A common misconception is that by investing in US ETFs, the investments are limited to companies based in the United States. Here are two different scenarios which show that the ETFs invested are actually more diversified then what some may think.
- For example, the Vanguard Total Stock Market ETF (VTI) tracks the performance of United States (US) Total Market Index. This includes companies such as Apple, Microsoft, Amazon and Google. These are multinational companies (MNCs) which have offices, employees and products used around the world
- Another ETF which we invest in is the Vanguard FTSE Emerging Markets ETF (VWO). While we purchase this ETF from New York Stock Exchange (NYSE), this invests in stocks of companies located in emerging markets around the world, such as China, Brazil, Taiwan, and South Africa.