Best World ETFs (And Why Investing Is Like Marriage)

You know what good marriage and good investing have in common?

Both require a long-term commitment, willingness to endure tough times, and most importantly — choosing a partner you can stick with for decades, not just a few months.

Today, we'll talk about global ETFs. Because choosing an ETF is a bit like choosing a life partner. You don't want someone sexy and exciting who ruins you in a year. You want someone reliable, boring, and stable.

What Is an ETF?

ETF = Exchange-Traded Fund.

Sounds complicated, but it isn't. Think of it as a shopping basket of stocks.

Instead of buying companies one by one (Apple, Microsoft, Nestlé...), you buy one ETF that contains hundreds or thousands of companies at once.

It's like going to a restaurant and ordering a tasting menu instead of one dish. You get a bit of everything.

Why is that great?

Let's say you believe Apple will grow. You buy Apple stock. But what if Apple does something stupid and drops 50%? You've lost half your money.

But if you buy an ETF with 3,000 companies including Apple, and Apple drops 50%? Almost nothing happens. Apple is just a small piece of a big pie.

Risk is spread automatically.

Why "The Whole World" and Not Just America?

Maybe you've heard about the S&P 500 — that's 500 of the largest American companies. A lot of people invest in it.

But why limit yourself to just America?

Global ETFs contain companies from all over the world:

USA (Apple, Microsoft, Amazon...)
Europe (Nestlé, LVMH, SAP...)
Japan (Toyota, Sony...)
Emerging markets (Samsung, TSMC, Alibaba...)

ETF composition breakdown Breakdown of one of the ETFs from Vanguard.

You don't have to guess which country will be the most successful over the next 30 years. You bet on the entire global economy.

And it grows long-term. Wars, crises, pandemics — and it still grows. Because people want to live better and companies want to make money.

ETF as Marriage

This analogy really fits. Let me expand on it.

1. Choosing a Partner Is Key

When choosing a life partner, you take your time. You date, get to know each other, try things out. But once you say "yes," you don't want to reconsider every year.

It's the same with ETFs.

Choose one good ETF. Once. And then stop thinking about it. No jumping from fund to fund. No "hey, this other ETF is a tiny bit cheaper."

Consistency wins.

2. Hard Times Will Come

Every marriage goes through crises. Arguments, misunderstandings, periods when things don't work. What do you do? Leave? No. You stay and work on it.

Markets also fall. Sometimes a lot. But if you chose a good "partner" (quality global ETF), stay. Don't run at the first crisis.

Downturns are part of the game — not a reason for divorce.

3. Boring = Good

Sexy relationships are fine in movies. In real life, you want someone you can go to sleep with knowing everything will be fine in the morning.

A boring ETF that does the same thing year after year is exactly what you want.

You don't want adrenaline. You want results.

Which Global ETF to Choose?

Before I show you specific funds, here are a few things to look at:

Coverage — Do you want just developed countries (USA, Europe, Japan), or also emerging markets (China, India, Brazil)? Broader coverage = greater diversification.

TER (annual fee) — The lower, the better. For global ETFs, it ranges between 0.17–0.22%. The differences are small, but over 30 years they add up.

Fund size — Bigger fund = more stable, more liquid, less risk of closure. Look for funds with billions in assets.

Accumulating vs. Distributing — For most investors, accumulating is typically better (I'll explain below).

Main Candidates

ETF	Coverage	TER	Size	Type
VWCE	Whole world (developed + emerging)	0.22%	~€40B	Accumulating
IWDA	Developed markets only	0.20%	~€85B	Accumulating
SPYI	Whole world (developed + emerging)	0.17%	~€15B	Accumulating
VWRA	Whole world (developed + emerging)	0.22%	~€2B	Distributing

ETF performance comparison

VWCE — The whole world in one fund. The most popular choice among European investors. One purchase, you have everything.

IWDA — Developed markets only, without emerging countries. Largest fund, lowest fee in category. If you also want emerging markets, you need to add a second fund (like EMIM).

SPYI — Cheapest global ETF. Smaller than VWCE, but still large enough. Relatively new.

VWRA — Same as VWCE, but distributing. Dividends come to your account (and you pay tax on them).

Each of these funds is a solid choice. Pick based on what's more important to you — simplicity, low fees, or fund size.

What Is TER and Why Does It Matter?

TER = annual management fee.

For VWCE, it's 0.22% per year. That means: out of every $10,000, you pay $22 per year.

For comparison — traditional mutual funds often charge 1.5–2% annually. That's 7 to 10 times more.

Over 30 years of investing, that difference means hundreds of thousands of dollars in your pocket.

But careful — the difference between 0.20% and 0.22% is negligible. Don't chase the absolute cheapest fund at all costs. What matters more is that you invest regularly.

Accumulating vs. Distributing

This is important for most investors.

Accumulating ETF

Dividends are automatically reinvested back into the fund. You don't receive money in your account — instead, the value of your shares grows.

In many countries, you don't pay ongoing dividend taxes. You pay tax only when you sell.

Distributing ETF

Dividends come to your account as real money. You have to reinvest them yourself. And you pay dividend tax every year.

For most long-term investors, the clear choice is: accumulating.

My Personal Choice

I chose the Vanguard fund VWCE. Even though the chart above shows better returns and lower TER from competitors, I trust Vanguard as a company. This firm has been operating in the market for decades and their management is consistent, with the fund being large enough. For me, these are additional important factors. Definitely, before you buy a fund, check what it covers and how the fund and the company behind it have performed historically.

If you're interested in how to actually buy, check out the article: Investing for Beginners

Summary

ETF = basket of stocks. You buy thousands of companies at once.

Global ETF = the whole world in one fund.

And most importantly:

The best ETF is the one you'll consistently invest in.

There's no perfect choice. There's only a good enough choice + consistency + time.

So choose your partner and start.

Have questions? Reach out at vymerd@gmail.com.