Best Global ETFs

1. Vanguard FTSE All-World UCITS ETF (VFPEF)

The Vanguard FTSE All-World UCITS ETF is designed to mimic the performance of the FTSE All-World Index. The FTSE All-World Index comprises a basket of international stocks listed in developed and emerging markets. The equities involved are described as “large and mid-sized” companies, according to Vanguard’s key investor information sheet.

The index consists of around 3,900 stocks in almost 50 nations worldwide. It covers over 95% of the global investable market capitalisation. The assets under passive management are valued at £8.05 billion.

Had you invested in this international ETF a decade ago with £10,000, it would have yielded a return-on-investment worth well over 150%.

• Fund size: £8.05 billion
• Annual charges: 0.22%
• Dividend yield: 1.97%
• Best suited to: Retail investors looking to get exposure to the FTSE All-World Index, which includes some of the world’s most established corporations and emerging companies with immense growth potential.

2. MSCI All-Country World Index (ACWI)

The All-Country World Index (ACWI) is described as the “flagship global equity index” of MSCI. It’s designed to track the performance of many of the world’s leading mid-cap and large-cap stocks. The fund includes equities listed in 23 developed nations and 24 emerging nations. According to MSCI, it includes over 2,933 equities spread across 11 industries.

In terms of the allocation of assets within the All-Country World Index, MSCI adds constituents from the developed markets of North America, Europe, the Middle East, and the Pacific region. It also adds constituents from emerging markets in South America, Eastern Europe, Africa, and Asia.

If you had invested in the MSCI ACWI ETF from its inception, you’d currently be sitting on a total return on investment worth almost 145%.

• Fund size: £13.4 billion
• Annual charges: 0.32%
• Dividend yield: 1.65%
• Best suited to: Retail investors keen to diversify their portfolio on a global scale whilst driving sustainable, long-term growth.

3. MSCI World UCITS ETF (IIREF)

The MSCI World UCITS ETF tracks the MSCI World Index, featuring equities within the global stock market from up to 23 developed nations around the world. It is a long-only fund, which means that it only accepts long (buy) positions from retail investors.

This fund was listed for the first time in April 2009, and it’s not only one of the oldest international ETFs, but it also happens to be one of the most cost-effective. Its annual management fees are cheaper than the MSCI All-Country World Index and the Vanguard FTSE All-World UCITS ETF.

The MSCI World UCITS ETF has posted a return of 328.69% since April 2009. That’s compared with the 336.23% return of the MSCI World Index itself.

• Fund size: £2.59 billion
• Annual charges: 0.19%
• Dividend yield: 0%
• Best suited to: Retail investors looking for a low-fee global ETF with exposure to approximately 1,507 equities in developed nations.

4. Vanguard FTSE All-World High Dividend Yield UCITS ETF (VNGGF)

The Vanguard FTSE All-World High Dividend Yield exchange traded fund aims to mimic the benchmark performance of the FTSE All-World High Dividend Yield index, consisting of equities that deliver dividend yields consistently above the market average. It excludes real estate trusts, but it does include high yielding stocks in emerging markets as well as developed markets.

If you’re wondering which equities are considered high dividend payers, those carrying the greatest weighting in this global ETF include Exxon Mobil, Johnson & Johnson, JP Morgan Chase & Co., Procter & Gamble, Nestle, and Chevron.

Almost a quarter (24.49%) of the equities within this fund are from the financial sector. More than two-fifths (42.3%) of constituents are US-based, although plenty of assets are listed in Japan, the UK, Switzerland, and many more.

• Fund size: £3.2 billion
• Annual charges: 0.29%
• Dividend yield: 3.98%
• Best suited to: Retail investors looking for a diversified international ETF that pays regular and above average dividends.

5. iShares Core MSCI Pacific ex-Japan UCITS ETF (CPXJ.L)

If you’d like to get more exposure to well-established, multinational equities in the Asia Pacific region, this is one of the more exotic global ETFs to consider. As the name suggests, the iShares Core MSCI Pacific ex-Japan ETF excludes Japanese stocks and instead focuses on nurturing a basket of equities from elsewhere in the international markets like Australia, Singapore, New Zealand, and Hong Kong.

