A Guide to ETF Securities and Their Investment Options

ETFs offer a wide range of investment options, including stocks, bonds, commodities, and currencies.

With over 7,000 ETFs available globally, investors can choose from a vast array of assets and strategies to suit their needs.

Some ETFs track a specific index, such as the S&P 500, while others focus on a particular sector, like technology or healthcare.

Investors can also choose from ETFs that use alternative investment strategies, like active management or hedging.

ETFs are traded on major stock exchanges, just like individual stocks, making it easy for investors to buy and sell them.

ETFs, or Exchange-Traded Funds, are baskets of securities that are traded on a stock exchange like individual stocks. They allow investors to diversify their portfolios by pooling their money together to invest in a variety of assets.

Each ETF holds a collection of securities, such as stocks, bonds, or commodities, which are designed to track a particular index or sector. For example, an ETF might track the S&P 500 index, which includes the 500 largest publicly traded companies in the US.

ETFs are traded throughout the day on an exchange, allowing investors to buy and sell shares at any time. They also provide transparency, as their holdings are disclosed daily.

ETFs offer a cost-effective way to invest in a variety of assets, often with lower fees compared to actively managed funds. This is because ETFs are passively managed, meaning they don't have a fund manager actively picking stocks or bonds.

There are several types of ETFs to choose from, each with its own unique characteristics.

Passive ETFs aim to replicate the performance of a broader index, such as the S&P 500, by holding a basket of securities that mirror the index.

Actively managed ETFs, on the other hand, have portfolio managers who make decisions about which securities to buy and sell, offering benefits over passive ETFs but charging higher fees.

Bond ETFs provide regular income to investors by tracking the performance of underlying bonds, including government, corporate, and municipal bonds.

Industry or sector ETFs offer diversified exposure to a single industry, such as technology or energy, by tracking a specific index or sector.

Commodity ETFs invest in commodities like crude oil or gold, allowing investors to diversify their portfolios and gain exposure to these assets without physically owning them.

Here are some examples of commodity ETFs:

Inverse and leveraged ETFs are also available, offering investors the opportunity to earn gains from stock declines or return multiples on the return of the underlying investments.

Index funds are a type of ETF that tracks a specific market index, such as the MSCI US Investable Market Consumer Staples 25/50 Index.

Vanguard's Consumer Staples ETF (VDC) is an example of an index fund, tracking the MSCI US Investable Market Consumer Staples 25/50 Index and holding shares of all 104 companies on the index.

Investors buy a share of the fund, which owns the shares of the underlying companies, so there is no transfer of ownership.

ETF share prices are determined throughout the day, unlike mutual funds that trade only once a day after the markets close.

This means that investors can buy or sell ETF shares at any time during the trading day.

The holdings of an index fund are diversified, which limits volatility and provides a stable investment option.

Industry ETFs, such as Vanguard's Consumer Staples ETF, are also used to rotate in and out of sectors during economic cycles.

Passive ETFs aim to replicate the performance of a broader index—either a diversified index such as the S&P 500 or a more targeted sector or trend.

Actively managed ETFs, on the other hand, do not target an index; portfolio managers make decisions about which securities to buy and sell, and they charge higher fees.

Bond ETFs are used to provide regular income to investors, and their distribution depends on the performance of underlying bonds, which may include government, corporate, and state and local bonds, usually called municipal bonds.

Industry or sector ETFs track a single industry or sector, like automotive or energy, and they provide diversified exposure to a single industry, including high performers and new entrants with growth potential.

Commodity ETFs invest in commodities like crude oil or gold, and they can diversify a portfolio. Holding shares in a commodity ETF is cheaper than physical possession of the commodity.

Here's a breakdown of some of the key types of commodity ETFs:

Inverse ETFs earn gains from stock declines without having to short stocks, and they use derivatives to short a stock. They are exchange-traded notes (ETNs) and not true ETFs.

Leveraged ETFs seek to return some multiples (e.g., 2× or 3×) on the return of the underlying investments, and they use debt and derivatives, such as options or futures contracts, to leverage their returns.

Bond ETFs are a type of exchange-traded fund that invests in bonds. They generally have much more market liquidity than individual bonds.

One advantage of bond ETFs is that they offer diversification, allowing you to spread your investments across a range of bond types.

ETFs can be bought and sold at any time during the trading day, giving you the flexibility to react to market movements.

