Vanguard Total World Stock ETF

VT

Market cap $64.3B

ETFs to diversify beyond US stocks. ETFs to diversify beyond US stocks.

ACWX charges a higher expense ratio but offers a larger dividend yield than VT. VT has outperformed ACWX on five-year growth, but ACWX has led over the past year.

Global stocks are still outperforming US shares so far in 2026, extending last year's winning run. Using a set of ETFs through yesterday's close (Jan. 21), all the major equity regions of the world are maintaining a healthy lead over the US.

Cullen Roche emphasizes that portfolio construction must be highly customized to individual timelines, risk tolerances, and financial goals. Traditional diversification strategies, like the 60/40 portfolio, face new challenges given elevated valuations and diminished bond diversification; temporal diversification is now critical.

Vanguard Total World Stock Index Fund ETF is rated 'Hold' due to a lack of distinguishing features versus peers and current technical overextension. VT offers broad global equity exposure with a 62.5% US allocation, high tech and financials concentration, and a low 0.06% expense ratio. Recent performance is strong (22.31% YoY), but VT lags IOO and SPGM and is currently trading above historical support and in overbought territory.

These ETFs can be the cornerstone of any portfolio.

In my equity watchlist there will not be only the USA, I will closely follow global markets, especially factor strategies. In the bond segment, I really appreciate active management; I think passive ones will remain poorly able to capture the evolutions of 2026. Among the segments with alpha potential, I identify the small cap value segment due to lower valuations and better earnings expectations.

VXUS has delivered a higher one-year return and yield than VT, but experienced a steeper five-year drawdown. Both funds offer broad global diversification, but VT includes U.S. stocks while VXUS excludes them.

VXUS offers a higher dividend yield and slightly lower expense ratio compared to VT VT includes U.S. stocks while VXUS focuses strictly on international equities, resulting in different sector exposures and top holdings Both funds are highly liquid and passively managed, but VT has delivered higher five-year growth and shallower drawdowns These 10 Stocks Could Mint the Next Wave of Millionaires ›

SPGM charges a slightly higher expense ratio than VT but offers a meaningfully higher dividend yield. Both ETFs delivered similar one-year returns, and their five-year growth for a $1,000 investment was $1,665 for VT and $1,715 for SPGM.