3 Great ETFs That Invest Globally
These ETFs are a one-stop shop for global diversification.
Zachary Evens: Both US and international markets have done well so far in 2025, but it was hardly a straight lineup. As more attention gets paid to international markets and the investment opportunities within each, it’s important that long-term investors aren’t putting all their eggs into one country’s basket. A country’s entire stock or bond market can move on a single headline, and it’s impossible to know what the next market-moving headline will be.
With so much uncertainty, not just at home but around the world, there’s seldom been a better case for global diversification, and investing across dozens of countries allows investors to share in the gains of some markets while cushioning the losses from others. These three ETFs diversify across the globe and allow investors to sleep soundly at night knowing they’re not overexposed to one country or one headline.
3 Great ETFs That Invest Globally
- Vanguard Total World Stock ETF VT
- iShares MSCI Global Minimum Volatility Factor ETF ACWV
- JPMorgan International Bond Opportunities ETF JPIB
First up is Vanguard Total World Stock ETF, which trades under the ticker VT. We’ve highlighted this ETF before, but for good reason. It holds almost 10,000 stocks across more than two dozen countries, charging investors just 6 basis points annually to do so. This low fee and unmatched global breadth earn it a Morningstar Medalist Rating of Gold.
This ETF is a snapshot of the global stock market. It tracks the vast FTSE Global All Cap Index, which includes stocks of all sizes in emerging and developed markets. The index is market-cap-weighted, meaning it invests the most in the world’s biggest stocks and the least in the world’s smallest stocks. This is an efficient approach because it captures the market’s collective opinion of each stock’s value and keeps turnover low.
Tilting toward large companies gives US stocks more attention. This has helped performance because huge US tech stocks, like Nvidia NVDA, have enjoyed excellent returns in recent years. But when they falter, stocks from other markets are poised to pick up the slack. Even earlier this year, when US stocks fell, several international markets surged, cushioning this fund’s fall.
The next ETF on the list still delivers global diversification but controls risk a little better than the previously mentioned Vanguard ETF. IShares MSCI Global Minimum Volatility Factor ETF ACWV also invests across more than two dozen countries but aims to limit volatility. It charges 20 basis points annually and earns a Silver Morningstar Medalist Rating.
This index ETF tends to be less volatile than category peers thanks to its defensive portfolio. The index considers stocks’ individual volatility and how their performance interrelates with other holdings. It may underperform from time to time, but this holistic view of volatility and risk ensures its low-volatility focus will not be compromised. This is a sound choice for stock investors wanting risk-controlled exposure to global markets.
The last ETF I’ll note here is JPMorgan International Bond Opportunities ETF. It trades under the ticker JPIB and charges 50-basis points annually. This actively managed ETF is well-suited for risk-conscious bond investors.
The last ETF I’ll note here is JPMorgan International Bond Opportunities ETF. It trades under the ticker JPIB and charges 50 basis points annually. This actively managed ETF is well-suited for risk-conscious bond investors.
J.P. Morgan forms macro views that inform this fund’s sector allocations, and the managers have a solid track record of using those allocations to proactively reduce risk and limit drawdowns during market stress.
The fund invests across several global markets, limiting US exposure to just 20% of the portfolio, whereas a market-value-weighted bond ETF or a market-cap-weighted stock ETF would have a much higher allocation to US securities. Investing globally affords the managers ample opportunities to generate excess returns while still controlling risk, and they’ve done just that, handily beating both the category average and the category index over the last five years.
Investing globally is not without risk, but with so much uncertainty in the world right now, spreading your bets across the globe could be just what the doctor ordered. Each of these three ETFs controls risk differently, but all are sound choices for global investors.
Watch 3 Great New Vanguard ETFs for more from Zachary Evens.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
