Welcome to Leap’s weekly ETF Screener. This week, we’d like to present three ETF options for investors who’d like to have exposures to the global equity market
ETF Screener
Without a doubt, the first one is the SPDR S&P 500 ETF, ticker symbol SPY. It is one of the largest and most heavily-traded ETFs in the world, offering exposure to large-cap U.S. stocks, designed to track performance of the most well known equity benchmark, S&P 500 index. However, few realize that SPY is actually a unit investment trust, which means it doesn't maintain the flexibility to lend out shares or reinvest dividends. Over the long run, those limitations hurt its performance. That’s part of the reason we chose to own some better alternatives in our model portfolio, which can outperform by a few basis points to its bottom line.
SPDR S&P 500 ETF (ticker symbol:SPY)
Vanguard FTSE Developed Markets ETF (ticker symbol: VEA)
The second ETF is theVanguard FTSE Developed Markets ETF, ticker symbol VEA. This ETF offers exposure to developed markets outside of North America, including Western Europe, Japan, and Australia. As such, VEA is a core holding of many long-term portfolios, and can also be used as an efficient tool for overweighting ex-U.S. developed markets. Like many Vanguard funds, this ETF is impressive in both its depth of holdings with nearly 1,000 component securities and cost efficiency with an expense ratio of only 0.07%.
Vanguard FTSE Emerging Markets ETF (ticker symbol: VWO)
The last ETF this week is Vanguard FTSE Emerging Markets ETF, ticker symbol VWO. It has been embraced by investors as an efficient way to establish broad-based exposure to the developing economies of the world. There's a lot to like about the balance of the portfolio: VWO invests in hundreds of stocks across dozens of different emerging markets in all corners of the globe, ensuring that no one market or sector has too significant an impact on performance
In summary, these three funds altogether offer a comprehensive exposure to the global equity market with unrivaled liquidity, which means their bid-ask spreads are always very narrow so investors can move in and out of these funds with ease.
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