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Vanguard Total World Stock Index Fund ETF Shares

VT:NYSE

equity ETF | passive | Vanguard | Tracks FTSE Global All Cap Index

Market Price

US$145.84 (26 Jan 2026)

+22.43% (YoY)

NAV

US$145.09

+0.52% Premium

Yield

1.83%

Expense Ratio

0.06%

-94% vs Avg: 0.97%

Box Set (ETF)

⚡ Executive Summary

📊 The Bottom Line

This ETF tracks the FTSE Global All Cap Index, providing comprehensive exposure to the entire global stock market, including both developed and emerging markets, and companies of all sizes. With an extremely low expense ratio and broad diversification across over 9,900 holdings, it stands as a highly efficient vehicle for long-term global equity exposure. The bull case projects NAV reaching US$173.12 (+19.3%), while the bear case suggests US$115.93 (-20.1%) over 12-18 months.

⚖️ Risk vs Reward

The underlying global equity holdings currently trade at an aggregate P/E of 18.38x and P/B of 2.87x, which is in line with the category average but slightly below the index. Global markets have seen strong performance in 2025, driven by a combination of US equity strength and a nascent recovery in ex-US markets. While the fund offers unparalleled diversification, it is subject to broad market downturns and currency fluctuations. The potential for further upside is balanced by macroeconomic risks and geopolitical uncertainties, creating a moderately attractive risk-reward profile.

🚀 Why VT Could Soar

• Global economic recovery accelerates, driving stronger corporate earnings across developed and emerging markets, translating to 10-15% NAV upside through multiple expansion and earnings growth.
• Continued strength in US mega-cap technology, which constitutes a significant portion of the fund, propels overall global market performance, adding 8-12% to NAV via sustained innovation and market leadership.
• Increased investor allocation to diversified global strategies for long-term growth and inflation hedging, boosting inflows and market demand for VT, potentially enhancing its premium to NAV.

⚠️ What Could Go Wrong

• Significant economic slowdown or recession in major global economies (US, China, Europe) could trigger a broad market sell-off, leading to 15-20% NAV downside from earnings contraction and multiple compression.
• Geopolitical tensions escalate, particularly in emerging markets, causing risk aversion and capital flight, impacting a material portion of the fund's holdings and leading to underperformance.
• Unfavorable currency movements against the USD could erode returns for US-based investors, given the fund's unhedged international exposure, potentially reducing returns by 5-10%.

🏢 Fund Overview

What Are You Actually Buying

The global equity market represents the total investable universe of publicly traded companies worldwide, encompassing developed and emerging economies, across all market capitalizations.
It is characterized by diverse economic drivers, regulatory environments, and growth potentials, offering unparalleled diversification benefits against single-country or single-sector risks.
This market includes established multinational corporations, growth-oriented technology firms, and cyclical industries, providing exposure to various stages of economic development and innovation cycles.

Market Dynamics & Outlook

Global equities are currently supported by resilient corporate earnings, particularly in the US, and expectations of moderating inflation and potential interest rate cuts in 2026.
Emerging markets are showing signs of recovery, driven by improving economic fundamentals and a weaker USD, offering potential diversification benefits and growth opportunities.
However, geopolitical risks, including ongoing conflicts and trade tensions, along with persistent inflation concerns in certain regions, continue to create volatility and uncertainty for the global outlook.

🎯 Why This Matters

Understanding the global equity market is crucial as it offers broad diversification and captures long-term economic growth. However, investors must consider the interplay of diverse regional economic cycles, currency fluctuations, and geopolitical risks that collectively shape returns and volatility.

📈 Valuation & Analysis

Historical Performance

YTD

+3.39%

+22.43%

Yearly Growth (3Y)

+20.27%

Yearly Growth (5Y)

+11.02%

Yearly Growth (10Y)

+11.77%

Yearly Growth (Since Inception)

+8.42%

Current Valuation

The Vanguard Total World Stock ETF's underlying holdings currently trade at an aggregate price-to-earnings (P/E) ratio of 18.38x and a price-to-book (P/B) ratio of 2.87x. These metrics are slightly below the category average P/E of 18.83x and P/B of 3.32x, suggesting a relatively fair valuation compared to its peers. Historically, VT's P/E has ranged from 8.7x to 30.49x over the past decade, with a median of 17.1x. The current P/E is therefore modestly above its 10-year median, indicating that while not excessively expensive, it is not in bargain territory. The fund offers a dividend yield of 1.87%, which is in line with the index's 1.81% and the category's 1.68%. This yield falls within its 10-year range of 1.37% to 3.1%, with a median of 1.98%, suggesting a moderate income component. Overall, the current valuation reflects a mature market cycle with growth expectations priced in, rather than significant undervaluation or overvaluation.

The Bull Case - Upside to

Global Economic Growth Accelerates

Medium Probability

A stronger-than-expected global economic recovery could boost corporate earnings across developed and emerging markets by 10-15%, potentially driving the ETF's NAV higher by 15-20% through multiple expansion and earnings growth.

