Why did the Vanguard MSCI Index International Shares ETF just hit a new 52-week high?

Why did this ETF smash the ASX 200 today?

Sebastian Bowen

Author Bio Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record. Areas of Expertise Dividend investing ETFs Education Bachelor of Political, Economic, and Social Sciences (Government and International Relations), University of Sydney Social Media X/Twitter Favorite Investment Quote "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." – Benjamin Graham

Published April 3, 2023 5:01 pm AEST

It ended up being a top day for the S&P/ASX 200 Index (ASX: XJO) during Monday's session. By the close of trading, the ASX 200 had risen by a healthy 0.63% at 7,223 points. But one ASX exchange-traded fund (ETF) did even better than that. Yes, the Vanguard MSCI Index International Shares ETF (ASX: VGS) had a great day, finishing up at $99.70 a unit, a market-beating rise of 1.24%.

But that's not all. This ETF also hit a new 52-week high this morning, climbing to the inherently pleasing mark of exactly $100 per unit.

That's the Vanguard International Shares ETF's new 52-week high. It's also the highest this ETF has traded at since February 2022.

So why has this ETF cracked a new high today, and beat the ASX 200 in the process?

Well, this ETF doesn't have a lot to do with ASX shares at all. The Vanguard International Shares ETF is an index fund. But one that tracks the MSCI World ex-Australia Index. This index represents more than 1,500 individual shares that hail from most of the advanced economies around the world.

You'll find shares from the United Kingdom here, as well as from Canada, Europe, Japan, Hong Kong, Singapore and Israel, amongst others. But it is the United States and its companies that really dominate this ETF, with almost 70% of the portfolio weighting.

Its largest holdings are the likes of Apple, Microsoft, Alphabet, Amazon.com and Tesla.

So to explain why the Vanguard International Shares ETF hit a new high today, these are the companies we should look to for an explanation.

ETF spelt out on cube blocks with rising arrows. — Image source: Getty Images

Why did the Vanguard International Shares ETF hit a new 52-week high today?

And lo and behold, the US markets had a cracking session on Friday night (our time). The S&P 500 Index (SP: .INX) rose by 1.44% for a start. And many of this ETF's top holdings had an even better time. For example, Apple shares were up 1.56%, Alphabet's Class A shares rose by 2.8%, and Tesla stock rocketed by an impressive 6.24%.

So with numbers like that coming in for many of this ETF's top holdings, it was always going to have a happy day today.

The Vanguard MSCI Index International Shares ETF is now up a healthy 9.49% year to date:

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