Investing in the Vanguard Total World Stock Index Fund (VTWAX)

Investing in the Vanguard Total World Stock Index Fund (VTWAX) Investors who are looking to diversify their portfolios may want to consider investing in the Vanguard Total World Stock Index Fund (VTWAX), a no-load mutual fund that provides maximum diversification by investing in global stock markets. VTWAX is a good option for investors who are just trying to get started in investing, as it requires no slicing and dicing of markets or fretting over allocations.

VTWAX is a global stock index fund that is designed to provide broad exposure to the global stock markets. It invests in both developed and emerging markets, including the US, Europe, Japan, and emerging markets. The fund tracks the FTSE Global All Cap Index, a broad-based index that covers more than 7,000 stocks from around the world.

The main benefit of VTWAX is its simplicity. There is no need to worry about market allocations or sector weightings, as the fund is designed to provide broad exposure to the global stock markets. The fund also has a low expense ratio of 0.10%, making it one of the most cost-effective ways to invest in the global markets.

In terms of performance, VTWAX has been a solid choice for investors over the long term. The fund has returned an average of 8.9% per year over the 10 years ending in November 2020. This is within Vanguard's stated performance objectives of 8-10% over the long term.

In terms of risks, VTWAX has a 4-star risk rating from Morningstar, indicating that it is a relatively low-risk fund. The fund is also relatively well diversified, with exposure to more than 7,000 stocks from around the world.

Finally, VTWAX is a good choice for investors who are looking for an all-in-one solution for global investing. With this fund, you get broad exposure to the global markets without having to worry about sector allocations or stock selection.