While we in Australia do love our BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) shares, there is no doubt that some of the best companies in the world trade on the New York Stock Exchange and the NASDAQ. Names like Microsoft, Apple, Amazon, Berkshire Hathaway and Visa are just some of the world-dominating businesses that Americans are lucky enough to call their own.
Don’t get too depressed, however. There are several easy ways to get exposure to these companies on the ASX, without having to dabble in international trading yourself. Here are three of the best ASX shares to get some US exposure.
Magellan Global Trust (ASX: MGG)
Magellan is an investment company that specialises in international investments. Magellan runs the Magellan Global Trust – an ASX listed investment trust (LIT) that invests in US businesses like Mastercard, Apple, Visa and Starbucks, while also targeting a 4% cash distribution yield. With this growth potential combined with the income yield, you could certainly do a lot worse. MGG asks a management fee of 1.35%, which isn’t cheap but you are certainly getting some decent upside with this LIT (especially if income is important to your goals) and it remains a great option for US exposure.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
MOAT is an ASX exchange traded fund (ETF) run by the VanEck group that aims to track a list of US businesses that Morningstar believes have a ‘durable competitive advantage’ or moat. At present, MOAT’s top holdings include the Walt Disney Co, Amazon, General Mills and Kraft Foods (which are some of the best companies in the world in my opinion). MOAT has delivered a 16% per annum return over the last 5 years and charge a management fee of 0.49%.
MFF Capital Investments Ltd (ASX: MFF)
MFF is an ASX listed investment company (LIC) focused on companies with attractive business characteristics at a discounted price. Current holdings of MFF include Visa, Alphabet (Google), The Coca-Cola Company and Bank of America. On the latest data, MFF has a Net Tangible Asset (NTA) backing of $3.22 per share, currently offering a discount with the current share price of $2.93. MFF has a great track record of performance and its fund manager Chris Mackay is viewed as top-notch by many in the investing community (including this writer).
Any of these ASX options would be a fantastic way to get some US exposure in your portfolio, if you are so inclined. Just because we live in Australia doesn’t mean we have to stick with our banks and miners while missing out of some of the best companies in the world.
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Motley Fool contributor Sebastian Bowen owns shares of Magellan Flagship Fund Ltd and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. 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 Scott Phillips.