Global ETFs are exchange-traded funds that invest in a large number of securities such as shares (equity stakes in companies) or bonds (debt instruments issued by governments or corporations) from different countries.
The global ETF product group includes the well-established Vanguard FTSE All-World ETF, which invests in the global equity markets.
Investors can choose between various global ETFs with different risk-return profiles (the relationship between potential losses and potential gains). A global bond fund generally offers more consistent returns, whereas a global equity fund can be more volatile but also offer higher potential returns.
Global ETFs are listed funds that invest in the global equity or bond markets. They replicate indices (indicators that reflect the performance of selected securities), such as the FTSE All-World, and give investors the chance to participate in the growth of these markets.
Global ETFs can invest in equities and bonds from both industrialized and emerging countries (developed and developing economies), which allows them to further diversify (spread investments to reduce overall risk) their portfolio. This makes them an ideal choice for investors who wish to invest globally without selecting specific markets or individual securities themselves.
Global ETFs are particularly suitable for investors who want to invest for the long term and diversify their portfolio. This is because a global exposure (risk position in a specific market or security) enables them to participate in the performance of many different countries and sectors.
Global diversification also reduces the concentration risk (risk resulting from insufficient diversification) associated with investing in individual equities or countries. What is more, ETFs are cost-efficient and easy to trade, making them suitable for seasoned and less experienced investors alike. Vanguard has launched several global ETFs, including the FTSE All-World UCITS ETF.
Like any investment, global ETFs are subject to risks, such as market risk, which can be caused by global economic and political developments. Currency fluctuations (changes in the value of one currency relative to another) can also influence the performance of a global ETF.
Although global ETFs reduce the risk of individual securities by broadly diversifying their portfolio, downturns can still have a negative impact. Even broadly diversified investments such as global ETFs can fluctuate in value and returns are not guaranteed.
To invest in an ETF, investors must set up a securities account (an account used to hold and manage investments) with a bank or online broker. They can then buy the desired ETF via the provider's trading platform.
Alternatively, you can set up a savings plan to invest regularly and automatically in the ETF of your choice.
Global equity ETFs aim to match the return of a global equity index by investing in the shares included in that index. Generally speaking, global indices are broadly diversified and include companies of different sizes from numerous countries and regions.
Global bond ETFs track a global bond index by investing in a wide range of government and corporate bonds from different countries and regions.
We are committed to our clients and their the long-term investment success. And we believe that this success is rooted above all in four core principles: realistic goals, balance, discipline and low cost.
In our experience, low costs are a decisive factor in long-term investment success. Vanguard global ETFs are particularly cost-efficient, allowing investors to keep more of their returns.
Diversification is a core component of our investment philosophy, as the right balance enables investors to achieve more stable returns and reduce risks. With Vanguard global ETFs, our clients can invest in numerous countries and sectors and participate in the performance of global markets.
Vanguard global ETFs aim for consistent growth and stable returns over many years. We recommend that investors focus on long-term goals without getting distracted by short-term market volatility.
Building and managing a portfolio yourself is not for everyone, and investing always involves risk.
Further details and key figures on the ETFs can be found on our fund pages.
When it comes to investing globally, an ideal choice is global ETFs, which invest in shares or bonds from different countries and sectors. These ETFs, such as the Vanguard FTSE All-World UCITS ETF, are an easy way to access a broadly diversified global portfolio.
A global ETF savings plan can help you invest regularly and systematically in the global equity markets.
The following points can help you find the right ETF:
MSCI World and FTSE All-World indices differ mainly in their country exposure. While the MSCI World Index is limited to industrialized countries, the FTSE All-World Index includes emerging markets as well.
Both indices take a market capitalization-weighted (the market value of a company, calculated as the number of outstanding shares multiplied by the share price) approach to global markets but the differences in their respective geographical exposures can lead to deviations in the risk/return profile. Which ETF is right for you depends on your goals and your risk tolerance.
The FTSE Developed World Index consists of shares from industrialized countries such as the USA, Japan and Germany, while the FTSE Emerging Markets Index focuses on emerging markets such as China, India and Brazil. The FTSE Developed World Index currently contains around 2,100 shares and the FTSE Emerging Markets Index just under 2,200.
The FTSE All-World is a diversified stock market index and currently consists of some 3,700 shares from 25 industrialized and 24 emerging countries from numerous market capitalization segments.
When creating global indices such as the MSCI World and the FTSE All-World, index providers select shares and weight them according to their market capitalization. To ensure broad market coverage, the indices include shares of companies from different countries and sectors.
Index providers such as MSCI and FTSE select securities according to certain criteria, including market capitalization, liquidity and sector classification. The indices are reviewed on a regular basis and adjusted to the current market conditions in order to reflect their target market as accurately as possible.
Global ETFs invest in numerous countries and sectors, but not always in all the world's markets. Nevertheless, they are well suited to diversifying a portfolio and investing in global markets. Investors who seek an increased exposure to certain countries and regions should opt for an ETF that invests in that particular market.
