VXUS: A Global Dividend Grab

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Right. So, let’s talk international stocks. Honestly, the whole thing feels a bit…extra, doesn’t it? Like, we’re already juggling enough risk here, and then we’re supposed to start dissecting markets we barely understand? Still, a girl’s gotta diversify, and a girl definitely likes a dividend. That’s where Vanguard Total International Stock ETF (VXUS) and iShares MSCI ACWI ex US ETF (ACWX) come in. Both promising access to everything outside the US, but one is clearly trying harder to earn its keep. And, frankly, I appreciate that.

The pitch is simple: global exposure, because putting all your eggs in one (American) basket is just asking for trouble. These two aim to spread the wealth, covering developed and emerging markets. But the devil, as always, is in the details. And the details, my friends, are surprisingly… revealing.

Snapshot (Let’s Get Down to Brass Tacks)

Metric VXUS ACWX
Issuer Vanguard iShares
Expense ratio 0.05% 0.32%
1-yr return (as of 2026-01-09) 33.7% 34.2%
Dividend yield 3.1% 2.7%
Beta 0.79 0.79
AUM $124.7 billion $8.4 billion

Okay, let’s be real. That expense ratio difference? It’s not just a number. It’s the difference between them taking a polite sip of your profits and practically inhaling them. 0.05% versus 0.32%? That’s… aggressive, on ACWX’s part. And the dividend yield? VXUS is handing out a little more love. It’s the small things, really.

Performance & Risk Comparison (Don’t Get Too Excited)

Metric VXUS ACWX
Max drawdown (5 y) -29.43% -30.06%
Growth of $1,000 over 5 years $1,256 $1,267

Look, they both wobble around a bit when the market gets choppy. The max drawdown is pretty similar, which is… reassuring, I guess. But honestly, I’m less concerned with avoiding losses and more focused on maximizing gains. And that brings us back to those fees. Every penny counts, especially when you’re trying to build a little nest egg for, you know, the inevitable apocalypse.

What’s Inside (The Fine Print, Because There Always Is)

ACWX is holding 1,751 stocks, which sounds impressive, until you realize VXUS is rocking a whopping 8,602. It’s like comparing a curated boutique to a sprawling warehouse. Both have Taiwan Semiconductor Manufacturing, Tencent, and ASML in the mix, but VXUS spreads its bets a little wider. ACWX is heavily into financials, tech, and industrials. VXUS? It’s got a weird obsession with “cash and others.” Honestly, it sounds a bit indecisive. But hey, at least it’s not putting all its eggs in one basket.

Neither fund is doing anything particularly daring – no leverage, no hedging, no ethical screens. Which, frankly, is a relief. Sometimes, you just want a straightforward investment. No surprises. Just a steady stream of dividends. Is that too much to ask?

What This Means For Investors (Let’s Be Honest With Ourselves)

The US market is a beast. We all know it. But pretending it’s the only game in town is just…lazy. There are companies out there, thriving in other corners of the world, that deserve our attention. And our money. VXUS and ACWX are two ways to get access to them. But one is clearly working harder for its keep.

Over the last five years, VXUS has delivered a total return of 48.3% versus ACWX’s 46.4%. The max drawdown is practically identical. Both have a beta of 0.79 – meaning they’re a little less volatile than the S&P 500. But here’s the kicker: that expense ratio. And that dividend yield. It’s the small things, isn’t it?

In conclusion? VXUS. It’s the sensible choice. The efficient choice. The choice that allows me to sleep at night knowing I’m not throwing money away on unnecessary fees. It’s not glamorous, but it’s…responsible. And sometimes, responsibility is surprisingly satisfying.

Glossary (Because We All Need a Little Help)

ETF: Exchange-traded fund. Basically, a basket of stocks that trades like a single stock. Simple enough.
Expense ratio: The annual cost of owning the fund. Pay attention to this one.
Dividend yield: How much income the fund is paying out. My favorite part.
Beta: A measure of risk. Lower is generally better.
AUM: Assets under management. The bigger, the better, usually.
Max drawdown: The biggest loss the fund has experienced. Prepare for the worst.
Total return: Everything you’ve earned, including dividends and price appreciation. The bottom line.
Sector allocation: Where the fund is investing its money. Diversification is key.
Emerging markets: Risky, but potentially rewarding.
Developed markets: More stable, but potentially slower growth.
Concentration risk: Putting too much money in a few stocks. Don’t do it.
Hedging: Protecting your investments from losses. Complicated, and usually unnecessary.

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2026-01-18 01:03