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The Only 5 ETFs You’ll Ever Need

Beginning investors can start with these 5 basic ETFs

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ETFs to Buy: Vanguard Total International Stock Market (VXUS)

etfs-to-buy-vxusVanguard Total International Stock Market (VXUS) is the global peer to Vanguard’s domestic ETF.

The ETF is geared to track the performance of the FTSE Global All Cap ex-US Index. Because you are already covered with domestic equities, this gives you exposure to the rest of the world.

Geographically, it is led by 16% exposure to the UK, 15.6% to Japan and 7.1% in Canada, but it also has emerging-market exposure, representing almost 17% of the VXUS’s holdings. As with small- and midcaps in the domestic portfolio, the expectation with VXUS is that emerging markets will provide better returns than the developed nations. However, those bigger, more sturdy companies — such as Nestle (NSRGY) and Roche (RHHBY) — help power a 2.85% dividend.

VXUS’s expense ratio is also very low for the exposure it provides, at just 0.16%.

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