The construction of global ETFs always follows certain rules that determine factors such as the weighting of individual securities. Investors should familiarize themselves with these rules as part of an informed investment decision.
The FTSE All-World Index contains shares of companies from around 50 countries, weighted according to market capitalization. This makes an ETF that tracks this index suitable for diversified exposure to numerous countries and sectors.
Passive funds and ETFs, also known as index funds, aim to track the performance of a specific index – such as the FTSE All-World Index – by investing in the securities it contains.
Active funds and ETFs, on the other hand, aim to outperform the market by actively selecting specific securities. Here, the fund managers analyze various markets and companies and invest in securities that they consider to be undervalued. Active security selection requires careful analysis and higher portfolio turnover, which generally leads to higher management costs. Investors can potentially achieve higher returns with active funds, but the risk is also higher because the results depend greatly on the skill and decisions of the management team.
Investment risk information
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
Performance figures shown may be calculated in a currency that differs from the currency of the share class that you are invested in. As a result, returns may decrease or increase due to currency fluctuations.
Investments in smaller companies may be more volatile than investments in well-established blue chip companies.
ETF shares can be bought or sold only through a broker. Investing in ETFs entails stockbroker commission and a bid- offer spread which should be considered fully before investing.
The Funds may use derivatives in order to reduce risk or cost and/or generate extra income or growth. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the Fund's net asset value. A derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index.
Some funds invest in securities which are denominated in different currencies. Movements in currency exchange rates can affect the return of investments.
For further information on risks please see the “Risk Factors” section of the prospectus on our website.
Important information
This is a marketing communication.
Vanguard only gives information on products and services and does not give investment advice based on individual circumstances. If you have any questions related to your investment decision or the suitability or appropriateness for you of the product described, please contact your financial adviser.
The information contained herein is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information is general in nature and does not constitute legal, tax, or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of shares and /or units of, and the receipt of distribution from any investment.
Potential investors will not benefit from the protection of the FinSA on assessing appropriateness and suitability.
The Manager of Vanguard Funds plc is Vanguard Group (Ireland) Limited. Vanguard Investments Switzerland GmbH is a financial services provider, providing services in the form of purchase and sales according to Art. 3 (c)(1) FinSA . Vanguard Investments Switzerland GmbH will not perform any appropriateness or suitability assessment. Furthermore, Vanguard Investments Switzerland GmbH does not provide any services in the form of advice. Vanguard Funds Series plc has been authorised by the Central Bank of Ireland as a UCITS. Prospective investors are referred to the Funds' prospectus for further information. Prospective investors are also urged to consult their own professional advisors on the implications of making an investment in, and holding or disposing shares of the Funds and the receipt of distributions with respect to such shares under the law of the countries in which they are liable to taxation.
Vanguard Funds plc has been approved for offer in Switzerland by the Swiss Financial Market Supervisory Authority. The information provided herein does not constitute an offer of Vanguard Funds plc in Switzerland pursuant to FinSA and its implementing ordinance. This is solely an advertisement pursuant to FinSA and its implementing ordinance for Vanguard Funds plc. The Representative and the Paying Agent in Switzerland is BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich. Copies of the Articles of Incorporation, KID, Prospectus, Declaration of Trust, By-Laws, Annual Report and Semiannual Report for these funds can be obtained free of charge from the Swiss Representative or from Vanguard Investments Switzerland GmbH via our website.
The Manager of the Ireland domiciled funds may determine to terminate any arrangements made for marketing the shares in one or more jurisdictions in accordance with the UCITS Directive, as may be amended from time-to-time.
The Indicative Net Asset Value (“iNAV”) for Vanguard’s ETFs is published on Bloomberg or Reuters. Refer to the Portfolio Holdings Policy.
For investors in Ireland domiciled funds, a summary of investor rights can be obtained and is available in English, German, French, Spanish, Dutch and Italian.
London Stock Exchange Group companies include FTSE International Limited ("FTSE"), Frank Russell Company ("Russell"), MTS Next Limited ("MTS"), and FTSE TMX Global Debt Capital Markets Inc. ("FTSE TMX"). All rights reserved. "FTSE®", "Russell®", "MTS®", "FTSE TMX®" and "FTSE Russell" and other service marks and trademarks related to the FTSE or Russell indexes are trademarks of the London Stock Exchange Group companies and are used by FTSE, MTS, FTSE TMX and Russell under licence. All information is provided for information purposes only. No responsibility or liability can be accepted by the London Stock Exchange Group companies nor its licensors for any errors or for any loss from use of this publication. Neither the London Stock Exchange Group companies nor any of its licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE or Russell indexes or the fitness or suitability of the indexes for any particular purpose to which they might be put.
Issued by Vanguard Investments Switzerland GmbH.
© 2025 Vanguard Investments Switzerland GmbH. All rights reserved.
4292940
