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Vanguard FTSE All-World Ex-US Small Cap

Symbol: VSS
Expense Ratio: 0.17%

Tracking an index of about 3,440 small-and medium-capitalization stocks, the ETF holds a diverse mix of companies in both developed and emerging markets. The ETF's annual expense ratio is a low 0.17% and the fund sports a 2.8% dividend yield.

See Kiplinger ETF 20 at a Glance for the complete list of the best exchange-traded funds.
Visit Winning Model ETF Portfolios for five examples of how you can put ETFs to work.