional Investors. Admiral shares are available to personal investors: [https://personal.vanguard.com/us/funds/snapshot?FundId=0569&FundIntExt=INT Total International Stock Admiral (VTIAX)]. Viewed August 11, 2012.</ref>
Line 52: Line 67:
 
| Investor
 
| Investor
 
| {{0|0,000,00}}$3,000.00
 
| {{0|0,000,00}}$3,000.00
| 0.22%
+
| 0.17%
 
|- align="center"
 
|- align="center"
 
| Admiral
 
| Admiral
 
| {{0|0,000,00}}$10,000.00
 
| {{0|0,000,00}}$10,000.00
| 0.18%
+
| 0.11%
 
|- align="center"
 
|- align="center"
 
| ETF
 
| ETF
 
||See [https://personal.vanguard.com/us/funds/snapshot?FundId=3369&FundIntExt=INT website]
 
||See [https://personal.vanguard.com/us/funds/snapshot?FundId=3369&FundIntExt=INT website]
| 0.18%
+
| 0.11%
|-align="center"
 
| Signal
 
||N/A{{0|0}}
 
| 0.18%
 
 
|-align="center"
 
|-align="center"
 
| Institutional
 
| Institutional
 
||{{0|0,000,0}}$5,000,000.00
 
||{{0|0,000,0}}$5,000,000.00
| 0.13%
+
| 0.09%
 
|- align="center"
 
|- align="center"
 
| Institutional Plus
 
| Institutional Plus
 
||{{0|0,000,0}}$100,000,000.00
 
||{{0|0,000,0}}$100,000,000.00
| 0.10%
+
| 0.07%
 +
|-
 +
|- align="center"
 +
| Institutional Select
 +
||{{0|0,000,0}}$3,000,000,000.00
 +
| 0.045%
 
|-
 
|-
 
|}
 
|}
 
The change in index means that Total International has regional coverage similar to FTSE All-World Ex-US, but with an added mixture of small-capitalization stocks not present in FTSE All-World Ex-US.
 
The change in index means that Total International has regional coverage similar to FTSE All-World Ex-US, but with an added mixture of small-capitalization stocks not present in FTSE All-World Ex-US.
 +
 +
===Small cap additions to funds===
 +
 +
On June 02, 2015, Vanguard announced that four international equity index funds and ETFs would broaden their diversification by adding small-capitalization stocks to their investment portfolios. The funds included the Vanguard Emerging Markets Stock Index Fund (VWO and VEMAX), the Vanguard Developed Markets Index Fund (VEA and VTMGX), the Vanguard European Stock Index Fund (VGK and VEUSX), and the Vanguard Pacific Stock Index Fund (VPL and VPADX). According to Vanguard the transition to more broadly diversified FTSE all-capitalization benchmarks, completed in the fourth quarter of 2015, increased the allocation to small-cap stocks to approximately 9% to 11% of each fund and  brought the funds closer to global market-cap weightings.<ref>{{Cite web|url=https://personal.vanguard.com/us/insights/article/fund-announcement-Z-implementation-122015|title=Developed Markets Index Fund moves to transition index|publisher=Vanguard|date=21 December 2015|accessdate=2 January 2016}}</ref>
 +
<ref>{{Cite web|url=https://personal.vanguard.com/us/insights/article/fund-announcement-062015|title=Vanguard announces 4 international index funds to broaden diversification|publisher=Vanguard|date=June 2015|accessdate=2 January 2016}}</ref>
  
 
==See also==
 
==See also==
Line 81: Line 102:
 
*[[Vanguard Total International Stock Index Fund tax distributions‎]]
 
*[[Vanguard Total International Stock Index Fund tax distributions‎]]
 
*[[Vanguard Developed Markets Index Fund (VDMIX) tax distributions]]
 
*[[Vanguard Developed Markets Index Fund (VDMIX) tax distributions]]
*[[Nonresident alien with no US tax treaty & Irish ETFs#Estimating Level I tax withholding paid by US-domiciled funds|Estimating Level I tax withholding paid by US-domiciled funds]]
+
*[[Nonresident alien investors and Ireland domiciled ETFs#Estimating Level 1 dividend tax withholding paid by US domiciled funds|Estimating Level 1 dividend tax withholding paid by US domiciled funds]]
* [https://www.bogleheads.org/forum/viewtopic.php?t=155918 forum thread: VEU vs VEA vs VXUS splitting hairs...which is better]
+
* {{forum post|t=155918|title=VEU vs VEA vs VXUS splitting hairs...which is better}}
  
