With US markets outperforming in recent times, many Australian investors have been seeking exposure to these markets through different ASX listed ETFs.
With US S&P 500 Index performing better than S&P/ASX 200 Index in 2024, the weaker local currency enhanced the returns further. As such two ETFs listed on the ASX offering Aussie investors participation in US markets are
iShares S&P 500 ETF (IVV)
Managed by BlackRock Investment Management (Australia) Limited (BIMAL)
This ETF tracks the US benchmark S&P 500 Index. The index comprises of the 500 largest listed US companies as per market capitalisation.
While it provides diversification, the Magnificent Seven cornering more than 30% of the index leads to some concentration. The biggest holders being Apple, Nvidia and Microsoft.
Sector representation includes 32% tech shares, 14% financials, 11% consumer discretionary, and 10% healthcare. The biggest holdings are Apple 7.6%, Nvidia 6.6%, and Microsoft 6.3%.
This ASX ETF's total returns have been, 2025 YTD +1.49%, 1Year +25.62% with Total Fund Holdings of 16 companies.
Its management fee is 0.04%.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
The Vanguard MSCI Index International Shares ETF offers exposure to many of the world's largest companies listed in major developed countries
The VGS ETF focuses on large companies with global earnings bases. It holds AAPL, TSLA, MSFT, NVDA, META, GOOGL among its top ten holdings.
Its management fee is 0.18%.
Source: Company’s Report
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