Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you'd like to add more global reach to your portfolio in order to diversify geographically, the Vanguard FTSE All-World Ex-U.S. ETF
ETFs often sport lower expense ratios than their mutual fund cousins. The global ETF's expense ratio -- its annual fee -- is a very low 0.18%. (Vanguard is known for its low fees.) It recently yielded 3.35%, as well, which is an extra bonus.
This ETF has performed reasonably well, outperforming the world market over the past three and five years. 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 a low turnover rate of 8%, this fund isn't frantically and frequently rejiggering its holdings, as many funds do.
What's in it?
Plenty of global companies had strong performances over the past year. UK-based telecom titan Vodafone
Other companies didn't do as well last year, but could see their fortunes change in the coming years. Telecom giant Telefonica
Meanwhile, in the energy arena, France-based Total
Then there's BP
The big picture
It's always good to diversify your holdings geographically, so that you're not at the mercy of any single region's economy. A well-chosen ETF can help you with that.
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Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, holds no position in any company mentioned. Click here to see her holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Total and Vodafone. The Motley Fool has a disclosure policy.