Sometimes investors just want to "buy the market". Investors may have many reasons to buy without regard to which individual stocks they are buying. While I don't recommend this strategy to everyone, there are some useful broad market ETFs that investors can make part of an overall strategy. These ETFs are particularly useful for less active investors seeking equity exposure.
Many investors simply purchase the SPDR S&P 500 ETF (SPY) and feel they are getting broad market exposure. Although it is true that SPY is diversified, investors must realize they are really just gaining large cap exposure. In the rebound from the March 2009 lows, investors would have outperformed by having broad market exposure versus large cap exposure. There are several companies offering broad market funds. I have reviewed three below. Two of these funds offer exposure to U.S. based companies, and one is a broad market global fund.
Vanguard
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