You can buy ETFs through an online brokerage account at their current market price, without any minimum holding periods.

Investors can employ a wide range of trading techniques, such as buying on margin, short selling, and placing limit orders, to take advantage of market opportunities.

You can even place stop-loss orders to limit your losses if the market moves against you.

The most popular ETFs, like those tracking the S&P 500, trade tens of millions of shares per day, making them highly liquid and easy to sell.

However, some ETFs may not trade as frequently, making them more difficult to sell compared to more liquid ones.

ETFs offer several benefits that make them an attractive investment option. They provide exposure to many stocks across various industries, allowing you to diversify your portfolio and spread risk.

ETFs are also more cost-effective than mutual funds, with lower expense ratios and commissions. This means you can save money on fees and invest more in your portfolio.

One of the key benefits of ETFs is their transparency. Their holdings are published online daily, so you can see exactly what you own and make informed investment decisions.

Here are some of the benefits of ETFs:

In fact, 88% of Vanguard ETFs have beaten the returns of their peer-group averages, making them a competitive choice for long-term investing.

ETFs offer a number of benefits, but like any investment, they also have their drawbacks. Here are some of the key pros and cons to consider.

ETFs provide exposure to many stocks across various industries, making them a great way to diversify your portfolio. This can help spread out risk and increase potential returns.

One of the main advantages of ETFs is their low expense ratios and commissions. In fact, many ETFs have fees that are significantly lower than actively managed mutual funds.

ETFs can also be used for risk management through diversification, which can help protect your investments from market downturns. By spreading your money across different asset classes and industries, you can reduce your exposure to any one particular sector.

Another benefit of ETFs is their ability to focus on targeted industries or commodities. This can be a great way to invest in areas that you're particularly interested in or have expertise in.

However, it's worth noting that actively managed ETFs often have higher fees than their index fund counterparts. This can eat into your returns over time and reduce your overall profitability.

Additionally, single-industry-focused ETFs can limit diversification, which can increase your risk exposure. This can be a problem if you're heavily invested in a particular sector and it experiences a downturn.

Here are some key pros and cons of ETFs in a nutshell:

Investing in Vanguard offers numerous benefits. Vanguard ETFs are tax-efficient, with 81% of all Vanguard ETFs having no taxable capital gains distributions in the past 5 years.

One of the key advantages of Vanguard ETFs is their low expense ratios. Vanguard's average ETF expense ratio is 75% less than the industry average.

Vanguard ETFs provide access to many companies or investments in a single trade, removing single stock risk. They also offer diversification, which can help lower risk.

Here are some key benefits of investing in Vanguard:

Vanguard ETFs are also transparent, with most holdings available daily. This transparency can help investors make more informed investment decisions.

ETFs carry certain risks that investors should be aware of before making a decision to invest. These risks include market fluctuations, which can cause the value of the ETF's shares to go up or down depending on the performance of the underlying stocks in its portfolio.

Inflation can also erode the value of the fund's assets over time, affecting the value of the ETF's shares. Credit risk is another concern, as an ETF may be exposed to financial difficulties or bankruptcy of the companies in its portfolio.

Liquidity risk is also a factor, as there may be difficulties in buying or selling shares of an ETF when you want to, due to market conditions or other factors.

Some market participants believe that the growing popularity of ETFs may have contributed to equity price appreciation in some emerging economies, and warn that leverage embedded in ETFs could pose financial stability risks if equity prices were to decline for a protracted period.

ETFs can be used to manipulate market prices, such as in conjunction with short selling, and have been linked to significant price volatility in the past. For example, during the 2010 flash crash, prices of ETFs and other stocks and options became volatile, with trading markets spiking and bids falling as low as a penny a share.

Here are some of the key risks associated with ETFs:

ETFs can be affected by market fluctuations, which means their value can go up or down depending on the performance of the underlying stocks in their portfolio.

Market risk is a significant consideration for investors, as it can result in a decline in the value of the ETF's shares.

Inflation can also erode the value of the fund's assets over time, making it essential for investors to consider the potential impact of inflation on their investments.

Credit risk is another factor to consider, as an ETF may be exposed to credit risk if one or more of the companies in its portfolio experiences financial difficulties or goes bankrupt.

Liquidity risk is also a concern, as it may be difficult to buy or sell shares of an ETF when you want to, due to market conditions or other factors.

