5 Best Vanguard ETFs for Portfolio Diversification

4. Vanguard Emerging Markets Stock Index Fund ETF (NYSE:VWO)

Number of Hedge Fund Holders: 12

One of the best ways for portfolio diversification is to invest in emerging markets. These high-growth markets are continuing to post record growth numbers despite the macroeconomic volatility. The Vanguard Emerging Markets Stock Index ETF invests in major emerging markets including Brazil, Russia, India, Taiwan, and China. Vanguard Emerging Markets Stock Index Fund ETF (NYSE:VWO) price as of January 11 is $34. This means investors can pile into major emerging markets of the world in budget via this ETF, which has gained about 2% over the past six months. The total number of stocks the Vanguard Emerging Markets Stock Index Fund ETF (NYSE:VWO) is invested in is over 5,000. Among the top holdings of this ETF are Taiwan Semiconductor Manufacturing, Tencent Holdings and Alibaba Group Holding Ltd.

Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) is one of the most important semiconductor stocks in the world. Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) recently gained even after Vanguard Emerging Markets Stock Index Fund ETF (NYSE:VWO) posted a revenue decline for December. Taiwan Semiconductor makes chips for several major companies in the world, including Apple Inc. (NASDAQ:AAPL), Advanced Micro Devices, Inc. (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVDA).

A total of 87 hedge funds tracked by Insider Monkey reported having stakes in Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM), compared to 72 funds in the previous quarter. The total value of these stakes was $13.2 billion.