Large-cap international ETFs provide investors with diversified exposure to global markets, offering access to leading companies outside the United States. Investors consider international ETFs to hedge against domestic market volatility, capitalize on global growth opportunities, and enhance portfolio diversification. By including large-cap international stocks, these ETFs allow investors to participate in economic expansion across multiple regions while maintaining stability through established multinational corporations.

The Vanguard S&P 500 ETF (VOO) is a widely recognized investment fund that provides exposure to the largest publicly traded companies in the United States. Designed to track the performance of the S&P 500 index, VOO offers investors a cost-effective way to diversify their portfolios across multiple sectors. Investors consider VOO for its ability to capture large-cap market trends while maintaining low expense ratios, ensuring efficient portfolio management.

Market capitalization, or market cap, represents the total value of a company’s outstanding shares, serving as a key metric for evaluating its size and financial standing. Larger companies with high market capitalization often indicate stability and strong financial performance, while smaller firms may offer higher growth opportunities but with increased volatility. Understanding market cap allows investors to make informed decisions, aligning their portfolios with market trends and economic conditions.