Vxus
In short
Vxus is an exchange-traded fund (ETF) that tracks the performance of the entire global stock market, excluding the United States.
In plain words
It allows investors to buy tiny pieces of thousands of companies located in Europe, Asia, and other regions outside America. This helps people spread their money across the whole world rather than just one country.
A simple example
If you buy one share of Vxus, you are effectively investing in companies like Samsung in South Korea or Nestlé in Switzerland at the same time.
Why it matters
It provides instant diversification for investors who already own many US-based stocks. This reduces the risk of losing money if the American economy performs poorly.
Easy to mix up
Do not confuse it with VTI, which focuses only on companies within the United States.