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Foreign Exposure Simplified: Vanguard's Total International Stock ETF for 2025 Portfolio Diversification


Published on 2025-01-03 08:41:07 - MSN
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  • Investors are often told that diversification is among the most important things you can focus on. It helps you avoid putting all of your eggs in one basket, which is going to be bad if that basket gets dropped.

The article from MSN Money discusses the benefits of including Vanguard's Total International Stock ETF (VXUS) in a 2025 investment portfolio for diversification. It highlights that VXUS provides exposure to a broad array of international stocks, covering both developed and emerging markets, which can help mitigate risks associated with a U.S.-centric investment strategy. The ETF includes over 7,000 stocks from companies outside the U.S., offering investors a way to tap into global economic growth, currency diversification, and potentially higher returns from fast-growing economies. The piece explains that while international stocks might carry higher volatility, they also offer the potential for significant long-term growth, especially in regions like Asia and Europe. It also notes the importance of considering geopolitical risks, currency fluctuations, and different regulatory environments when investing internationally. The article concludes by suggesting that adding VXUS can enhance portfolio diversification, reduce country-specific risk, and potentially improve returns over the long term.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/savingandinvesting/foreign-exposure-simplified-vanguard-s-total-international-stock-etf-for-2025-portfolio-diversification/ar-AA1wTVnB ]
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