Several ASX international shares exchange-traded funds (ETFs) have hit record high prices today amid Donald Trump's decisive win in the United States Presidential election.
International shares ETFs provide an easy way for investors to gain exposure to US and other global equities without having to invest via an overseas exchange.
Data from Vanguard and the ASX shows that international shares ETFs are more popular this year than local shares ETFs, attracting more than 56% of total cash inflows over the first three quarters.
This is happening because Aussie investors are seeking to leverage the outperformance of US shares compared to the ASX 200.
Here are three international shares ETFs setting new price milestones today.
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3 ASX ETFs hitting new records today
iShares S&P 500 AUD ETF (ASX: IVV)
The ASX IVV hit a record high of $60.49 on Thursday.
The IVV ETF is an index-based ETF that seeks to track the performance (before fees) of the 500 largest US shares via the S&P 500 Index (SP: .INX).
These stocks include the Magnificent Seven — incorporating Microsoft and Nvidia — as well as Warren Buffett's Berkshire Hathaway and obesity drug developer Eli Lilly And Co.
Vanguard US Total Market Shares Index ETF (ASX: VTS)
The ASX VTS reached a new all-time high of $448 on Thursday.
The Vanguard US Total Market Shares Index AUD ETF goes one step further than the IVV ETF.
The VTS ETF gives investors exposure to about 3,700 US shares by seeking to track the whole US market via the CRSP US Total Market Index.
This means investors get exposure to all the smaller up-and-coming companies listed in the US.
Find out how $5,000 invested in this ASX ETF turned into $64,335 in just 10 years.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
The ASX VGS charged to a new record high of $134.71 on Thursday.
The VGS ETF goes further than both the IVV ETF and VTS ETF. It offers broader geographical diversification through its exposure to 1,300-plus shares listed in developed countries other than the US.
Examples include Japan, the United Kingdom, and Canada.
US shares still dominate the portfolio at 73% of holdings though. This is because the VGS ETF focuses on the world's biggest businesses, and most of them are listed in the US.
As we recently reported, the VGS ETF is currently the most popular ETF in the Vanguard stable. It seeks to track the returns (before fees) of the MSCI World ex-Australia (with net dividends reinvested) Index.
Handily, there are three investment megatrends represented in its top 10 holdings alone.
Expert names 3 ETFs that may benefit from Trump's win
BetaShares Senior Investment Strategist Cameron Gleeson has picked three international shares ETFs that he thinks may benefit under Trump's key policies.
BetaShares S&P 500 Equal Weight ETF (ASX: QUS)
Gleeson says the QUS ETF would benefit from Trump's 'America First' policy stance, commenting:
Domestically focused US companies have more to gain and less to lose from a possible trade war and protectionism.
Betashares Global Energy Cos-Currency Hedged ETF (ASX: FUEL)
Gleeson says the FUEL ETF may benefit from increased US energy production:
Under Trump's plan to ramp up energy production, oil and gas companies could grow revenue even if oil prices go lower, as well as enjoying lower exploration and production costs and lower taxes.
BetaShares Gold Bullion-Currency Hedged ETF (ASX: QAU)
Gleeson says the QAU ETF would suit investors seeking exposure to the gold price when currencies are volatile:
Conventional wisdom is that Trump's policies will lead to a higher USD, however, he has explicitly stated he will bring the USD down. It is possible that greater currency volatility may result.
