Compare Vanguard international funds
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.
Feature comparison table
Vanguard FTSE All-World ex-US Index Fund | Vanguard Total International Stock Index Fund | Vanguard Developed Markets Index Fund | |
---|---|---|---|
Symbol | VFWAX | VTIAX | VTMGX |
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 | 0.11% | 0.11% | 0.07% |
ETF Expense Ratio | 0.07% | 0.07% | 0.05% |
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% |
Diagram representation
Source: Bogleheads forum post: "Differences among Vanguard International funds?". 25 December, 2014. (No guarantees of accuracy.) |
Changes
2010 changes
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.
Share Class | Minimum Balance | Expense Ratio |
---|---|---|
Investor | $3,000.00 | 0.17% |
Admiral | $10,000.00 | 0.11% |
ETF | Not applicable | 0.11% |
Institutional | $5,000,000.00 | 0.09% |
Institutional Plus | $100,000,000.00 | 0.07% |
Institutional Select | $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
- Vanguard FTSE All-World ex-US Index Fund tax distributions
- Vanguard Total International Stock Index Fund tax distributions
- Vanguard Developed Markets Index Fund (VDMIX) tax distributions
- Estimating Level 1 dividend tax withholding paid by US domiciled funds
- Bogleheads forum topic: "VEU vs VEA vs VXUS splitting hairs...which is better"
References
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 All Holdings as of September 30, 2018.
- ↑ New ETF share class planned for Vanguard Total International Stock Index Fund, September 24, 2010.
- ↑ Total International Stock ETF (VXUS), Vanguard Institutional Investors. Admiral shares are available to personal investors: Total International Stock Admiral (VTIAX). Viewed August 11, 2012.
- ↑ "Developed Markets Index Fund moves to transition index". Vanguard. 21 December 2015. Retrieved 2 January 2016.
- ↑ "Vanguard announces 4 international index funds to broaden diversification". Vanguard. June 2015. Retrieved 2 January 2016.