Exchange-traded funds offer a convenient way to invest in big or small groups of companies that interest you. If you expect the economies outside U.S. borders to thrive as a global recovery eventually heats up, the Vanguard FTSE All-World Ex-U.S. ETF
The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The Vanguard ETF's expense ratio -- its annual fee -- is a very low 0.22%. It also sports a dividend yield above 2%.
This ETF has performed reasonably well, but it's also very young, with just three full years on the books. It suffered in 2008, as did most equity investments, but booked strong gains in 2009 and 2010. In this rocky year, it's slightly in the black. As with most investments, of course, we can't expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.
With an ultra-low low turnover rate of 6%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Several of this ETF's components made strong contributions to its performance over the past year. Mobile telecom giant Vodafone
Royal Bank of Canada
Other companies didn't add as much to the ETF's returns last year, but could have an effect in the years to come. Spanish telecom concern Telefonica
The big picture
A well-chosen ETF can grant you instant diversification across any industry or group of companies -- and make investing in and profiting from it that much easier.
ETFs can help you find the way to better investing results. To find some great ETF investing ideas, take a look at The Motley Fool's special free report, " 3 ETFs Set to Soar During the Recovery ."