 
==References==
 
==References==
 
{{Reflist|30em}}
 
{{Reflist|30em}}
  
 
+
{{Non-US stocks}}
 
 
 
[[Category:Asset allocation]]
 
[[Category:Asset allocation]]
 
 
[[Category:Vanguard]]
 
[[Category:Vanguard]]
[[Category:International stocks]]
+
[[Category:Non-US stocks]]

Revision as of 07:30, 28 August 2020

Flag of the United States.svg.png This article contains details specific to United States (US) investors. It may not apply to non-US investors.

These are Vanguard's three broad international index funds. Any of the three is a good core international holding, and all are eligible for the foreign tax credit, should have very low capital gains, and are thus suitable for taxable accounts. You might also add Vanguard Emerging Markets Index Fund if you hold Developed Markets Index (or a non-Vanguard international fund) which has no emerging markets.

Table

Vanguard FTSE All-World ex-US Index Fund Vanguard Total International Stock Index Fund Vanguard Developed Markets Index Fund
Symbol VFWIX VGTSX VDVIX
ETF ticker VEU VXUS VEA
Europe[1] 43.1% 42.5% 53.0%
Pacific[1] 30.0% 29.9% 37.6%
Emerging Mkts[1] 20.8% 20.3% 0.4%
North America[1] 5.9% (includes Canada) 6.6% (includes Canada) 8.3% (includes Canada)
Middle East[1] 0.4% 0.4% 0.5%
Small Cap[1] no yes yes
Inception Date 3/8/2007 4/29/1996 12/19/2013
Initial Amount $3,000 $3,000 $3,000
Expense Ratio 0.23% 0.17% 0.17%
ETF Expense Ratio 0.11% 0.11% 0.07%
2017 Qualified Dividends 72.24% 66.60% 71.28%
Purchase fee 0.00% 0.00% 0.00%
Redemption fee 0.00% 0.00% 0.00%

Picture

Comparison of the different Vanguard International Funds
VanguardIntlFunds.jpg
Source: Differences among Vanguard International funds?, forum discussion, Dec 25, 2014.
No guarantees to accuracy.

Changes

2010

On September 24th, 2010, Vanguard announced a change in the index tracked by the Total International fund to the MSCI All Country World ex USA Investable Market Index, and introduced five additional share classes with lower expense ratios for larger holdings. The index change and introduction of admiral shares was completed in December 2010.[2]. On June 3, 2013 the fund switched the tracking index to the FTSE Global All Cap ex US Index.

As of 2018, the share class breakdown for the Vanguard Total International Fund is tabulated below.

Vanguard Total International Share Classes[3]
Share Class Minimum Balance Expense Ratio
Investor 0,000,00$3,000.00 0.17%
Admiral 0,000,00$10,000.00 0.11%
ETF See website 0.11%
Institutional 0,000,0$5,000,000.00 0.09%
Institutional Plus 0,000,0$100,000,000.00 0.07%
Institutional Select 0,000,0$3,000,000,000.00 0.045%

The change in index means that Total International has regional coverage similar to FTSE All-World Ex-US, but with an added mixture of small-capitalization stocks not present in FTSE All-World Ex-US.

Small cap additions to funds

On June 02, 2015, Vanguard announced that four international equity index funds and ETFs would broaden their diversification by adding small-capitalization stocks to their investment portfolios. The funds included the Vanguard Emerging Markets Stock Index Fund (VWO and VEMAX), the Vanguard Developed Markets Index Fund (VEA and VTMGX), the Vanguard European Stock Index Fund (VGK and VEUSX), and the Vanguard Pacific Stock Index Fund (VPL and VPADX). According to Vanguard the transition to more broadly diversified FTSE all-capitalization benchmarks, completed in the fourth quarter of 2015, increased the allocation to small-cap stocks to approximately 9% to 11% of each fund and brought the funds closer to global market-cap weightings.[4] [5]

See also

References