At a glance
VSS charges 0.06% a year, below the 0.3% average of the 3 funds most like it (the cheapest of 4). It has $13.55B in assets, the largest of that group; it paid 3.05% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +7.2% with distributions reinvested (S&P 500: +11.5%), the weakest of those 4 funds; over three years it returned +18.0% a year. At its worst it fell 31.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 23 months after the low. Its ten largest positions make up 2.4% of the fund, out of 4,839 in all.
The short version
Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) is an index fund that tracks the FTSE Global Small Cap ex US Index. As of July 31, 2026, that meant 4,839 holdings of smaller companies outside the US, in both developed and emerging markets. At 0.06% a year, it costs less than the similar funds compared here, which average 0.30%. One drawback: its price returns trailed all three peers over one and three years through October 29, 2026.
Price history
The interactive chart needs JavaScript.
VSS +7.2% over the year to Oct 30, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| VSS official prospectus, to Dec 31, 2025 | — | +29.99% | — | +6.45% | +7.52% | — |
| VSS price data to Oct 30, 2026 | +4.1% | +7.2% | +18.0% | +4.9% | — | +10.3% |
- Over the year to Oct 30, 2026, VSS returned +7.2%, 4th of 4 among similar funds.
- Its 5-year annualized return was +4.9%.
- Its worst full calendar year was 2022 (-21.5%); its best was 2025 (+29.6%).
- The deepest fall in its price history was 33.9% (Sep 3, 2021 to Oct 14, 2022), recovered by May 15, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +4.0% | — |
| 2025 | +29.6% | +29.99% |
| 2024 | +2.9% | +2.67% |
| 2023 | +17.6% | +15.25% |
| 2022 | -21.5% | -21.22% |
| 2021 | +13.1% | +12.81% |
| 2020 | — | +11.95% |
| 2019 | — | +21.73% |
| 2018 | — | -18.43% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 31.8% over that stretch · deepest drop along the way 31.8%, back to its old high 23.3 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.1600 | |
| 2025 | $4.8500 | +23.1% |
| 2024 | $3.9400 | -30.4% |
| 2023 | $5.6630 | +140.0% |
| 2022 | $2.3600 | -35.7% |
| 2021 | $3.6700 |
What's inside
As of Jul 31, 2026, the fund held 4,839 securities; the ten largest made up 2.4% of assets. It also reported 5.92% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Holding | Weight | |
|---|---|---|
| Hudbay Minerals Inc | 0.27% | |
| Aritzia Inc | 0.27% | |
| Finning International Inc | 0.24% | |
| Storebrand ASA | 0.24% | |
| Accelleron Industries AG | 0.24% | |
| Games Workshop Group PLC | 0.24% | |
| Taiwan Union Technology Corp | 0.24% | |
| Gaztransport Et Technigaz SA | 0.23% | |
| South Bow Corp | 0.22% | |
| Subsea 7 SA | 0.21% | |
| DPM Metals Inc | 0.21% | |
| Aedifica SA | 0.21% | |
| Capital Power Corp | 0.21% | |
| NKT A/S | 0.20% | |
| Nordnet AB publ | 0.20% |
By country
Japan 14.86%Canada 10.49%United Kingdom 8.11%Taiwan 7.7%India 6.87%By asset type
Stocks 98.87%Preferred stock 0.27%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $376.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.84%, -3.64%, -2.59%.
How it works
VSS is the exchange-traded share class of Vanguard FTSE All-World ex-US Small-Cap Index Fund. It aims to track the FTSE Global Small Cap ex US Index, which measures smaller companies outside the United States in both developed and emerging markets. The index is float-adjusted and weighted by market capitalization. That means a company's weight depends on the market value of its shares that are freely available to trade, so bigger companies count for more. As of July 31, 2026, Japan made up 14.9% of the fund, Canada 10.5%, the UK 8.1%, Taiwan 7.7% and India 6.9%.
