Opinions Richard Orrell
Vanguard FTSE All-World ex-US Index Fund ETF.VEUBUYJan 29, 2026
Richard OrrellStock price when the opinion was issued
As of Jun 03, 2026. Market Open.
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Global equities, minus the US. Although US market has performed extremely well, international markets have quietly performed as well last year if not better. International markets have lower valuations. Weakening USD will benefit international equities. MER is only ~4 bps. Great diversification. Yield is ~3%.
As to position size, he'd need to know a bit more about the investor. Perhaps anywhere from 10-30% in the equity portion of your portfolio.
His firm's taken its clients up to a 15% weight in global equities outside NA. Problem is that most global funds are 60-75% US stocks, which just replicates holdings. Valuations are much lower in global stocks. Global stocks had 10 years of underperformance, and have broken out to new highs -- typically means it's the beginning of a longer-term bull market. And we're 1 year into it.
Everybody needs to have some global equity exposure, it's really important. The sectors that make up the global equity universe are largely financials, industrials, and materials -- the sectors that are leading.
David Burrows
Vanguard does a great job with its ETFs. This one is the whole world, but minus any US companies domiciled in the US. Some of these companies probably have revenue from the US, so it doesn't eliminate US exposure completely. Good diversifier.
Can't speak to this specific ETF, but he does like some of the international markets. They performed very well last year. They've been depressed for a long time, so there's still opportunity there.
As to timing, an investor has to make that call themselves. You want to pick your price point. He's still fairly positive on the outlook internationally. If you have a longer-term horizon, and you're considering an ETF that's broad-based, then you should add.