All About Vanguard Total
International Stock Index Fund (VGTSX)
For the last couple of weeks, we’ve taken a look at what we believe to be some of the best mutual funds to invest in. Here’s another we’ve found that might interest you, the Vanguard Total International Stock Index Fund, or VGTSX for short. Let’s dive in and take a look.
The Purpose of VGTSX
This fund was created in April of 1996 to watch the FTSE Global All Cap ex US Index and its investment performance. This particular index is able to keep track of performance in the equity market in both emerging and developed markets, about 5,700 of them, to be exact, however, it does not track any stocks within the United States. VGTSX is entirely international. If you’re looking for a mutual fund outside our borders, this is the one for you.
The common stocks within its target index is where all of VGTSX’s assets are invested. This fund takes a look at the region’s weighting and divides its assets based on this info within the index. This fund aims at stocks within its scope that make up the greatest 98% from the market cap.
Is There a Risk to This Fund?
When side-by-side with other funds in its class, VGTSX is considered average for the past three to five years, however, when the scope is broadened to have a look over the past ten years, this fund’s return has been above average.
The past five years have seen a return of 4.55 percent while the past ten years have seen a 6.63 percent return.
How Much Do I Need to Invest?
For first-time investors of VGTSX, you’ll need a minimum investment of $3,000. If you have $10,000, you can partake of Vanguard’s prestigious Admiral share class. While you need a pretty penny to invest, you’ll enjoy the low percent expense ratio of 0.18 percent. If you are a member of the Admiral share class, you’ll enjoy an expense ratio that’s even lower, a staggering 0.04 percent!
Even so, this fund is closed to new investors at this time, so keep your eyes open and be diligent to jump on investing in VGTSX whenever they reopen their doors.
Vanguard is a company based in the United States and prides itself on being the largest mutual fund provider in the nation. They offer mutual funds of all kinds, and not only that, but ETFs, also known as exchange-trade funds. Vanguard is known for products that have a low-cost index, yet brings funds that are actively managed to the table. Vanguard’s commitment to keeping costs low has made them popular with investors and has allowed for fantastic assets to flow into the funds they offer.
The Bottom Line
If you’re in the market for a mutual fund that invests in stocks overseas, VGTSX is the mutual fund for you. You’ll need a good chunk of change to invest, however your expense ratio is minimal. You’ll enjoy above average growth and have a fund that’ll steadily climb over the years. All in all, Vanguard’s VGTSX mutual fund is a fabulous investment option.
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