VEU allows investors to access overseas growth. Most investors are too focused on American companies and forget about the investment world beyond our borders, overlooking the potential diversification qualities of including international exposure.

BND helps diminish a portfolio’s volatility as fixed-income assets have a low correlation with stocks. Consequently, bonds could perform and help support an investment portfolio as the equities market dips. The ETF provides exposure to the entire U.S. bond market, including investment-grade corporate and government bonds.

Lastly, TIP tracks Treasury bonds but also hedges against future inflation – Treasury Inflation-Protected Securities returns are pegged to the Consumer Price Index. Since TIPS are excluded from most aggregate bond funds, the ETF can complement a bond fund allocations.

For more information on ETFs, visit our ETF 101 category.

Max Chen contributed to this article.