Vanguard's Top Performing ETF Surpasses iShares Counterpart in Asset Base

A new report from investment research firm Morningstar has revealed that the Vanguard FTSE All-World ex-US Index Fund (VXUS) now holds more assets than its primary competitor, the iShares MSCI All Country World ex US ETF (ACWX). As of February 2023, VXUS boasts over $13.8 billion in assets under management, surpassing ACWX’s $12.6 billion. The Vanguard ETF has seen significant growth in recent years, driven by investor demand for low-cost index funds that track international markets. The fund’s performance has been particularly strong, with a 5-year annualized return of 14.3%, outpacing the broader market and its iShares counterpart. One key factor contributing to VXUS’s success is its lower expense ratio compared to ACWX. Vanguard’s fund charges an expense ratio of just 0.10%, whereas ACWX comes with an expense ratio of 0.42%. This difference in fees can have a substantial impact on long-term investment returns, making VXUS an attractive option for investors seeking cost-effective exposure to international markets. Another advantage of VXUS is its robust track record of performance, dating back over a decade. The fund has consistently delivered strong returns, even during periods of market volatility. This stability and reliability are essential qualities for investors seeking a reliable source of returns in their portfolios. While ACWX remains a popular choice among investors, VXUS’s newfound lead in asset base suggests that Vanguard is well-positioned to capture more market share. As the ETF landscape continues to evolve, it will be worth keeping an eye on this top-performing fund as it seeks to build on its momentum and further establish itself as a leader in the global index fund category. For investors looking to capitalize on the growing demand for international exposure at a low cost, VXUS is certainly worth considering. With its strong track record, competitive pricing, and robust asset base, this top-performing ETF appears poised to continue delivering strong returns for years to come.