Vanguard doesn't buy every stock in the index. It uses sampling: it holds a range of stocks that together match the index's key risk factors, and it keeps at least 80% of net assets in index stocks. The fund is extremely spread out. Its 10 largest holdings made up just 2.4% of assets. The two biggest, Hudbay Minerals and Aritzia, were about 0.27% each. Portfolio turnover, the share of holdings replaced over a year, was 27%.
Shares trade on NYSE Arca at market prices, which can differ slightly from the value of the stocks underneath. The fund also held small stock-index futures and currency forward contracts. Its 5.92% cash position is likely collateral from securities lending, which means lending shares to other investors for a fee.
What it really costs
- VSS charges 0.06% a year, versus an average of 0.3% for the similar funds below (1st of 4, cheapest first).
- Of that, 0.02% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $6 in the first year and $77 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| VSS | $6 | $19 | $34 | $77 |
In a retirement portfolio
It adds non-US small-cap and emerging-market stocks that US and large-cap funds hold little of, though it swings more than a typical core fund.
VSS adds thousands of smaller companies outside the US for 0.06% a year. In the SEC's standard example, that comes to $77 over 10 years on $10,000. Its yield was 2.99% over the 12 months to October 29, 2026, paid twice a year rather than monthly.
The swings can be steep. Its worst quarter was a 29.68% loss in early 2020, and it fell 21.22% in calendar 2022. Its price data starts in June 2020, so it doesn't cover 2008. In that data, the deepest drop was 33.9%, from September 2021 to October 2022, and it took 31 months to recover. A retiree who had to sell during that stretch would have locked in losses. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking broad non-US small-cap exposure, including emerging markets such as Taiwan and India, for an expense ratio of 0.06%.
- Long-term holders who value wide diversification: 4,839 holdings, with the top 10 at just 2.4% of assets as of July 31, 2026.
- Investors comfortable with dividends paid twice a year, which yielded 2.99% over the 12 months to October 29, 2026.
Look elsewhere if
- Anyone who may need to sell in a slump: VSS fell 33.9% from 2021 to 2022 and took 31 months to recover.
- Investors who want only developed markets; VSS also holds emerging-market stocks and carries China-related risks.
- Income seekers who want monthly payouts; VSS pays twice a year, and payouts can vary with foreign dividends and currencies.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 30, 2026.Questions investors ask
Is VSS good for a retirement portfolio?
VSS can work as a diversifier rather than a core holding. It adds thousands of smaller non-US companies for 0.06% a year. Its average annual return was 7.52% over the 10 years to December 31, 2025. But it is volatile. It lost 29.68% in the first quarter of 2020 and 21.22% in calendar 2022. Its 2021–2022 drop took 31 months to recover, which matters for anyone who may need to sell in a downturn.
What's the difference between VSS and SCHC?
Both are low-cost international small-cap index ETFs, and about 41% of their holdings overlap. VSS charges 0.06% a year and SCHC charges 0.11%. Schwab's SCHC returned 9.3% over one year and 21.4% a year over three years as of October 27, 2026. VSS returned 8.7% and 19.3% as of October 29, 2026. VSS is larger, with $13.55 billion in net assets across all its share classes as of July 31, 2026.
Does VSS pay dividends?
Yes. VSS pays dividends twice a year, not monthly or quarterly. Over the 12 months to October 29, 2026, it paid $4.51 per share, a yield of 2.99%. The payouts come from the dividends of thousands of foreign small companies. They can rise or fall with those companies' profits and with exchange rates, since the dividends are converted into US dollars.
What is the VSS expense ratio?
VSS's expense ratio is 0.06%, according to its prospectus filed February 27, 2026. That includes a 0.02% management fee. In the SEC's standard example, $10,000 earning 5% a year would cost about $6 after one year and $77 after 10 years. Similar funds cost more: Dimensional's DFIS charges 0.39%, iShares' SCZ 0.40%, and the peer group averages 0.30%.
Does VSS include emerging markets?
Yes. VSS's index covers small companies in both developed and emerging markets outside the US. As of July 31, 2026, Taiwan made up 7.7% of the fund and India 6.87%. Japan was the largest country at 14.86%, followed by Canada and the UK. The prospectus warns that emerging markets carry higher risk and volatility, and it flags extra risks for companies tied to China.