What is VWRL ETF?
The VWRL ETF tracks the FTSE All-World ex-US Index, which consists of over 3,500 stocks from developed and emerging markets around the world, excluding the United States. The index is market-capitalization weighted, meaning that the larger and more valuable companies have a greater impact on the performance of the fund.
Benefits of VWRL
One of the key benefits of the VWRL ETF is its diversification. By investing in such a wide range of companies across various sectors and countries, the fund helps to reduce risk and provide stability to an investment portfolio. This is especially important in today's volatile market environment, where the economic and political landscape is constantly changing.
The VWRL ETF is suitable for long-term investors who are looking to build a diversified portfolio and achieve long-term growth. The fund is designed to be a core holding for investors, providing broad exposure to global equities without the need for individual stock picking.
One thing to keep in mind is that the VWRL ETF does have a higher expense ratio compared to some other global funds. This is because it is actively managed by Vanguard, which incurs higher costs than a passively managed fund. However, the expense ratio is still relatively low compared to the industry average, and many investors believe that the benefits of active management outweigh the higher fees.
In summary, the VWRL ETF is a well-diversified and cost-effective way for European investors to gain exposure to global equities. While it may not be suitable for all investors, it can be a useful addition to a long-term investment portfolio. As with any investment, it is important to carefully consider your investment goals and risk tolerance before making a decision.
What are VWRL ETF alternatives?
There are many alternatives to the VWRL ETF for investors who are looking for global exposure in their investment portfolios. Some options to consider include:
- VT (Vanguard Total World Stock ETF): 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. It is passively managed and has a lower expense ratio than the VWRL ETF.
- iShares MSCI ACWI ETF (ACWI): This ETF tracks the MSCI ACWI Index, which includes stocks from developed and emerging markets around the world. It is passively managed and has a lower expense ratio than the VWRL ETF.
- BlackRock Global Allocation Fund (MDLOX): This mutual fund is actively managed and seeks to achieve long-term growth by investing in a diversified portfolio of stocks, bonds, and other securities from around the world.
- T. Rowe Price Global Equity Fund (PRITX): This mutual fund is actively managed and seeks to achieve long-term growth by investing in a diversified portfolio of global stocks.
- Fidelity Global Equity Income Fund (FGRIX): This mutual fund is actively managed and seeks to achieve a combination of income and long-term growth by investing in a diversified portfolio of global stocks with a focus on dividend-paying companies.
It is important to note that these are just a few examples, and there are many other options available to investors such as the VUKE ETF, VWRA ETF and the VUSA ETF to name a few more. It is always important to carefully consider your investment goals and risk tolerance before making a decision.
To help you with the decision making process, you can read our piece on the pros and cons for ETF investment.
