In my opinion in Europe we are constrained on the number of ETFs available compared to the US and the selection is more selective when it comes to the ones that are a bit more high quality, In this section, we discuss what is currently, three of my favorite ETFs that don't precisely follow one strategy such as for example dividend investing, as I have dealt with that in a separate article. I chose 3 categories in which I choose what I believe are currently the best ETFs available in each category; All-World ETF, US-Focused ETF, and Dividend Global ETF the focus is more on current income (yield) and year-over-year growth.
All-World ETF
Vanguard All-World UCITS ETF For the full review click above, I really believe that one of the best ETFs would be an ETF that is diversified across the world, through various sectors and high-quality companies as it reduces country and sector-specific risk, and therefore an ETF such as VWRL or the iShares alternative the IWDA.VWRL or the iShares alternative to the IWDA.offers exposure to a broad range of global equities, including developed and emerging markets. These ETFs track an All-World Index, representing a significant portion of the worldwide stock market. This global diversification allows investors to benefit from the potential growth opportunities in various economies and industries around the world, reducing the risk associated with investing in a single country or region.
US-focused ETF
Vanguard S&P 500 UCITS ETF (VUSD) ​Many investors choose to focus on the S&P 500 and invest in ETFs such as VUSD and IUSA /CSPX) for several compelling reasons. Firstly, the S&P 500 is widely regarded as a benchmark index representing the performance of the U.S. stock market. It consists of 500 large-cap companies across various sectors, encompassing a significant portion of the U.S. economy. By investing in ETFs that track the S&P 500, such as VUSD (Vanguard S&P 500 UCITS ETF) and IUSA (iShares Core S&P 500 UCITS ETF), investors gain exposure to a diversified portfolio of some of the most influential and established companies in the United States. This broad representation allows investors to benefit from the overall growth and stability of the U.S. economy and the potential for long-term capital appreciation. The S&P 500 has a track record of performing well, therefore some investors prefer focusing on these companies, personally, I prefer a more diversified focus/ approach and would prefer choosing a world ETF with large exposure to the United States instead.
Dividend Global ETF
Fidelity Global Quality Income UCITS ETF Review (FGQI) For the full review click above, this ETF currently yields 2.9% and provides good dividend growth and good sector diversification, and currently stands as one of my favorite ETFs. FGQI is an ETF that aims to provide investors with exposure to high-quality and dividend-paying companies in developed and emerging markets. This ETF, which stands for Fidelity Global Quality Income UCITS ETF, tracks the Fidelity Global Quality Income Index. Investors who focus on FGQI and similar ETFs often prioritize stable income generation and high-quality companies with strong fundamentals. FGQI's underlying index includes companies that exhibit financial strength, consistent dividend payments, and attractive valuation metrics. By investing in FGQI, investors gain access to a diversified portfolio of global companies that have a track record of delivering stable dividends and demonstrating resilience in various market conditions. With its focus on quality and income generation, FGQI serves as a compelling option for investors seeking exposure to global dividend-paying companies while aiming to preserve capital and generate a reliable income stream.
Conclusion
If I had to choose one, I would choose an All-World ETF as this is more of a mixed strategy with good diversification around the world relying on the growth of companies around the world rather than 1 single country or strategy
Disclaimer: I am not a financial advisor, this blog is centered around my opinion and should not be viewed as legal, professional, or financial advice. For me, it's crucial to supplement my knowledge with resources like videos, articles, and books to deepen my understanding of investing principles and strategies.
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