Many investors feel the need to break down suggested portfolio weightings into small positions of multiple ETFs. A 70/30 stock/bond allocation isn’t good enough for these folks.
They feel the need to split each allocation into small sub-sectors. Suddenly, these investors own ETFs dedicated to obscure sectors like junior oil stocks or Japanese small-cap stocks.
Fortunately, there are much simpler options. Like the iShares MSCI World Index ETF (TSX:XWD).The world index ETF delivers what it promises, giving investors access to the whole world of investing opportunities.
Although it only owns three different ETFs--which cover the S&P 500, worldwide developed markets, and the TSX 60--those underlying ETFs have exposure to approximately 1,500 worldwide large and mid-cap stocks.
The ETF’s largest position is in the S&P 500, which accounts for approximately 60% of overall assets. Exposure to worldwide developed markets is next, with approximately 37% of assets. And finally, the TSX 60 accounts for about 3% of assets.