The latest exchange traded fund (ETF) from Vanguard has launched and is a welcome addition to the fund industry, as well as the fund family.

The Vanguard FTSE All-World ex U.S. Small Cap ETF (VSS) seeks to track a benchmark index of international small-cap companies in both developed and emerging markets.

The ETF holds approximately 2,100 securities and has an expense ratio of 0.38%, making it lower-cost and more broadly diversified than the other small-cap international-focused ETFs available today. This is the only small-cap ETF available that covers developed and emerging markets together.

The index includes these countries, with the largest country allocations as Japan at 19.2%; United Kingdom 16%; Canada 11.1%; France 4.8%; Switzerland 4.5%; Germany 4.4%; Taiwan 3.9%; Australia 3.1%; and South Korea 3%.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.