4 ways to get international exposure on the ASX

Australia has a large stock market compared to most countries, however it is a very small proportion of the global stock markets.

Investors that focus on just Australia are missing out on lots of opportunities to increase their geographical and industry diversification.

There are thousands upon thousands of options out there so it’s hard to know where to start. Perhaps the best place to invest for diversification would be in funds on the ASX such as the following four:

iShares S&P 500 ETF (ASX: IVV)

This exchange-traded fund matches the S&P500 by investing in the diverse list of 500 businesses selected by Standard & Poor’s.

Not only do you get access to great American-listed companies, but most of them are global companies meaning you get exposure to the whole world. Companies such as Apple Inc, Microsoft.and Exxon Mobil Corp make up the top five holdings.

MFF Capital Investments Ltd (ASX: MFF)

This is a listed investment company (LIC) run by Magellan Financial Group Ltd (ASX: MFG).

It has been the best performing overseas-focused LIC on the ASX over the last five years according to research done by Independent Investment Research. It has returned an average of 23.6% per annum.

With its top holdings being companies like Visa and Mastercard, it’s easy to see that it could keep outperforming the market.

Vanguard All-World ex-U.S. Shares Index ETF (ASX: VEU)

Referred to as VWORLDXUS CDI 1:1 (ASX: VEU) by Google Finance, this is an ETF that invests all over the globe, except in the USA. This is useful if you feel like you already have enough exposure to the USA, but not enough exposure to European and Asian markets.

Some of its top holdings include Nestle, Royal Dutch Shell, Samsung, HSBC, Toyota and Unilever.


This ETF focuses on the big global tech names that we all know. It is made up of the top 100 businesses on the NASDAQ.

Some of its top holdings include Apple, Facebook, Alphabet (Google) and Amazon. These businesses are some of the most exciting growth businesses in the world, which you can buy a small slice of without leaving the comfort of the ASX.

Foolish takeaway

At the current prices, I think MFF Capital could be the best buy. However, all four would provide great diversification for your portfolio and they’re all on my watchlist.

If you don't like the idea of funds, this stock is a great example of an Australian business expanding overseas whilst paying investors a huge dividend.


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Motley Fool contributor Tristan Harrison has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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