By region
Developed-market ETFs
Funds that hold large and medium-sized companies from the world's wealthier, established economies — like the US, Europe, and Japan.
What Developed-market ETFs are
A developed-market ETF is a single fund that buys shares in hundreds or thousands of companies based in the world's richer, more established economies — think the United States, Western Europe, Japan, Canada, and Australia. (An ETF, or exchange-traded fund, is a basket of investments you can buy in one go, like a single share.)
The most common yardstick is the MSCI World index, which tracks around 1,400 large and medium-sized companies across ~23 developed countries. "Developed" is simply a label for economies with mature financial systems and higher average incomes — it deliberately leaves out "emerging" markets such as China, India, and Brazil.
For a beginner, this can be a simple way to spread money across many countries and industries at once, rather than relying on a single firm. One thing worth knowing: these funds usually lean heavily toward the US (often ~70% of the total), so you are less spread out geographically than the name might suggest.
At a glance
Why beginners look here
Spread across many countries
One purchase gives you a slice of hundreds of companies across several established economies, instead of just one firm or one country.
Usually low running costs
Broad developed-market funds often charge around ~0.12%–0.20% a year, taken automatically from the fund.
Heavily weighted to the US
Because US companies dominate these indexes, a big move in US markets moves the whole fund — so it is less balanced than it looks.
What to look for
Popular Developed-market ETFs
A few of the largest, pulled live from the screener — an example, not a recommendation.
Schwab International Equity ETF
State Street® SPDR® Portfolio Developed World ex-US ETF
State Street® SPDR® MSCI All Country World USD Hdg UCITS ETF (Acc)
State Street® SPDR® MSCI All Country World EUR Hdg UCITS ETF (Acc)
Amundi Prime Global UCITS ETF Dist
Schwab International Small-Cap Equity ETF
Good to know
Does "developed-market" cover the whole world?
No. It includes only richer, established economies like the US, Europe, and Japan. To add China, India, and other emerging markets, people often pair it with an emerging-market fund, or choose an all-world fund instead.
How is this different from a world ETF?
A fund tracking MSCI World is a developed-market fund. "All-world" funds, such as those tracking FTSE All-World, go a step further and include emerging markets too.
Why is so much of it in the US?
These indexes weight companies by size, and US firms are currently the largest, so they typically make up around ~70% of a developed-market fund.
Related topics
Finance Hamster provides educational information about ETFs and investing. It is not investment, tax, or legal advice, and not a recommendation to buy or sell any security. Markets carry risk; do your own research or consult a licensed adviser.