It's been a stunning year for the Vanguard MSCI Index International Shares ETF (ASX: VGS) on the ASX. This exchange-traded fund (ETF) started the year at just over $91 a unit. But today, those same VGS units are on the ASX for $103.27, up almost 13.5% year to date.
What's more, this Monday saw the VGS ETF hit a new 52-week high. Yep, VGS units touched $104.74 each on Monday, which is the highest this fund has traded at since early 2022. And even the all-time highs of over $106 a unit that this ETF hit back then are only a few percentage points away from today's levels, as you can see below:
The VGS ETF is a popular one. But many value-leaning investors out there might be wary of investing in anything that's this close to its 52-week (and all-time) high. So is it still worth investing in the Vanguard International Shares ETF?
Is it worth investing in the VGS ETF at a 52-week high?
Well, I would argue that it is. Index funds don't give investors the same kinds of market mispricing opportunities as individual shares do. They simply represent investing in a market as a whole.
In this ETF's case, this is especially so, since the Vanguard International Shares ETF tracks markets across more than 20 countries, and has over 1,500 individual shares in its portfolio.
As such, an index fund like VGS is perfect for a dollar-cost averaging strategy with regular investments.
So I wouldn't worry about investing extra cash into this ETF right now. After all, markets go up far more often than they go down. And in the Vanguard International Shares ETF's case, investors have enjoyed an average performance of 11.2% per annum over the past five years. As such, there will be a fair amount of time that this ETF seems like it is sitting near its high watermark.
Plus, if you hold back, you will miss out on this ETF's quarterly dividend distributions too, which have played a significant role in those returns we've just discussed.
Some of this ETF's largest holdings include the likes of Apple, Microsoft, NVIDIA, Alphabet and Amazon.com. I would rather be investing in these world-leading companies right now than keeping my cash in the bank.