Sustained Mega-Cap Technology Outperformance

Medium Probability

Continued robust performance from the fund's significant allocation to US mega-cap technology companies, driven by innovation and strong financials, could add an additional 8-12% to the ETF's NAV.

Increased Allocations to Diversified Strategies

High Probability

A shift in investor sentiment towards broad, diversified global equity exposure for long-term growth and inflation hedging could lead to sustained inflows into VT, potentially enhancing its market price and premium to NAV by 5-10%.

The Bear Case - Downside to

Global Economic Slowdown or Recession

Medium Probability

A significant deceleration or recession in major global economies (US, Europe, China) could lead to a broad market sell-off, causing a 15-20% decline in corporate earnings and a potential 20-25% drop in the ETF's NAV.

Escalation of Geopolitical Tensions

Medium Probability

Increased geopolitical instability, particularly in key emerging markets or trade-sensitive regions, could lead to heightened risk aversion, capital flight, and a 10-15% negative impact on the fund's NAV.

Adverse Currency Fluctuations

High Probability

Significant appreciation of the US dollar against major foreign currencies could erode returns from the fund's unhedged international holdings, potentially reducing total returns for US investors by 5-10%.

Risk/Reward Assessment

The risk-reward assessment for the Vanguard Total World Stock ETF indicates a balanced outlook. On the upside, a global economic resurgence and continued strong performance from influential technology holdings could drive substantial NAV appreciation. The ETF's inherent diversification also offers a degree of resilience against localized downturns. However, investors must be mindful of significant macroeconomic headwinds, including the potential for a global recession or escalating geopolitical conflicts, which could severely impact market sentiment and corporate earnings. Furthermore, currency volatility poses a persistent, unhedged risk for a fund with such broad international exposure. While the long-term growth prospects of global equities remain compelling, current valuations and the prevalence of macro risks suggest that both material upside and downside scenarios are plausible, requiring investors to have a long-term horizon and tolerance for volatility.

Peer Comparison

• VT offers an exceptionally low expense ratio of 0.06%, significantly lower than most global equity peers, directly translating to higher net returns over the long term. • The fund provides unmatched diversification with nearly 10,000 holdings across developed and emerging markets, reducing single-stock or single-country risk. • Its substantial AUM of US$76.6 billion ensures high liquidity and tight bid-ask spreads, making it efficient for trading even for large institutional investors. • While its performance metrics are highly competitive, some peers may offer slightly different geographical or market-cap tilts that might appeal to specific investment theses, but VT offers the most comprehensive 'set-it-and-forget-it' global exposure.

Fund	Expense Ratio	AUM (B)	1Y Return	3Y Return	5Y Return	Yield
Vanguard Total World Stock Index Fund ETF Shares (VT) ⭐	6.00%	US$76.6B	22.43%	20.27%	11.02%	0.02%
iShares MSCI ACWI ETF (ACWI)	32.00%	US$26.5B	22.43%	20.67%	11.19%	0.01%
SPDR Portfolio MSCI Global Stock Market ETF (SPGM)	9.00%	US$1.4B	23.10%	19.48%	11.34%	0.02%

🎯 Why This Matters

The valuation and peer analysis reveal that VT offers a highly cost-effective and diversified route to global equity exposure. Its competitive performance and vast holdings make it a foundational asset for long-term investors seeking broad market participation. However, investors should regularly assess global macroeconomic conditions and their impact on such a broad market-cap weighted fund.

📊 Appendix

Top 10 Holdings (80+ of ETF Value)

#	Ticker	Logo	Name	Sector	Weight
1	NVDA	N	NVIDIA Corp	Technology	0.0%
2	AAPL	A	Apple Inc	Technology	0.0%
3	MSFT	M	Microsoft Corp	Technology	0.0%
4	AMZN	A	Amazon.com Inc	Consumer Cyclical	0.0%
5	AVGO	B	Broadcom Inc	Technology	0.0%
6	GOOGL	A	Alphabet Inc Class A	Communication Services	0.0%
7	META	M	Meta Platforms Inc	Communication Services	0.0%
8	GOOG	A	Alphabet Inc Class C	Communication Services	0.0%
9	TSLA	T	Tesla Inc	Consumer Cyclical	0.0%
10	TPE:2330	T	Taiwan Semiconductor Manufacturing Co Ltd	Technology	0.0%

Fund Mechanics

How It Works

The Vanguard Total World Stock Index Fund ETF employs an indexing investment approach designed to track the performance of the FTSE Global All Cap Index. This benchmark measures the investment return of global stocks, encompassing companies of all sizes, across both developed and emerging markets. The advisor aims to replicate the index's performance by investing all, or substantially all, of its assets in common stocks within the index, and by holding a representative sample of securities that reflects the full index in terms of key risk factors and other characteristics. This market-cap-weighted approach benefits investors by capturing the market's collective opinion of each stock's value while keeping turnover low. The fund's strategy includes over 9,900 stocks, and the managers almost fully replicate the benchmark where feasible. The index reconstitutes semi-annually in March and September, utilizing buffer rules around cutoff points to manage turnover and ensure holdings are investable. Vanguard's independent risk-management team closely monitors adherence to predetermined tracking tolerances, with managers compensated based on tracking error and excess return metrics to align their interests with investors'.

