The Vanguard MSCI Index International Shares ETF (ASX:VGS) has more than doubled the ASX 200's returns in 2021

Why is this ETF performing so strongly in 2021?

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Investors in the Vanguard MSCI Index International Shares ETF (ASX: VGS) have something to cheer about in 2021.

Despite only being up a measly 0.12% today, at the time of writing to $100.93, the VGS share price has had a phenomenal 2021. Since the beginning of the year, shares in the popular exchange-traded fund (ETF) have appreciated 20.2%. For context, the S&P/ASX 200 Index (ASX: XJO) is up 8.74% since 1 January. In other words, VGS has more than doubled the gains of the benchmark index.

Let's take a closer look at the ETF.

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Image source: Getty Images

What is VGS invested in?

As The Motley Fool has previously reported, VGS is invested in over 1500 shares, none of which are listed on the ASX.

These 5 companies, all listed on NASDAQ, individually account for more than 1% of the fund's total:

Other notable companies the ETF is invested in include Tesla Inc (NASDAQ: TSLA), Pfizer Inc. (NYSE: PFE), PayPal Holdings Inc (NASDAQ: PYPL) and Visa Inc (NYSE: V).

Whatever shares the fund is invested in, it's clearly doing wonders for shareholders in its ASX-traded ETF.

What are the professionals saying about ASX VGS?

The Motley Fool's own Scott Phillips says VGS can be a good starting point for ASX investors. Buying into the fund gives investors instant access to 1505 of the biggest companies outside of Australia. Vanguard also offers an ASX alternative, the Vanguard Australian Shares Index ETF (ASX: VAS). This gives investors access to the 300 largest companies on the ASX.

Another reason Vanguard may be attractive to investors is its low rates. With a management fee of just 0.18%, it's a lot lower than a lot of other managed funds.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, Microsoft, PayPal Holdings, Tesla, Vanguard MSCI Index International Shares ETF, and Visa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon, long January 2022 $75 calls on PayPal Holdings, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, PayPal Holdings, and Vanguard MSCI Index International Shares ETF. 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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