Core Insights - The Vanguard Total International Stock ETF (VXUS) is more cost-effective and diversified compared to the iShares MSCI ACWI ex US ETF (ACWX), making it a preferable option for investors seeking international equity exposure [1][12][13] Cost & Size Comparison - VXUS has an expense ratio of 0.05%, significantly lower than ACWX's 0.32% [3][4] - VXUS has a total assets under management (AUM) of $124.7 billion, while ACWX has $8.4 billion [3] - The one-year return for VXUS is 33.7%, slightly lower than ACWX's 34.2% [3] Performance & Risk Metrics - Over the last five years, VXUS has generated a total return of 48.3%, compared to ACWX's 46.4% [11] - The maximum drawdown for VXUS is -29.43%, while ACWX's is -30.06% [5][11] - Both funds have a beta of 0.79, indicating lower volatility compared to the S&P 500 [3][11] Holdings & Sector Allocation - VXUS holds 8,602 stocks, providing broader diversification, while ACWX holds 1,751 stocks [6][7] - ACWX is heavily weighted towards financial services (25%), technology (15%), and industrials (15%) [6] - VXUS has a significant allocation to cash and others (53%), with smaller portions in industrials and technology [7] Dividend Yield - VXUS offers a higher dividend yield of 3.1% compared to ACWX's 2.7% [4][12]

Investment Trend Overview - The investment trend is shifting towards skepticism about American assets, with the iShares MSCI ACWI ex US ETF (ACWX) gaining 26.7% this year compared to a 14.8% increase in the SPDR S&P 500 ETF Trust (SPY) [1] U.S.-China Trade Relations - Recent easing of U.S.-China trade tensions and the Federal Reserve's rate cuts have not improved SPY's performance, which decreased by 0.03% over the past month, while ACWX increased by 0.5% [2] Factors Affecting U.S. Market Appeal - The decline in U.S. market attractiveness began in April following President Trump's "Liberation Day," which caused a selloff in U.S. stocks, bonds, and the dollar [3] - Uncertain policy sentiment and overexposure to U.S. assets are significant factors contributing to the U.S. market's waning appeal [5] Concentration Risks in U.S. Tech Sector - Concerns about AI-led bubbles and overvaluation are impacting major U.S. equity indexes, particularly due to the "Magnificent 7" companies, which constitute about one-third of the S&P 500's market cap [6] - In contrast, Europe's STOXX Europe 600 has a more balanced structure, with its top 10 stocks accounting for only 17% of the index's market cap across various sectors [7] Valuation Comparison - As of November 7, 2025, ACWX has a price-to-earnings (P/E) multiple of 18.44X, significantly lower than the iShares Core S&P 500 ETF (IVV) at 29.89X, indicating that international equities are undervalued [8] Performance of International Equities ETFs - The best-performing international equities ETFs of 2025 include: - First Trust Developed Markets ex-US AlphaDEX Fund (FDT) – Up 41.2% YTD - iShares International Select Dividend ETF (IDV) – Up 37.7% YTD - First Trust Developed Markets ex-US Small Cap AlphaDEX Fund (FDTS) – Up 37.6% YTD - Global X MSCI SuperDividend EAFE ETF (EFAS) – Up 31.5% YTD - Franklin FTSE Eurozone ETF (FLEU) – Up 34.4% YTD [9]