Investors have never had it easier when building a diversified portfolio of global stocks. Market-cap-weighted U.S. and foreign stock funds can each be obtained for less than a dozen basis points each.
But holding separate funds does require a small amount of work. Shares may need to be sold when allocations are rebalanced, which can introduce inefficiencies through trading costs and taxes. Therefore, a total world market fund can be a compelling alternative.
Daniel Sotiroff does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.