The Vanguard MSCI Index International Shares ETF (ASX: VGS) provides handy exposure to several global investment megatrends in a single trade.
Three of those megatrends are represented in the exchange-traded fund's top 10 holdings.
Let's check them out.
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3 megatrends captured in the ASX VGS ETF
Here are the VGS ETF's top 10 holdings.
Can you spot our megatrend trio?
| Rank | Company name | Weighting |
| 1 | Apple Inc | 4.88% |
| 2 | Microsoft Corp | 4.37% |
| 3 | Nvidia Corp | 4.29% |
| 4 | Amazon.com Inc | 2.51% |
| 5 | Meta Platforms Inc | 1.8% |
| 6 | Alphabet Inc (GOOGL) | 1.4% |
| 7 | Alphabet Inc (GOOG) | 1.21% |
| 8 | Broadcom | 1.1% |
| 9 | Tesla Inc | 1.08% |
| 10 | Eli Lilly & Co | 1.03% |
Megatrend 1: Artificial intelligence (AI)
Investors can ride the wave of the artificial intelligence (AI) megatrend in a number of ways, according to Morgans.
The top broker suggests that investors focus on three business areas: AI services providers, digital infrastructure companies, and data network operators.
AI services companies like Nvidia, Microsoft, and Alphabet are all in the VGS ETF's top 10 shares.
Megatrend 2: Solving obesity
In a new article published on asx.com.au, Elisa Di Marco and Alan Pullen of Magellan Financial Group Ltd (ASX: MFG) name solving obesity as a megatrend for 2025 and beyond.
The analysts say:
One of the biggest health issues facing developed countries is obesity.
The development of the GLP-1 class of weight loss drugs, such as Ozempic, could potentially transform the treatment of obesity and improve health outcomes for societies.
The obesity megatrend is represented by Eli Lilly & Co in the VGS ETF's top 10 holdings. Eli Lilly makes diabetes drug Mounjaro, and its sister obesity drug, Zepbound.
The VGS ASX also holds Novo Nordisk shares within its top 25 holdings. Novo Nordisk was the first mover in the GLP-1 space, inventing Ozempic for diabetes and its sister obesity drug, Wegovy.
Di Marco and Pullen commented:
In Magellan's opinion, take-up of GLP-1s could be strong over coming years as supply constraints ease and continued innovation delivers a more convenient oral pill and mitigates potential side effects such as nausea.
Growing clinical evidence of health benefits, such as lower risk of heart problems, will also encourage governments and insurers to cover the cost of the drugs.
These developments have dramatically changed the outlook for obesity, with the US recording its first fall in obesity rates since at least the 1970s, a big turnaround from predictions of just a few years ago …
Megatrend 3: Electric vehicles (EVs)
The third investment megatrend theme represented in the top 10 holdings of the VGS ETF is EVs.
Of course, the relevant stock is Tesla.
Last month, Tesla announced better-than-expected earnings for the third quarter. Thrilled investors pushed the stock price 22% higher on the day of the news.
ASX VGS the most popular Vanguard ETF
In the September quarter, investors ploughed more funds into the ASX VGS than any other Vanguard ETF.
Aussie investors have been inspired by the superior performance of the S&P 500 Index (SP: .INX) over the S&P/ASX 200 Index (ASX: XJO) this year.
This is why more people are choosing to invest in ETFs that provide exposure to international shares over ASX shares this year.
The VGS ETF is trading for $129.77 per unit at the time of writing.