Here are some specific risks associated with ETFs:

Costs and fees are a crucial aspect of investing in ETFs and mutual funds.

The expense ratio, which reflects the costs of portfolio management, administration, and other expenses, can make a significant difference in your returns. According to Vanguard, their average ETF expense ratio is 77% less than the industry average, at 0.05% compared to the industry average of 0.22%.

ETFs generally have lower annual fees than mutual funds, ranging from 0.02% to 1% of the investment value. This is because ETFs are passively managed, meaning they don't have to buy and sell securities and maintain cash reserves like mutual funds do.

In contrast, mutual funds often have higher fees due to marketing, distribution, and accounting expenses, also known as 12b-1 fees. Stockbrokers may also charge different commissions for buying and selling ETFs and mutual funds.

Transaction fees, such as the $8 per $1 million in transaction proceeds paid to the SEC under section 31 of the Securities Exchange Act of 1934, can also add to your costs. However, some mutual funds can be bought commission-free from the issuer.

Here's a breakdown of the fees associated with a specific ETF:

By understanding these costs and fees, you can make informed decisions about your investments and keep more of your returns.

Most ETFs, like Vanguard ETFs, offer commission-free trading, but it's essential to note that not all ETFs are created equal.

Some mutual funds can be bought commission-free from the issuer, but many others charge front-end or back-end loads.

ETFs are generally cheaper to operate, which is one reason they're often commission-free.

Sales of ETFs in the United States are subject to transaction fees, currently $8 per $1 million in transaction proceeds.

You'll pay no more than 0.02% of the investment value to upwards of 1% of the investment value in annual expense ratios for both ETFs and mutual funds.

ETFs can be more attractive tax-wise than mutual funds for transactions made in taxable accounts in the US.

In the US, mutual fund shareholders who hold the fund in taxable accounts must pay capital gains taxes on their share of the gain when the fund sells appreciated shares to meet investor redemptions.

ETF investors generally only realize capital gains when they sell their own shares for a gain.

Vanguard ETFs have had no taxable capital gains distributions for 81% of all Vanguard ETFs in the past 5 years.

This is a significant advantage, especially for investors who want to minimize their tax liabilities.

ETFs offered by Vanguard are actually a different share class of its mutual funds and do not stand on their own, but they generally do not have any adverse tax issues.

The Morningstar Rating is a widely recognized system for evaluating mutual funds and exchange-traded funds (ETFs). It assigns a rating of one to five stars based on a fund's past performance.

A fund with a 5-star rating has outperformed its peers over the past three years, on average. A 4-star rating indicates a fund has performed well, but not as well as the top-rated funds. A 3-star rating suggests a fund has been average, a 2-star rating indicates a fund has underperformed, and a 1-star rating means a fund has been among the worst performers.

Keep in mind that past performance is not a guarantee of future results.

ETFs can significantly affect the price of commodities through their purchases and sales. This can have a ripple effect on the entire market.

Some market participants believe that the growing popularity of ETFs has contributed to equity price appreciation in emerging economies. This warning highlights the potential financial stability risks if equity prices were to decline.

ETFs have been used to manipulate market prices, as seen in the 2007-2009 United States bear market. This was partly due to short selling.

Regulations were put in place after the 2010 flash crash, but they proved inadequate. The crash was characterized by volatile prices, with trading markets spiking and bids falling as low as a penny a share.

The 2015 flash crash put ETFs under greater scrutiny from regulators and investors. Analysts noted that ETFs are governed by outdated legislation.

Investing in ETFs is a great way to diversify your portfolio and achieve your investment goals. You can choose ETFs that fit your needs by using an investor questionnaire to find the right asset mix.

Diversification is key, but it doesn't ensure a profit or protect against a loss. All investing carries risk, including the possible loss of your money.

To get started, you should choose ETFs that fit your investment goals and risk tolerance, and help you achieve the desired asset mix in your portfolio.

Investing in ETFs can be a great way to diversify your portfolio, and it's surprisingly affordable. You can buy a fractional share of a Vanguard ETF for as little as $1, making it accessible to investors with smaller budgets.

One of the main benefits of ETFs is their low costs. You can trade shares live during the trading day, which can be a big advantage for investors who want to stay on top of the market.

