Rising oil and gas prices rattled investors, raising concerns about the impact on the businesses they were invested in.

We are starting to see that impact, with Qantas Airways Ltd (ASX: QAN) doubling its jet fuel cost estimates for 2H FY26 today.

Fortescue Ltd (ASX: FMG) chair Dr Andrew Forrest has also revealed they paid up to double for emergency fuel supplies last month.

With all this in mind, it's interesting to look at how Aussie investors repositioned their ASX ETF portfolios as the conflict unfolded.

Aussies have $329 billion invested in ASX ETFs, and last month they ploughed an additional $5.6 billion into their favoured funds.

That makes March the third-highest month for net inflows ever. It seems the volatility caused by the war did not dampen their interest.

A new report from Betashares, which shows the top 10 ASX ETFs for inflows and outflows last month, reveals some interesting trends.

Let's take a look.

Top 10 ASX ETFs for inflows last month

Top 10 ETFs for outflows

How ASX ETFs investors repositioned last month

The VAS ETF is the most popular Australian shares ETF on the market, so it's no surprise to see it take out the top spot.

VGS is the most popular international shares ETF, so it's routine to see it close to the top as well.

The presence of IHVV in the top inflows list, and its unhedged counterpart IVV ETF in the top outflows, shows investors are mindful of currency changes over the past 12 months.

The Australian dollar has risen from just over 60 US cents 12 months ago to a three-year high of 70.8 US cents today.

As James Gruber, Equity Market Strategist at CommSec, points out:

When the Australian dollar strengthens, your international ETF returns shrink, and if the Australian dollar weakens, your returns improve.

Outflows from QAU ETF reflect profit-taking amid a 21% decline in the gold price over the first three weeks of March.

Sprott Managing Partner, Paul Wong, said investors need not be worried though.

Wong added:

Gold's March drop reflects a liquidity crunch, not a breakdown in its long-term role. 

As financial stress builds, gold is likely to reassert itself as a key monetary anchor.

Another interesting trend is the inflows into non-US international ETFs, reflecting the poorer performance of US markets this year.

In the year to date, the S&P 500 Index (SP: .INX) has lifted just 0.6% compared to a 3% bump for the ASX 200.

The post How ASX ETF investors repositioned as the Iran war shook markets appeared first on The Motley Fool Australia.

As will a slew of other investors holding iShares ASX exchange-traded funds (ETFs) comprised of international shares.

Here's how much you can expect to receive, according to the final distributions schedule.

If you've chosen to reinvest your dividends via the distribution reinvestment plan (DRP), we've also included those DRP unit prices below.

Here's how much you'll receive in dividends

Here is a summary of the dividend amounts that investors in these iShares ETFs will receive today.

The iShares S&P 500 ETF (ASX: IVV) will pay 20.14 cents per unit. The DRP price is $68.66 per unit.

The iShares Global 100 ETF (ASX: IOO) will pay 56.02 cents per unit. The DRP price is $187.62.

The iShares Asia 50 ETF (ASX: IAA) will pay 102.25 cents per unit. The DRP price is $142.61.

The iShares MSCI Emerging Markets ETF (ASX: IEM) will pay 60.22 cents per unit. The DRP price is $81.78.

The iShares Europe ETF (ASX: IEU) will pay 111.47 cents per unit. The DRP price is $101.12.

The iShares MSCI Japan ETF (ASX: IJP) will pay 463.45 cents per unit. The DRP price is $112.01.

The iShares S&P Mid-Cap ETF (ASX: IJH) will pay 20.52 cents per unit. The DRP price is $50.12.

The iShares S&P Small-Cap ETF (ASX: IJR) will pay 72.41 cents per unit. The DRP price is $183.87.

The iShares Global Consumer Staples ETF (ASX: IXI) will pay 70.97 cents per unit. The DRP price is $96.03.

The iShares Global Healthcare ETF (ASX: IXJ) will pay 72.35 cents per unit. The DRP price is $144.79.

The iShares S&P China Large-Cap ETF (ASX: IZZ) will pay 47.14 cents per unit. The DRP price is $56.91.

More dividends to come

If you hold iShares ETFs comprised of ASX shares, you will receive your dividend payments on 19 January.

Blackrock finalised the amounts to be paid this week.

