VSS ETF

Virgin Galactic Holdings Inc (NYSE:SPCE) shares recovered slightly before Friday's opening bell as it readied for the launch of the VSS Unity on the suborbital Galactic 07 mission, with the flight window opening on Saturday, June 8.   Shares of the California-based aerospace and space travel firm were up 1.4% premarket at $0.84 but are down about 5.6% this week.

U.S. small-cap stocks have underperformed in recent years, but investing in small-caps outside the U.S. may offer diversification and catch-up momentum potential. Vanguard FTSE All-World ex-US Small-Cap Index Fund ETF Shares allows investors to diversify their portfolios with a low expense ratio and a highly diversified portfolio. The VSS ETF has outperformed similar international small-cap ETFs and offers broad diversification, low expense ratio, and attractive PE ratios, but comes with geopolitical and currency risks.

Vanguard FTSE All-World ex-US Small-Cap Index Fund ETF Shares is invested in over 4000 small and mid-cap stocks from developed and emerging markets. The VSS ETF is well-diversified across countries, sectors and holdings, and shows a better-than-average valuation in its investing universe. With a low expense ratio and an attractive performance in its category, VSS is a good option for investors seeking global diversification with a focus on smaller companies.

Small cap ex-US keeps correlations low with overperforming US large cap indices. Having lagged in performance compared to US large caps, ETFs like the Vanguard FTSE All-World ex-US Small-Cap ETF could be an attractive factor to cycle into. PEs are low, there are usually idiosyncratic growth opportunities in small cap, and the expense ratio on VSS is low, making this a useful factor asset.