Investing in ETFs is simpler than you might think. Vanguard ETFs, for example, offer a convenient and straightforward way to invest in a variety of assets.

At Vanguard, you can help your money grow by investing in ETFs, which offer benefits you may not get from trading individual stocks or bonds on your own.

Investing in ETFs can be a smart move, especially if you're new to investing.

Vanguard is a great place to start, as they offer a wide range of ETFs that can help you diversify your portfolio.

With ETFs, you can spread your risk and potentially earn higher returns over the long term.

Investing Solo can be a great way to take control of your finances, and with the right information, you can start your DIY investing journey on the right foot.

Investing in ETFs is a popular choice for solo investors because it offers diversification and flexibility. Many ETFs have low fees, making them an attractive option for those looking to save money on investment costs.

Before you start investing, it's essential to understand the key information you need to get started. Check out key information you can use as you begin your successful DIY investing journey.

As a solo investor, you'll want to consider your investment goals and risk tolerance. This will help you determine the right investment strategy for your needs.

Investing in ETFs can be a great way to get started with DIY investing, and with the right information, you can set yourself up for success.

Dividend reinvestment plans (DRIPs) are an option for automatically buying more fractional shares of the fund using your dividends.

You can choose from a variety of products to select the one that best fits your needs.

With a DRIP, you can make the most of your dividend earnings without having to lift a finger.

ETFs are often compared to index mutual funds, but they have key differences. An index mutual fund is a type of mutual fund that tracks an index.

One notable difference is that ETFs are more cost-effective and liquid than index mutual funds. You can also buy an ETF throughout the trading day, which can be beneficial for investors who want to make quick trades.

Investing on your own can be a great way to take control of your finances, and ETFs can be a good option for DIY investors.

ETF issuers are subject to strict regulations to ensure they provide accurate and transparent information to investors.

The Securities and Exchange Commission (SEC) requires ETF issuers to register their funds, disclose their holdings, and adhere to specific rules regarding trading and custody.

ETF issuers must also maintain accurate and up-to-date records of their holdings, which are made available to investors through regular disclosures.

Notable issuers of ETFs are the companies behind the creation and distribution of these investment products. AdvisorShares is one notable issuer, majority owned by Fund.com, and they specialize in actively managed ETFs.

One of the most well-known issuers is BlackRock, which issues iShares, a popular brand of ETFs. Another notable issuer is Charles Schwab Corporation, which also issues its own line of ETFs.

If you're looking for ETFs with a focus on disruptive innovation, ARK Investment Management is a great choice, as they issue actively managed ETFs that invest in companies involved in this space. Deutsche Bank is also worth mentioning, as they issue Xtrackers ETFs and manage PowerShares DB commodity- and currency-based ETFs.

Other notable issuers include Banco Itau, which issues ETFs in Brazil, and BetaShares, which issues ETFs in Australia. Lyxor Asset Management issues Lyxor ETFs in France, and ProShares issues a variety of ETFs, including leveraged and inverse ETFs for the NASDAQ and S&P 500.

Here are some notable issuers of ETFs, grouped by region:

Dimensional Fund Advisors is also a notable issuer, as they specialize in factor-based ETFs. ETF Securities issues ETFs primarily in Australia, and Franklin Templeton Investments issues LibertyShares ETFs. Global X Funds and Guggenheim Partners are also notable issuers, with a focus on specialty ETFs.

United States Commodity Funds issues commodity ETFs, such as the United States Oil Fund, and WisdomTree Investments issues specialty ETFs. State Street Global Advisors issues SPDRs, and The Vanguard Group issues Vanguard ETFs, formerly known as VIPERs.

ETFs are a type of security that offers diversification through multiple holdings. They can be traded intraday and have automatic investment options available.

Investment minimums for Vanguard ETFs are just $1, making them accessible to a wide range of investors. For other ETFs, the minimum investment is at share price.

Leveraged ETFs, on the other hand, use derivatives to aim for a daily return that's a multiple of or opposite of an index's performance. This can be a high-risk, high-reward strategy, but it also comes with significant costs, especially in volatile markets.

Here's a comparison of some key features of ETFs and Leveraged ETFs:

ETF issuers like Vanguard offer both index and active ETFs, giving investors a range of options to choose from.

Business Involvement metrics can help investors gain a more comprehensive view of specific activities in which a fund may be exposed through its investments.

