VXUS holds international equities outside the U.S. (both developed and emerging markets), providing geographic diversification for a U.S.-heavy portfolio. Notably, its top holdings include semiconductor names like TSMC, Samsung Electronics, and ASML.

Its 2.51% dividend yield is higher than typical U.S. equity ETFs, and its one-year return (23.2%) has recently edged out VOO's (19.0%). For investors who want to avoid concentrating entirely in the U.S., allocating roughly 20-30% of a portfolio to VXUS is a reasonable way to keep that principle.