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.
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:
- Apple Inc (NASDAQ: AAPL)
- Microsoft Corporation (NASDAQ: MSFT)
- Amazon.com, Inc. (NASDAQ: AMZN)
- Facebook, Inc. (NASDAQ: FB)
- Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)
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.