Investing In The World With One ETF (ACWI, VT)

foreign world marketsA simple way to invest and diversify yourself would be to invest in the world.  The following ETF’s cover markets worldwide and invest in several companies within the ETF.  This minimizes your exposure to one company or country, creating a well balanced portfolio in one ETF. reports “The iShares MSCI ACWI Index Fund (ACWI) and Vanguard Total World Stock ETF (VT) are world stock market ETFs with global exposure to equities.  We featured ACWI here on its first day of trading back in March 2008.  It is an excellent product and has captured over $400 million in assets.  VT is slightly smaller but still doing well in the asset race.”

“There are some slight differences between the two.  VT’s expense ratio is 5 basis points less.  It also has exposure to seven more countries than the iShares product.  This is a minor point, however, since the top twenty countries represent approximately 95% of the index tracked for both funds, “Reports

“ACWI is benchmarked to the MSCI All Country World Index, while VT tracks the FTSE All-World Index.  There are 2,416 holdings in the MSCI World Index, while the FTSE All-World has 2,757 components.  One key differential is that the iShares ETF attempts to track the index by using a sampling technique and holding just 702 securities (29%) as opposed to the Vanguard ETF which holds 2,748 securities (99%), “Reports

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