The universe of ETFs has been growing rapidly since their introduction to the investing world in 1993. At last count, the total is 911 funds -- 827 ETFs and 84 exchange-traded notes (ETNs) -- that cover virtually every sector imaginable. From real estate, commodities and technology to small-cap, growth and value funds, there’s an ETF for just about any type of investment goal. But with so many ETFs out there, it can be a challenge to choose the funds that are right for your individual portfolio and goals. If so, a solution for you may be the relatively new One Fund ETF (ONEF).

The One Fund ETF is aimed at making investing easy for you by offering a globally diversified stock portfolio in a single ETF. With this individual fund, you get access to large, medium and small-cap companies in both developed and emerging markets, giving you exposure to 95% of global equity markets. In fact, the One Fund ETF currently includes almost 5,000 small, medium and large-cap companies in its portfolio. The fund primarily targets small and large U.S. companies, small and large companies in non-U.S. developed markets, and large companies in emerging markets.

In addition, the fund’s holdings are weighted to provide diversified global stock market exposure and are adjusted to reflect management’s view of the relative long-term economic prospects, competitive advantage and potential return of each target market. The ETF’s holdings are a diversified blend of U.S. and international stocks that are designed to achieve a return between that of the S&P 500 Index and the MSCI All Country World Index.

Its top five holdings as of January 19, 2011, were the Vanguard Large-Cap ETF, 48.69%; Vanguard Small Cap ETF, 20.51%; Vanguard Europe Pacific ETF, 20.30%; the iShares MSCI EAFE Small Cap Index, 5.26; and Vanguard Emerging Markets ETF, 5.25%. Its top ten country weightings as of Oct. 31, 2010, were United States, 69.1%; Japan, 5.8%; United Kingdom, 5.6%; France, 2.4%; Australia, 2.3%; Germany, 2.1%; Switzerland, 1.9%; China/Hong Kong, 1.7%; Brazil, 0.9%; and Sweden, 0.9%.

ONEF has an index-investing approach to build a diversified global stock portfolio, while also aiming to keep costs low. Since its launch on May 11, 2010, ONEF has risen an impressive 15.19% through its closing price on January 18, 2011.

Investors that may be most interested in ONEF are those who have smaller accounts and want to diversify fully into global equities through a single trade. Since ONEF has not achieved the minimum 100,000 average daily trading volume that I like to see before recommending a fund, it is not one that I am ready to advise you to buy just yet. But it is one worth watching.

For advice about which ETFs to buy and to sell, I urge you to sign up for my ETF Trader service. As always, I am pleased to answer any of your questions about ETFs, so don’t hesitate to contact me if you have one. To send a question to me, simply click here. You may just see your question answered in a future ETF Talk.