The 3 Largest Global Ex-U.S. ETFs (VEU, VXUS)

Many investors have domestic stock portfolios and would like to complement them with exposure to international equities. However, a large number of international equity funds still invest a portion of their assets in companies based in the United States. For investors who want pure international equity exposure without it being diluted by more American companies, a global ex-U.S. exchange-traded fund (ETF) may be the best option. These funds invest in stocks all over the world, while making a point to avoid investing in the United States. Based on assets under management (AUM), the following is a list of the three largest global ex-U.S. equity ETFs.

The Vanguard FTSE All-World ex-US ETF (NYSEARCA: VEU) was the largest global ex-U.S. fund available as of March 2016, with $12.63 billion in AUM. The fund offers a convenient way to get broad exposure across developed and emerging non-U.S. equity markets around the world. It is a passively managed fund that uses index sampling and seeks to track the performance of the FTSE All-World ex-U.S. Index.

The fund invests in 2,515 different equities and has a median market capitalization of $24.7 billion. Its top 10 holdings equal 9.1% of the portfolio. As for regional exposure, the portfolio is allocated as follows: 46.3% in Europe, 29.7% in the Pacific, 17.7% in emerging markets, 5.7% in North America and 0.6% in the Middle East. The Vanguard FTSE All-World ex-US fund attempts to match the index, which is invested in 44 different countries. The top 10 countries are Japan, the United Kingdom, France, Switzerland, Germany, Canada, Australia, China, Korea and Taiwan. The fund has an expense ratio of 0.13%, which is 89% lower than the average expense ratio of funds with similar holdings. The 12-month trailing yield on the fund is 3.20%, and its 52-week range is $37.80 to $52.13.

The Vanguard Total International Stock ETF (NYSEARCA: VXUS) is the second-largest global ex-U.S. fund currently available, with $5.4 billion in AUM. The fund seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in developed and emerging markets, excluding the United States. It is a passively managed fund that uses index sampling and seeks to track the performance of the FTSE Global All Cap ex-U.S. Index.

The portfolio is the most broadly invested ETF in this list, investing in 5,989 different equities, and has a median market capitalization of $20 billion. As for regional exposure, the portfolio is allocated as follows: 45.9% in Europe, 29.6% in the Pacific, 17.5% in emerging markets, 6.4% in North America and 0.6% in the Middle East. The Vanguard Total International Stock fund attempts to match the index, which is invested in 44 different countries. The top 10 countries are Japan, the United Kingdom, France, Switzerland, Germany, Canada, Australia, China, Korea and Taiwan. The fund has an expense ratio of 0.13%, which is 89% lower than the average expense ratio of funds with similar holdings. The 12-month trailing yield on the fund is 3.07%, and its 52-week range is $39.32 to $53.94.

The third-largest total market global equity ex-U.S. ETF is the iShares MSCI ACWI ex-U.S. ETF (NASDAQGM: ACWX) with $1.89 billion of AUM. This fund seeks to provide investors access to the global equity markets, excluding the United States, including developed and emerging market economies. It is primarily suitable for an investor looking for long-term growth. The fund tracks the MSCI ACWI ex USA Index.

The portfolio is invested in 1,154 different holdings in more than 20 countries. The fund's top-10 weighted countries comprise 72.68% of the portfolio. They are Japan, the United Kingdom, France, Switzerland, Germany, Canada, China, Australia, France and the Netherlands. The three most heavily invested sectors total 48.68% of the portfolio. They are financials, consumer discretionary and industrials. The 12-month trailing yield on the fund is 2.71%, and its 52-week range is $34.47 to $47.89.