And they do so without more risk, relative to international large-cap funds.
Vanguard uses this fund in its target-date and LifeStrategy funds.
Vanguard FTSE All-World ex-US Small-Cap provides exposure to both developed- and emerging-markets small caps, while WisdomTree offers a dividend-focused ETF and a currency-hedged ETF.
Passively managed funds are a viable option thanks to low fees.
Foreign-stock funds and dividend-payers are top destinations for new IRA contributions.
Although a cap-weighted strategy is low-cost, it does make large bets in risky areas.
Some readers carve out specialized emerging-markets stakes, while others are content with the indirect route.