An ETF to Own 6,000 Foreign Stocks

With foreign shares cheap and the dollar's strength possibly fading, markets outside the U.S. beckon.

Many people prefer the comforts of home when investing. That’s been a winning strategy lately, with Standard & Poor’s 500-stock index clocking the MSCI EAFE index, which tracks stocks in developed foreign markets, by an average of 10 percentage points per year over the past three years. But foreign stocks are cheaper than those in the U.S., and governments in Europe and other regions continue to promote easy-money policies even as the U.S. has begun to raise interest rates. These factors enhance the appeal of an exchange-traded fund such as Vanguard Total International Stock Index ETF (VXUS).

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Daren Fonda
Senior Associate Editor, Kiplinger's Personal Finance
Daren joined Kiplinger in July 2015 after spending more than 20 years in New York City as a business and financial writer. He spent seven years at Time magazine and joined SmartMoney in 2007, where he wrote about investing and contributed car reviews to the magazine. Daren also worked as a writer in the fund industry for Janus Capital and Fidelity Investments and has been licensed as a Series 7 securities representative.