Key insights
- The article highlights the Vanguard Total World Stock ETF (VT) as a simple and cost-effective way to achieve global equity diversification. While not a direct driver, increased diversification among US investors could slightly reduce domestic market volatility and potentially dampen the impact of US-specific economic news.
Most investors are familiar with the Vanguard S&P 500 ETF (VOO +1.03%) and the Vanguard Total Stock Market ETF (VTI +0.97%). They're two of the most popular and cheapest ways to access the U.S. equity market.
What they may not know is that there's an equally attractive fund that invests in the entire global equity market. The Vanguard Total World Stock ETF (VT +0.90%) holds roughly 10,000 stocks across roughly 40 countries. For worldwide stock market diversification, it may be just about the only ETF you need.