The Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) is a compelling investment vehicle for those seeking to diversify their portfolio with a focus on global small-cap equities outside the United States. This ETF is strategically designed to tap into the growth potential of smaller companies, which are often overlooked in international markets. By investing in VSS, investors gain exposure to a comprehensive basket of small-cap stocks spanning across both developed and emerging markets, excluding the U.S.
VSS stands out in the Size and Style category, zeroing in on the Small Cap segment, which has historically delivered higher growth rates compared to larger counterparts, albeit with increased volatility. The fund is particularly appealing to investors who are not just looking for geographical diversification but are also targeting the unique growth opportunities presented by smaller, agile companies operating in a broad-based, global context.
The ETF's underlying index, the FTSE Global Small Cap ex US Index, is meticulously curated to ensure a balanced representation of small-cap firms across various sectors and regions. This strategic diversification can potentially reduce risk while capturing the dynamism of burgeoning international markets. With its low expense ratio, VSS is an attractive option for cost-conscious investors aiming to enhance their portfolio's international exposure by leveraging the untapped potential of small-cap companies worldwide.
Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) Fund Flow Chart
Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) 1 year Net Flows: -$75M