Home/Small Caps/VISM

VISM

$72.20+0.28%Small Caps46/100
Fund Page ↗

Vanguard MSCI Intl Small Companies Index ETF · Vanguard

Data as at 29 March 2026

TL;DR

Tracks approximately 4,000 small-cap companies from developed markets outside Australia. Adds small-cap diversification to a portfolio built on VGS or BGBL, which only cover large and mid-cap companies.

MER (Annual Fee)
0.33%
#3 lowest in Small Caps
1Y Return
+12.9%
3Y Return (p.a.)
+13.0%
Dividend Yield
4.27%
Trailing 12 months
AUM
$807.9M
Assets under management
Avg Daily Turnover
$1.0M
Avg shares × unit price
Unit Price
$72.20
As at 29 March 2026
Provider
Vanguard
Loading chart…

Strategy

Managed by Vanguard. Follows the MSCI World ex-Australia Small Cap Index, which covers the bottom 14% of market cap in each developed country — companies typically between $300 million and $2 billion in size.

Top Holdings

Key Fact

VISM and VGS together cover the full MSCI World ex-Australia universe. VGS holds approximately 1,400 companies (the top 85% by market cap). VISM holds approximately 4,000 companies (the bottom 15%). Combining them provides coverage of the entire developed world universe.

Suited for

Investors who want to add international small-cap exposure alongside a core position in VGS. VISM covers the companies that VGS specifically excludes — the MSCI World standard index only covers the top 85% of market cap in each country.

Risks

International small-caps are less liquid than large-caps, especially in non-US markets. Currency risk across multiple currencies. Small-caps are more economically sensitive and typically fall further in recessions than large-caps.

ETFCheck Score46/100
Fees (40%)51
Fund Size (25%)45
Liquidity (20%)28
Yield (15%)63
How scores are calculated →
Other Small Caps ETFs
VSO
0.30% MER
56
ISO
0.25% MER
43View all Small Caps ETFs →

Frequently Asked Questions - VISM

What does VISM hold that VGS and other international ETFs miss entirely?+
VISM tracks the MSCI World ex-Australia Small Cap Index, holding over 3,000 international small-cap stocks that are completely absent from large-cap international ETFs like VGS and IWLD. These are companies typically between $300 million and $5 billion in market cap across the US, Europe, Japan, and other developed markets. Adding VISM to a VGS-based portfolio significantly broadens diversification by capturing an asset class that has historically delivered higher long-term returns than large caps, albeit with greater volatility.
How is VISM taxed for Australian investors compared to ASX-listed small-cap ETFs like ISO or VSO?+
VISM's distributions are entirely unfranked since all holdings are international companies paying no Australian corporate tax. This contrasts sharply with ISO and VSO, which pass through partial franking credits from ASX-listed dividends. VISM investors may receive foreign income tax offsets (FITOs) where overseas withholding tax has been deducted, which can offset Australian tax liability. For SMSFs in pension phase, this is a meaningful disadvantage compared to franked domestic ETFs, as unfranked income generates no refundable franking credit from the ATO.
With 3,000+ holdings, does VISM have liquidity issues on the ASX for Australian investors?+
VISM itself trades on the ASX with reasonable liquidity supported by Vanguard's market-making arrangements, so buying and selling units is straightforward for most investors. The underlying holdings are a different matter - individual international small caps can trade with wider spreads and lower volumes. However, because VISM holds over 3,000 stocks, no single illiquid position materially impacts the fund. The 0.33% MER adequately covers the complexity of managing this breadth, and VISM's 10.8% one-year return demonstrates efficient index tracking despite the large holding count.
Should Australian investors use VISM as a core holding or a satellite allocation?+
VISM works best as a satellite allocation of 5-15% within a diversified portfolio, complementing core international holdings like VGS or IWLD. International small caps are more volatile than large caps and can underperform for extended periods, making them unsuitable as a sole international allocation. However, their low correlation with Australian equities and large-cap international stocks provides genuine diversification benefits. For long-term SMSF investors with a 10+ year horizon and tolerance for volatility, VISM adds a return premium that broad market ETFs simply cannot capture.