ETF Evaluator: Vanguard FTSE All-Wld ex-US SmCp ETF () Follow This ETF

Vanguard FTSE All-Wld ex-US SmCp ETF Overview

Vanguard FTSE All-Wld ex-US SmCp ETF (VSS) is a passively managed International Equity Foreign Small/Mid Blend exchange-traded fund (ETF). Vanguard launched the ETF in 2009.

The investment seeks to track the performance of a FTSE Global Small Cap ex U.S. Index that measures the investment return of stocks of international small-cap companies. The fund employs an indexing investment approach designed to track the performance of the FTSE Global Small Cap ex U.S. Index (the “Target Index”), a float-adjusted, market-capitalization-weighted index designed to measure equity market performance of international small-capitalization stocks. Under normal circumstances, it invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in the stocks that make up the Target Index.

About Vanguard FTSE All-Wld ex-US SmCp ETF (VSS)

There are 3 members of the management team with an average tenure of 7.60 years: Jeffrey Miller (2015), Nicole Brubaker (2025) and Michael Perre (2016). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: FTSE Global All Cap ex US TR USD index with a weighting of 100% and FTSE Gbl SmallCap Ex US TR USD index with a weighting of 100%. Vanguard FTSE All-Wld ex-US SmCp ETF has 4897 securities in its portfolio. The top 10 holdings constitute 2.5% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Vanguard FTSE All-Wld ex-US SmCp ETF is part of the Equity global asset class and is within the International Equity ETF group. Vanguard FTSE All-Wld ex-US SmCp ETF has 92.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.8% There is 92.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Vanguard FTSE All-Wld ex-US SmCp ETF has 6.2% of the portfolio in cash.

Assets Under Management

The fund has $11 billion in total assets, which is above the $3 billion average for the Foreign Small/Mid Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

VSS Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard FTSE All-Wld ex-US SmCp ETF expense ratio is low compared to funds in the Foreign Small/Mid Blend category. Vanguard FTSE All-Wld ex-US SmCp ETF has an expense ratio of 0.06%, which is 85% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard FTSE All-Wld ex-US SmCp ETF has a portfolio turnover rate of 27%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 17% for the Foreign Small/Mid Blend category.

Recently, in the month of July 2026, Vanguard FTSE All-Wld ex-US SmCp ETF returned -2.6%, which earned it a grade of F, as the Foreign Small/Mid Blend category had an average return of 1.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Vanguard FTSE All-Wld ex-US SmCp ETF has a trailing yield of 3.31%, which is above the 2.98% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Vanguard FTSE All-Wld ex-US SmCp ETF Grades

Year to date, the ETF has returned 5.4%, 3.3 percentage points worse than the category, which translates into a grade of F. The fund has returned 16.1% over the past year (grade of F), 12.8% over the past three years (grade of F) and 5.0% per year over the past five years (grade of F) and 7.4% per year over the past 10 years (grade of F).

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