Business Involvement metrics are not indicative of a fund’s investment objective, and do not change a fund’s investment objective or constrain the fund’s investable universe.

BlackRock uses data from MSCI ESG Research to calculate Business Involvement metrics, which provides a profile of each company’s specific business involvement.

This data is then summed up and translated to a fund's market value exposure to listed Business Involvement areas.

Business Involvement metrics are designed only to identify companies where MSCI has conducted research and identified as having involvement in the covered activity.

It's possible there is additional involvement in these covered activities where MSCI does not have coverage.

Business Involvement metrics are only displayed if at least 1% of the fund’s gross weight includes securities covered by MSCI ESG Research.

ETFs can be used to gain exposure to specific markets, such as the US stock market.

The SPDR S&P 500 ETF Trust is an example of an ETF that tracks the S&P 500 index, which includes 500 of the largest publicly traded companies in the US.

This ETF provides broad diversification and can be a low-cost way to invest in the US stock market.

The iShares MSCI EAFE ETF, on the other hand, tracks the performance of developed markets outside of the US and Canada, providing investors with a way to diversify their portfolios.

Investors can also use ETFs to gain exposure to emerging markets, such as the iShares MSCI Emerging Markets ETF.

Actively Managed Funds are a type of ETF that doesn't just track a market index, but actively tries to beat it.

The manager of an actively managed ETF can trade securities daily, or even more frequently, which can be a double-edged sword. This means the portfolio reports can reveal the manager's trading strategy, making it vulnerable to front running. Some actively managed equity ETFs address this issue by trading only weekly or monthly.

The JPMorgan Equity Premium Income ETF (JEPI) is a notable example of an actively managed ETF, with an annual fee of 0.35%. Another example is the Pimco Enhanced Short Duration ETF (MINT), which also charges 0.36% in annual fees.

Currency is a fascinating area within the world of ETFs. Currency ETFs, for instance, allow investors to bet on the value of foreign currencies or a group of currencies. They're issued by reputable companies like Invesco and Deutsche Bank. This way, investors can profit from changes in currency exchange rates.

In the world of cryptocurrency, ETFs have become increasingly popular. Cryptocurrency ETFs invest in cryptocurrencies like Bitcoin and Ethereum, or a basket of different cryptocurrencies.

Ethereum is gaining significant traction in the cryptocurrency market, particularly in the context of ETFs. For the first time, Ethereum ETFs have surpassed Bitcoin ETFs in daily inflows, with a historic record of $332.9 million on November 29, 2024.

There are two types of crypto ETFs: spot and future-based. Spot crypto ETFs invest directly in cryptocurrencies, while future-based crypto ETFs invest in crypto futures contracts.

Ethereum's open interest has reached a historic peak of $24.08 billion, and exchange reserves have increased by 750,000 ETH in one month, reducing selling pressure. This growth reflects a diversification of portfolios and an increased perception of Ethereum's utility, particularly in DeFi and NFT innovations.

The United Kingdom has a thriving ETF market, with one of the largest and most diverse in Europe. The London Stock Exchange (LSE) offers a wide range of ETFs that track various asset classes and markets.

You can buy shares in U.S.-listed companies from the U.K., but unfortunately, you're not allowed to purchase U.S.-listed ETFs in the U.K. due to local and European regulations.

Some U.K.-based ETFs track U.S. markets, and they have 'UCITS' in their name, which means the fund is fully regulated in the U.K. and allowed to track U.S. investments.

The HSBC FTSE UCITS ETF is a popular option for broad-based exposure to U.K. equities, tracking the FTSE 100 index, which consists of the 100 largest publicly listed companies in the country. It has an ongoing charge of 0.07% and a dividend yield of 3.62% as of January 2024.

The European market has seen tremendous growth in ETF adoption since the first European ETF came on the market in 2000.

At the end of March 2019, the asset under management in the European industry stood at €760bn, a significant increase from €100bn at the end of 2008.

ETFs now account for 8.6% of total AUM in investment funds in Europe, up from 5.5% five years earlier.

The use of ETFs has also evolved over time, with EDHEC surveys showing an increasing propagation of ETF adoption over the years.

In 2019, 91% of survey respondents used ETFs for equities and sectors, a significant increase from 45% and 83% in 2006, respectively.

