Summary

• Vanguard FTSE All-World ex-US Small-Cap Index ETF continues to outperform, returning over 44% YoY and surpassing VTI by 7 percentage points.
• I reiterate a buy rating on VSS, citing its low 12.8x P/E, 9.24% EPS growth, and attractive PEG under 1.3x.
• VSS offers broad international small-cap exposure, a 3% dividend yield, strong momentum, and sector diversification, with Industrials and Materials leading.
• Technical indicators remain bullish with shares at record highs, a rising 200-day moving average, and favorable April–July seasonality.

International stocks continue to perform well. Last year, the ex-US index produced alpha thanks to a sharply falling dollar. Over the past 12 months, however, the greenback is down by only about a percentage point. Still, the Vanguard FTSE All-World ex-US Small-Cap

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of VSS, VTI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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