Holdings Breakdown

Number of Holdings

9950

Top 10 Concentration

23.6%

Turnover Rate

340%

Category	Weight	Description
Technology	26.5%	Companies developing software, hardware, semiconductors, and IT services.
Financial Services	17.1%	Banks, insurance companies, real estate firms, and diversified financial services.
Industrials	11.1%	Aerospace, defense, construction, machinery, and professional services.
Consumer Cyclical	10.5%	Discretionary goods and services, including automotive, retail, and media.
Healthcare	9.1%	Pharmaceuticals, biotechnology, healthcare equipment, and services.
Communication Services	8.4%	Telecommunication services, media, entertainment, and interactive services.
Consumer Defensive	4.9%	Non-discretionary goods and services, including food, beverage, and household products.
Basic Materials	4.0%	Companies involved in chemicals, construction materials, mining, and paper products.
Energy	3.5%	Companies engaged in the exploration, production, and refining of oil and gas.
Utilities	2.5%	Electric, gas, and water utilities.
Real Estate	2.5%	Real estate investment trusts (REITs) and real estate management and development.

Cost Efficiency

Expense Ratio

0.06%

Median Bid-Ask Spread

0.020%

Metric	1 Year	3 Year	5 Year
Tracking Error	N/A	N/A	N/A
Tracking Difference	0.03%	-0.11%	-0.09%

Performance History

Year	ETF Return	Benchmark Return	Tracking Diff	Volatility	Max Drawdown	Sharpe Ratio
2025	22.44%	22.41%	0.03%	N/A	N/A	N/A
2024	16.48%	16.69%	-0.21%	N/A	N/A	N/A
2023	21.90%	22.03%	-0.13%	N/A	N/A	N/A
2022	-18.00%	-17.98%	-0.02%	N/A	N/A	N/A
2021	18.25%	18.40%	-0.15%	N/A	N/A	N/A
2020	16.74%	16.63%	0.11%	N/A	N/A	N/A
2019	26.80%	26.91%	-0.11%	N/A	N/A	N/A
2018	-9.67%	-9.74%	0.07%	N/A	N/A	N/A
2017	24.19%	24.22%	-0.03%	N/A	N/A	N/A
2016	8.77%	8.82%	-0.05%	N/A	N/A	N/A
2015	-1.88%	-1.82%	-0.06%	N/A	N/A	N/A

Annualized Return Since Inception

8.43%

Detailed Peer Comparison

Ticker	Name	Issuer	Exp Ratio	AUM (B)	1Y	3Y	5Y	Yield	StdDev 3Y	Sharpe 3Y	Spread
VT ⭐	Vanguard Total World Stock Index Fund ETF Shares	Vanguard	6.00%	US$76.6B	22.4%	20.3%	11.0%	0.02%	11.57%	1.24	0.020%
ACWI	iShares MSCI ACWI ETF	iShares	32.00%	US$26.5B	22.4%	20.7%	11.2%	0.01%	N/A	N/A	0.010%
SPGM	SPDR Portfolio MSCI Global Stock Market ETF	State Street Corporation	9.00%	US$1.4B	23.1%	19.5%	11.3%	0.02%	N/A	N/A	N/A
Category Average			0.97%	—	25.4%	13.4%	4.2%	0.02%	—	1.00	—

Risk Metrics

Beta

1.02

Alpha

-0.58

R-Squared

99.31

Standard Deviation

1 Year	3 Years	5 Years	10 Years
20.64%	11.57%	N/A	N/A

Sharpe Ratio

1Y	3Y	5Y	10Y
N/A	1.24	N/A	N/A

Sortino Ratio

3 Years	5 Years
0.70	N/A

Maximum Drawdown

1 Year	3 Years	5 Years	Since Inception
N/A	-9.68%	N/A	-50.27%

Upside Capture

9900.0%

Downside Capture

10200.0%

Correlations

Liquidity & Trading

Volume

Avg Daily Shares

3,992,297

Avg Daily Dollar Volume

US$582.2M

Trend

increasing

Bid-Ask Spread

Metric	Value
Median (Percent)	0.020%
Median (Dollar)	US$0.03
During Hours	N/A
At Close	N/A
Volatility	low

Premium/Discount to NAV

Metric	Value
Current	0.52%
30-Day Average	0.06%
1-Year Average	N/A
Standard Deviation	N/A
Max Premium (1Y)	0.15%
Max Discount (1Y)	0.00%

Creation/Redemption Activity

Net Flows

Period	Net Flow

⚠️ Disclaimer: This ETF research report is for informational and educational purposes only. It does not constitute investment advice, a recommendation, or an offer to buy or sell securities. EC² Invest is not a registered investment advisor. All data is sourced from public sources and may contain errors. Past performance does not guarantee future results. ETF investing involves risk, including possible loss of principal. Always conduct your own research and consult with a qualified financial professional before making investment decisions.