Index-based exchange-traded funds (ETFs) tracking Australian, United States, and developed global share markets are on a tear in 2024.
Some of this momentum is due to interest rates falling in the US and other overseas countries. There is also an expectation that rates will fall in Australia in 2025.
We're also at a time of year when stocks typically do well. It's dubbed the 'Santa Rally', and it's potentially started early this year.
We saw a 3.38% rise in ASX 200 shares and a 5.73% upswing in the S&P 500 Index (SP: .INX) last month.
And today, the ASX 200 once again reset its all-time high at 8,514.5 points, up 0.79%. This followed the S&P 500's rise to a new record of 6,053.58 points in overnight trading.
Let's check out three ASX ETFs benefitting from these index gains with new unit price records today.
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3 ASX ETFs ripping new records on Tuesday
Vanguard Australian Shares Index ETF (ASX: VAS)
The ASX VAS reached a new record high of $105.94 per unit on Tuesday.
The ASX ETF is currently trading at $105.76 per unit, up 0.66% today and up 12.3% year to date.
The VAS ETF seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO) before fees. This gives investors exposure to the top 300 stocks on the ASX by market capitalisation.
Its top three holdings are Commonwealth Bank of Australia (ASX: CBA) (9.52%), BHP Group Ltd (ASX: BHP) (8.61%), and CSL Ltd (ASX: CSL) (5.52%).
The VAS ETF has a management expense ratio (MER) of 0.07%.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
The ASX VGS hit a new all-time high of $138.37 per unit on Tuesday.
The ASX ETF is currently trading at $138.30 per unit, up 0.91% today and up 25.7% year to date.
The VGS ETF seeks to track the performance of the MSCI World ex-Australia Index (with net dividends reinvested), before fees.
The ASX ETF gives investors exposure to 1,300-plus shares listed in developed nations, including the United States, Japan, the United Kingdom, Canada, France, and Switzerland.
As we recently reported, the ASX VGS is the most popular ETF in the Vanguard stable in 2024.
Its top three holdings are Apple Inc (4.87%), Nvidia Corp (4.83%), and Microsoft Corp (4.24%) shares.
The VGS ETF has a MER of 0.18%.
Vanguard says Australian investors are showing a preference for ASX ETFs tracking international shares this year.
Adam DeSanctis, Vanguard's Head of ETF Capital Markets, Asia-Pacific, comments:
The appetite for international equity ETFs by investors is not subsiding and continues to outpace the inflows into Australian equity ETFs and other industry segments.
… a high percentage of investors see ETFs as the quickest and lowest-cost way to access different types of asset classes and offshore markets.
iShares S&P 500 AUD ETF (ASX: IVV)
The ASX IVV reached a new record high of $62.41 per unit on Tuesday.
This ASX ETF is currently trading at $62.40 per unit, up 0.84% today and up 33.9% year to date.
The ASX IVV seeks to track the returns of the S&P 500 Index (SP: .INX) before fees. The ETF gives ASX investors exposure to the 500 largest listed US companies.
The ASX IVV's top three holdings are Apple (7.05%), Nvidia (6.65%), and Microsoft (6.15%) shares.
The ASX ETF has a MER of 0.04%.
