Vanguard Total World Stock ETF

VT

Market cap $67B

It's smart to diversify your portfolio beyond just U.S. stocks. These ETFs will quickly and easily have you invested in hundreds, if not thousands, of international stocks.

The global economic outlook is beginning to look shakier and equity markets have begun to decline. In these types of environments, risk management can protect your portfolio and get you through the tougher times.

The S&P 500 is down 3% year-to-date in 2026. Vanguard Total World Stock Index Fund ETF Shares (NYSEARCA:VT) is down less than 1% over the same period.

There's never a bad time to invest in the United States' economic titans. There are also times when better opportunities lie elsewhere.

Long-term ETF investing should remain simple and passive, avoiding frequent strategy changes and unnecessary complexity. Constantly swapping similar ETFs, chasing themes, or using currency hedging often increases costs and reduces long-term returns. Overlapping ETFs like VT and SPY can unintentionally concentrate risk rather than diversify a portfolio.

These ETFs can help set up your tax-advantaged account.

If you're investing for the next 20 years, focusing on equities to maximize long-term growth potential is the way to go. If constrained to a single ETF, it should focus on diversification and capturing growth opportunities from multiple markets.

With just two ultra-cheap Vanguard ETFs, investors can build a comprehensive stock/bond portfolio. The Vanguard Total World Stock ETF (VT) includes a mix of 65% United States, 25% developed markets, and 10% emerging markets stocks.

ETFs to diversify beyond US stocks. ETFs to diversify beyond US stocks.

ACWX charges a higher expense ratio but offers a larger dividend yield than VT. VT has outperformed ACWX on five-year growth, but ACWX has led over the past year.