Commodities and corporate bonds also saw a substantial increase in ETF adoption, with 68% of respondents using them in 2019, compared to 6% and 15% in 2006.

Investors have a high rate of satisfaction with ETFs, especially for traditional asset classes, with 95% satisfaction for both equities and government bond assets in 2019.

Europe's ETF market is expected to see significant growth in the coming years, with a high percentage of investors planning to increase their use of ETFs in the future.

46% of investors plan to increase their use of ETFs, citing a desire to replace active managers with ETFs and lower costs.

Investors are especially demanding further developments of ETF products in the areas of ethical, socially responsible investing, and smart beta equity and factor indices.

ESG ETFs enjoyed growth of 50% in 2018, reaching €9.95bn with the launch of 36 new products.

31% of investors require additional ETF products based on sustainable investment, highlighting the need for more sustainable options.

Investors are also demanding ETFs related to advanced forms of equity indices, such as multi-factor and smart beta indices.

The history of gold exchange-traded funds (ETFs) is a fascinating story that spans several decades.

The first gold exchange-traded product was Central Fund of Canada, a closed-end fund founded in 1961.

Central Fund of Canada amended its articles of incorporation in 1983 to provide investors with a product for ownership of gold and silver bullion.

It has been listed on the Toronto Stock Exchange since 1966 and the American Stock Exchange since 1986.

The idea of a gold ETF was first conceptualized by Benchmark Asset Management Company Private Ltd in India, which filed a proposal with the Securities and Exchange Board of India in May 2002.

Delays in obtaining regulatory approval pushed the launch of the first gold ETF to March 2007.

The first gold exchange-traded fund was Gold Bullion Securities launched on the ASX in 2003.

The first silver exchange-traded fund was iShares Silver Trust launched on the NYSE in 2006.

SPDR Gold Shares, a commodity ETF, is in the top 10 largest ETFs by assets under management.

Actively managed ETFs are a type of ETF that employs an active management strategy, where the manager executes a specific trading strategy instead of replicating the performance of a stock market index.

The securities held by these funds are typically posted on their websites daily, or quarterly in the case of active non-transparent ETFs. This transparency can pose a risk, as it allows individuals to engage in front running by exploiting the manager's trading strategy.

Some actively managed equity ETFs mitigate this risk by trading only weekly or monthly.

Thematic ETFs offer a unique way to invest in specific areas of the market. You can focus on themes such as disruptive technologies, climate change, or shifting consumer behaviors.

Thematic ETFs can be both Index ETFs and actively managed ETFs. They track an index or are actively managed to focus on a particular theme. This allows you to invest in areas that align with your values or interests.

Some examples of thematic ETFs include those focused on electric vehicles, the gig economy, e-commerce, or clean energy. These ETFs provide a way to invest in emerging trends and technologies.

By investing in thematic ETFs, you can gain exposure to specific areas of the market that may not be easily accessible through traditional investments.

Leveraged Securities are a type of investment that can amplify your returns, but they also come with significant risks.

Leveraged ETFs, for example, use financial engineering techniques to achieve a daily return that's a multiple of an index, like the S&P 500. They can produce 3x the daily result of investing in the S&P 500, or shorting it. This is done through equity swaps, derivatives, futures contracts, and rebalancing.

The issuers of these ETFs, like Direxion, use various techniques to maintain a fixed leverage ratio, which can lead to trading losses when markets are volatile. This is known as volatility drag or volatility tax. Leveraged ETFs effectively increase exposure ahead of a losing session and decrease exposure ahead of a winning session.

Leverage has a dual nature, it can result in substantial profits, but it also carries the risk of substantial losses. The rebalancing problem is that the fund manager incurs trading losses because they need to buy when the index goes up and sell when the index goes down.

Vanguard ETF Strategies offer a range of benefits for investors, including low costs and broad diversification.

Vanguard's Total Stock Market ETF (VTI) tracks the CRSP US Total Market Index, covering over 3,000 stocks.

With a low expense ratio of 0.04%, VTI provides a cost-effective way to invest in the US stock market.

Investors can also use Vanguard's ETFs to implement a core-satellite strategy, where a core portfolio of low-cost ETFs is supplemented by actively managed funds or individual stocks.

For example, a core portfolio of 70% VTI and 30% VEU (Vanguard FTSE Developed Markets ETF) can provide a broad and diversified exposure to global markets.