Some examples of these ETFS include the iShares Core S&P/ASX 200 ETF (ASX: IOZ), which will pay 18.37 cents per unit.

iShares S&P/ASX 20 ETF (ASX: ILC) will pay 19.91 cents per unit.

iShares S&P/ASX Small Ordinaries ETF (ASX: ISO) will pay 4.78 cents per unit.

iShares Yield Plus ETF (ASX: IYLD) will pay investors 38.01 cents per unit.

iShares 15+ Year Australian Government Bond ETF (ASX: ALTB) will pay 64.48 cents per unit.

iShares S&P/ASX Dividend Opportunities ESG Screened ETF (ASX: IHD) will pay 14.52 cents per unit.

The post Own IVV or IOO ETFs? It's dividend payday for you! appeared first on The Motley Fool Australia.

iShares is a family of ETFs (Exchange-Traded Funds) created and managed by BlackRock, one of the world's largest asset managers.

Here are some of iShares' best performing ASX ETFs over the past 12 months.

iShares Msci South Korea ETF (ASX: IKO)

This ASX ETF tracks the performance of the MSCI Korea 25/50 Index, before fees and expenses. 

The index is designed to measure the performance of Korean large-cap and  mid-cap companies.

The Korean economy saw modest growth in 2025, however this fund was able to capture some of the record breaking exports from last year. 

Electronics, and technology companies in particular rose sharply in 2025. 

These companies make up roughly half of the fund. 

By sector, its largest exposure is to: 

• Information Technology (48.95%)
• Industrials (19.29%)
• Financials (10.35%)

In fact, the country's annual exports exceeded $700 billion for the first time. This was largely on the back of semiconductor demand.

Semiconductors play an important role in the AI landscape.

This all contributed to a fantastic year for this ASX ETF which is now up more than 80% in the last 12 months. 

iShares International Equity ETFs – iShares Asia 50 ETF (ASX: IAA)

This more broad – Asia tracking ASX ETF enjoyed strong returns for many of the same reasons. 

This fund from iShares aims to track the performance of the S&P Asia 50 Index, before fees and expenses. 

The index is designed to measure the performance of 50 of the largest Asian companies domiciled in China, Hong Kong, South Korea, Singapore, and Taiwan. 

It has a strong exposure to Taiwan Semiconductor Manufacturing (NYSE: TSM) company which rose more than 50% in the last year. 

This one holding makes up more than a quarter of the fund by weighting. 

There are currently 52 holdings in total. 

In the last 12 months, this ASX ETF has risen by an impressive 41%. 

iShares International Equity ETFs – iShares Europe ETF (ASX: IEU)

Changing continents, this ASX ETF aims to track the performance of the S&P Europe 350 Index, before fees and expenses. 

The index is designed to measure the performance of large capitalisation equities and covers 16 major developed European markets.

Geographically, this funds' largest exposure is to:

• United Kingdom (23.51%)
• France (15.94%)
• Switzerland (14.42%)
• Germany (14.32%)

It is up more than 21% since this time last year. 

The post The best performing iShares ASX ETFs last year appeared first on The Motley Fool Australia.

The ETFs, which all hold international shares, include iShares S&P 500 ETF (ASX: IVV) and iShares Global 100 ETF (ASX: IOO).

According to the final distributions schedule, BlackRock will pay ASX ETF investors next Friday, 9 January.

BlackRock has also announced the unit price for each ETF's distribution reinvestment plan (DRP).

Here are the details below.

Dividend amounts for iShares ASX ETF investors

Here is a summary of the dividend amounts that investors in these iShares ETFs will receive on 9 January.

The iShares S&P 500 ETF (ASX: IVV) will pay 20.139782 cents per unit. The DRP price is $68.66.

The iShares Global 100 ETF (ASX: IOO) will pay 56.022206 cents per unit. The DRP price is $187.62.

The iShares Asia 50 ETF (ASX: IAA) will pay 102.246930 cents per unit. The DRP price is $142.61.

The iShares MSCI Emerging Markets ETF (ASX: IEM) will pay 60.218221 cents per unit. The DRP price is $81.78.

The iShares Europe ETF (ASX: IEU) will pay 111.471175 cents per unit. The DRP price is $101.12.

The iShares MSCI Japan ETF (ASX: IJP) will pay 463.446530 cents per unit. The DRP price is $112.01.

