ETF Specialist

An Outstanding Global-Stock Fund

Daniel Sotiroff

World-stock funds provide an easy way to access a globally diversified portfolio without the additional complexity that comes with holding distinct U.S. and non-U.S. stock funds.  Vanguard Total World Stock ETF (VT) is one of the best global-stock funds available. It invests in thousands of stocks of all sizes in every major market. The small-cap firms in its portfolio provide cleaner access to local economies and help diversify its large-cap multinational holdings. This is one of the broadest funds in the world large-stock Morningstar Category, and its ultralow fee underscores its Morningstar Analyst Rating of Silver.

VT tracks the market-cap-weighted FTSE Global All Cap Index. It holds more than 7,500 names, while its 10 largest holdings represent only 8% of assets. By comparison, the average fund in the category holds fewer than 200 stocks and has 39% of assets in its top 10.

Daniel Sotiroff does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.