VXUS follows the FTSE Global All Cap ex US Index, which allocates just over 17 percent of its weight to emerging markets. Europe is the ETF’s largest regional exposure at over 46% while developed Asia-Pacific accounts for 30% of the lineup in VXUS.
“Americans face a big hurdle these days when they invest overseas: the mighty dollar. The greenback’s ascent over the past year and a half has made investments denominated in foreign currencies worth much less when converted to bucks. The MSCI EAFE index returned 5.8% in local-currency terms in 2015, according to J.P. Morgan. But for U.S.–based investors, the index dipped into the red because of the dollar’s gains. Emerging-markets stocks fared even worse, as commodity-producing nations suffered at the same time as their currencies slid against the dollar,” adds Kiplinger’s.
Vanguard Total International Stock ETF