This international ETF launched in January 2010. It happens to be one of the more expensive global funds on this list, but that’s largely due to the ‘exotic’ nature of having a basket of Pacific equities managed on your behalf.

Had you chosen to invest in this fund from the outset, you’d be looking at a total return on investment of 76.40%. That’s not a bad performance considering the benchmark index returned only a little bit more (83.07%).

• Fund size: £153.74 million
• Annual charges: 0.60%
• Dividend yield: 4.06%
• Best suited to: Retail investors looking for regional exposure to the Asia Pacific region as a potential hedge to investments in developed western markets.

6. SPDR MSCI World Financials UCITS ETF (FNCW.L)

This international ETF is aimed at those wanting to track the performance of the leading equities in the global financial sector. The SPDR MSCI World Financials ETF is a basket exclusively of financial stocks in developed markets around the world. The fund is rated six out of seven on the risk-reward profile within its key investor information, which means there is a potential for higher-than-average returns and similarly higher than average volatility.

There is no dividend yield with this global ETF, as all dividends are accumulating, helping to add to the overall value of the fund.

• Fund size: £153.74 million
• Annual charges: 0.60%
• Dividend yield: 0%
• Best suited to: Retail investors looking for regional exposure to the Asia Pacific region as a potential hedge to investments in developed western markets.

7. iShares Global Government Bond UCITS ETF (IIXFF)

The Global Government Bond ETF from iShares is designed to track the returns made by the FTSE G7 Government Bond index. Essentially, this index includes a basket of bonds issued or guaranteed by all seven governments within the G7 – the UK, USA, France, Germany, Italy, Canada, and Japan.

This global ETF is typically considered a safe option, as local currency bonds of developed nations offer some of the most secure returns available. Some investors may look to this type of international ETF as a convenient hedge against riskier investments in equities.

This bond generally performs well when inflation is low and gilt yield prices are lower. The issue of rampant inflation since Covid-19 and the war in Ukraine has hit this particularly hard, falling 16.83% in the last three years. Since its inception in March 2009, it has still delivered a return on investment of 11.67% – a solid if unspectacular gain.

• Fund size: £1.93 billion
• Annual charges: 0.20%
• Dividend yield: 1.02%
• Best suited to: Retail investors seeking a global ETF that’s historically generated small, incremental gains, ideal for long-term investing.

8. Vanguard Global Aggregate Bond UCITS ETF (VGRSF)

This global ETF is an accumulating fund that tracks the Bloomberg Global Aggregate Float Adjusted and Scaled Index. Essentially, this broad market index contains a basket of government and corporate bonds issued from all four corners of the globe. Corporate bonds are considered investment-grade, which means they are some of the safest bonds to purchase in global commerce.

All bonds included in this fund have a maturity of more than 12 months. Vanguard states that its fund managers may also invest in similar bonds beyond this Bloomberg index to a lesser extent, whenever they see fit.

Approximately 25.57% of this fund’s holdings originate from the US, followed by Japan (7.44%), France (4.72%), and Germany (3.55%). Bonds from “other”’ nations make up 58.72% of the fund.

• Fund size: £127.7 million
• Annual charges: 0.10%
• Dividend yield: 1.72%
• Best suited to: Retail investors seeking an international ETF with a very low expense ratio and a steady dividend yield.

9. Vanguard Emerging Markets Government Bond UCITS ETF (VWOB)

Vanguard’s Emerging Markets Government Bond ETF tracks Bloomberg’s Emerging Markets USD Sovereign + Quasi-Sov index. There are US dollar bonds issued by governments and semi-public institutions in emerging nations.

All bonds featured in this fund have a maturity of more than 12 months and have no constraints in terms of credit ratings. Like Vanguard’s Global Aggregate Bond ETF, this fund may also invest in similar bonds outside of the Bloomberg index on occasion.

Approximately 6.17% of this fund’s holdings originate from Mexico, followed by Indonesia (5.75%), Saudi Arabia (5.49%), and the United Arab Emirates (5.13%). Bonds from “other” nations make up the remaining 77.46% of the fund.

• Fund size: £341.82 million
• Annual charges: 0.25%
• Dividend yield: 5.13%
• Best suited to: Retail investors seeking a global ETF with a track record of a strong dividend yield, paid monthly to shareholders.