What is VWRA ETF?

The VWRA ETF, also known as the Vanguard All-World Index ETF, is a popular choice for investors looking to gain broad-based exposure to the global stock market. The ETF tracks the FTSE All-World Index, which includes large- and mid-cap stocks from developed and emerging markets around the world. This makes the VWRA ETF a convenient one-stop-shop for investors looking to diversify their portfolio across the global market.

Benefits of VWRA

One of the main benefits of investing in the VWRA ETF is its low expense ratio. At just 0.25% per year, the ETF has one of the lowest expense ratios among all-world index funds, making it an economical choice for long-term investors. The ETF is also highly diversified, with over 3,600 holdings as of 2021, which helps to reduce risk and provide a more stable investment. In terms of performance, the VWRA ETF has historically performed in line with the global stock market. Over the past decade, the ETF has delivered an annualized return of around 9%, which is similar to the return of the MSCI All-Country World Index. The ETF has also exhibited relatively low volatility compared to actively managed funds, making it a suitable option for risk-averse investors.

Downsides of VWRA

One potential downside of the VWRA ETF is that it is heavily weighted towards the United States, with over 50% of its holdings coming from US-based companies. This means that the performance of the ETF is highly correlated with the performance of the US stock market, which may not be desirable for investors looking to diversify their portfolio.

Overall, the VWRA ETF is a solid choice for investors looking for a convenient and low-cost way to gain broad-based exposure to the global stock market. While it may be heavily weighted towards the US, its diversification and low expense ratio make it a worthy addition to any portfolio.

What are VWRA ETF alternatives?

  • iShares MSCI ACWI ETF (ACWI): This ETF tracks the MSCI All-Country World Index, which includes large- and mid-cap stocks from developed and emerging markets around the world. The expense ratio for the ETF is slightly higher than the VWRA ETF at 0.35%, but it is still relatively low compared to other global index funds.
  • Schwab Global Equity ETF (SCHF): This ETF tracks the FTSE Global All Cap Index, which includes large-, mid-, and small-cap stocks from developed and emerging markets around the world. The expense ratio for the ETF is 0.06%, making it one of the lowest-cost options among global index funds.
  • Vanguard FTSE All-World ex-US ETF (VEU): This ETF tracks the FTSE All-World ex US Index, which includes large- and mid-cap stocks from developed and emerging markets outside of the United States. The expense ratio for the ETF is 0.12%, making it a low-cost option for investors looking to diversify their portfolio beyond the US.
  • Vanguard Total International Stock ETF (VXUS): This ETF tracks the FTSE Global All Cap ex US Index, which includes large-, mid-, and small-cap stocks from developed and emerging markets outside of the United States. The expense ratio for the ETF is 0.11%, making it a competitively priced option for international diversification.

It's worth noting that these ETFs all have different indexes that they track, so their holdings and sector weightings may vary. As with any investment, it's important to carefully research and compare your options before making a decision.

VWRA ETF share price