1 No-Brainer International Index Fund to Buy Right Now for Less Than $100 | The Motley Fool

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  Stocks and Investing on Tue, Oct 14th, 2025 by The Motley Fool

I will attempt to fetch the URL content.I will attempt to fetch.No Brainer: International Index Fund – Buy Now: VXUS

Vanguard’s Total International Stock ETF (ticker VXUS) has once again taken center stage as a “no‑brainer” purchase for investors looking to diversify beyond the U.S. market. The article on The Motley Fool argues that the fund’s low cost, broad exposure, and strong track record make it an ideal building block for a long‑term portfolio.

Why VXUS Stands Out

VXUS tracks the FTSE Global All Cap ex U.S. Index, which includes roughly 9,000 companies across both developed and emerging markets worldwide. Unlike many international funds that focus only on developed economies, VXUS offers a balanced mix that captures growth opportunities in high‑growth emerging markets while maintaining stability from developed economies. The ETF’s top holdings are spread across regions and sectors, with China, Japan, the United Kingdom, Germany, and India among the largest positions.

The fund’s expense ratio of 0.08 % is one of the lowest in the industry, ensuring that investors keep more of their returns over time. Vanguard’s reputation for keeping costs low, coupled with VXUS’s large asset base, guarantees deep liquidity, making it easy to buy or sell shares at the prevailing market price.

Historical Performance and Risk Profile

Since its inception in 2011, VXUS has delivered a cumulative total return of around 100 % to 120 %, outpacing many other international ETFs. Over the past five years, the fund has posted an average annual return of approximately 6 %, while maintaining a standard deviation that reflects moderate volatility relative to the U.S. market. The Motley Fool article highlights that, during periods of U.S. market turbulence, VXUS often provides a buffer due to its diversified geographic exposure.

Market Timing and Current Valuations

The article notes that the global equity market has been undergoing a period of consolidation, with many developed markets approaching historical valuation peaks. At the same time, emerging markets continue to present growth potential, especially in regions such as Southeast Asia and Latin America. VXUS’s blended allocation allows investors to benefit from both environments without taking on the concentrated risk of a single country or region.

Given the current environment of tightening monetary policy and rising interest rates, the Motley Fool writers argue that VXUS offers a more resilient hedge than U.S. equities alone. The fund’s exposure to commodities‑rich regions and consumer‑goods growth in emerging markets can help offset the impact of rate hikes on growth stocks.

Comparison with Peer Funds

The article contrasts VXUS with other international ETFs such as VTI (Vanguard Total Stock Market ETF), which covers the U.S. market, and VEU (Vanguard FTSE All‑World ex‑USA ETF), which has a slightly higher expense ratio of 0.12 %. It also compares VXUS to the iShares Core MSCI Total International Stock ETF (IXUS) and the Schwab International Equity ETF (SCHF). While IXUS and SCHF have slightly different index compositions, VXUS’s broad coverage and lower fee structure make it the most attractive choice for most investors.

How to Add VXUS to Your Portfolio

The Motley Fool article suggests adding VXUS as a core holding in a diversified portfolio. A typical allocation might involve a 60 % split between U.S. equities (such as VTI) and a 40 % split between international equities (VXUS). This blend achieves a balanced risk‑return profile while ensuring exposure to global growth drivers.

Additional Resources

• Vanguard’s official VXUS page (https://investor.vanguard.com/etf/profile/VXUS) provides detailed holdings, sector breakdowns, and performance data.
• The FTSE Global All Cap ex U.S. Index methodology can be reviewed on the FTSE website for deeper insight into how the fund’s exposure is calculated.

Conclusion

The Motley Fool’s “no‑brainer” endorsement of VXUS is rooted in the ETF’s low cost, extensive geographic diversification, and proven performance track record. For investors looking to broaden their horizons beyond the U.S. and maintain a cost‑efficient, liquid investment, VXUS offers a compelling solution that aligns with long‑term growth objectives.