Vanguard Total World Stock ETF vs FTSE Emerging Markets ETF. Which Global Stock Fund Is the Better Buy??
Compare global diversification with targeted emerging market exposure as you weigh these two popular Vanguard funds for your portfolio.
Overview
The Vanguard Total World Stock ETF (NYSEMKT:VT) provides broad global exposure including developed markets, while Vanguard FTSE Emerging Markets ETF (NYSEMKT:VWO) focuses exclusively on high-growth developing economies with a higher distribution yield.
These two Vanguard funds serve as core building blocks for international equity exposure. While VT covers the entire global investable market including the United States, VWO carves out a specific niche in developing nations. Choosing between them depends on your preference for a global solution versus a targeted emerging markets sleeve.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield based on the closing price of June 26.
Source
Originally published at www.fool.com.