One Fund for Global Diversification

The Vanguard Total World Stock Index Fund is a great choice for anyone who wants a simple portfolio that is fully diversified across the world stock market. It owns stock in almost 8,000 companies from the United States, developed foreign markets, and emerging markets.

If I had not already bought the total US and total International stock index funds separately I would have definitely considered this fund. I think one big advantage of owning just a single stock fund is that you don’t have to worry about what proportion you should own each individual fund. You can just contribute money to this fund then forget about it. Also there is no rebalancing between funds.

This fund owns small, medium, and large cap stocks but is mostly made up of large caps. At the time of writing this article about 55% of the Total World Stock Index Fund is made up of stocks from the United States, 22% from Europe,  20% from greater Asia, and the rest from other regions such as the Americas and the Middle East. It is roughly 92% Developed Markets and 8% Emerging Markets.

This fund along with a total bond market index fund can be used to create a great portfolio that will guarantee your fair share of market returns.


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