Overnight the S&P 500 (INX) dropped by 9.5%, a truly terrible day for the US share market.
This came after US President Donald Trump decided to cancel all travel with Europe for 30 days.
The fall by the US share market was heavy. It's now back at the level we saw briefly during the December 2018 drop. It was mid-2017 that the S&P 500 was last at this price for a sustained period. So we still haven't dropped that far yet, but the gains are quickly being reversed.
However, I think this is creating some investment opportunities on the ASX which are focused on US shares, such as these:
iShares S&P 500 ETF (ASX: IVV)
The exchange-traded fund (ETF) which seeks to track the S&P 500 seems like an obvious idea. The cheaper it goes the better value it becomes.
There are more American and global people buying products from various services of businesses like Microsoft, Amazon, Berkshire Hathaway, Alphabet, Apple and so on – which are some of the largest positions in the ETF.
The ETF still has one of the cheapest ETF fees on the ASX with a cost of just 0.04% per annum.
MFF Capital Investments Ltd (ASX: MFF)
This has been one of the best-performing listed investment companies (LICs) over the past decade. It has had a large holding of Visa and Mastercard for a long time, which made up around a third of the portfolio at the last disclosure. Those two shares dropped 7.4% and 10.4% respectively overnight.
I'm confident in the ability of Chris Mackay to steer MFF Capital through this. When the share price falls are over I think MFF Capital could again be a top performer.
It also has lower costs, as a percentage, compared to other globally-focused LICs. Most of those costs are fixed, so it will seem even cheaper as MFF Capital grows in size over time.
Foolish takeaway
There are opportunities for us to take advantage of, both here and internationally. I'm going to invest in something today, opportunities like this just don't come along very often. MFF Capital is something I'm closely watching and will buy if it keeps falling.