The iShares S&P Mid-Cap ETF (ASX: IJH) will pay 20.521395 cents per unit. The DRP price is $50.12.

The iShares S&P Small-Cap ETF (ASX: IJR) will pay 72.410620 cents per unit. The DRP price is $183.87.

The iShares Global Consumer Staples ETF (ASX: IXI) will pay 70.973956 cents per unit. The DRP price is $96.03.

The iShares Global Healthcare ETF (ASX: IXJ) will pay 72.347038 cents per unit. The DRP price is $144.79.

The iShares S&P China Large-Cap ETF (ASX: IZZ) will pay 47.139823 cents per unit. The DRP price is $56.91.

More dividend announcements to come

BlackRock will announce the estimated dividends for a second group of ETFs, which all hold ASX shares, on 6 January.

Those ETFs will include the iShares Core S&P/ASX 200 ETF (ASX: IOZ) and the iShares S&P/ASX 20 ETF (ASX: ILC).

The ex-dividend date will be 7 January.

BlackRock will announce the finalised distribution amounts on 8 January and send payments to investors on 19 January.

The post Own IVV or IOO ETFs? Here's your next dividend appeared first on The Motley Fool Australia.

But a new report from Canaccord Genuity Australia has reinforced the case for targeting stocks outside the Australian and US markets. 

Tony Brennan, Chief Investment Strategist, said until this year, being concentrated in US equities within international portfolios produced better returns.

But this year, the US has underperformed the rest of the world, illustrating the benefits of being more diversified.

US stocks have provided prolonged success

In the report from Canaccord Genuity Australia, the firm reinforced the success investors have had by targeting US stocks, particularly technology shares.

Brennan said this has been supported by a generally solid economy and boosted by a large corporate tax cut during the first Trump Administration. 

In the last decade, Europe had to contend with fiscal restraint after its sovereign debt crisis in 2012, the rupture of Brexit in 2016, and the war in Ukraine since 2022. 

Changing tides

Although the US and the rest of the world have faced different challenges over the past decade, this year both sides were hit by the same shock: the new US tariffs and resulting trade war.

Despite initial fears, after nine months it's clear that economic damage from tariffs has been less severe than anticipated. Additionally, growth across major economies has held up better than expected.

The report also indicated that a key change this year is that the gap between US economic growth and growth in other major regions has narrowed.

International stock picks

The report highlighted 9 international stocks that the firm believes offer exposure to similar structural growth themes as US peers, while providing valuation alternatives. 

After their remarkable success, many of the large US companies, particularly the large US tech stocks, are quite well known and well held by investors. So, in this report we highlight some major companies in other markets that could provide desired diversification for Australian investors.

The 9 international stocks are: 

• HSBC Holdings PLC (UK)
• Airbus SE (France)
• ASML Holding NV (Netherlands)
• L'Oreal SA (France)
• Roche Holding AG Genussscheine (Switzerland) 
• SAP SE (Germany)
• Siemens AG (Germany)
• Sony Group Corp (Japan)
• Tencent Holdings Ltd (Hong Kong). 

The report said Airbus, ASML, SAP, and Siemens deliver access to industrial automation, semiconductor infrastructure, and aerospace duopolies with strong pricing power. 

L'Oréal and Roche represent defensive quality with global market leadership in beauty and healthcare, delivering stable earnings with reduced cyclicality. 

Sony and Tencent provide exposure to Asian technology platforms at more attractive valuations than US counterparts.

HSBC offers global banking exposure at modest valuations relative to US and Australian banking peers.

How to gain exposure 

Investors looking to gain exposure to these international stocks can target each one individually. 

However, there are also ASX ETFs that include many of these companies. 

For example, the Vanguard FTSE Europe Shares ETF (ASX: VEQ) includes 7 of these companies that are based in Europe/UK.

This is the same for the iShares Europe ETF (ASX: IEU). 

Both funds are up 20% or more in 2025. 

The post Expert says target these 9 international stocks appeared first on The Motley Fool Australia.

Today, let's look at some of the best performing funds managed by iShares. 

iShares is the exchange-traded fund (ETF) brand owned by BlackRock, the world's largest asset manager. 

In the context of the Australian Securities Exchange (ASX), iShares offers a range of ETFs that provide Australian investors with access to local and global markets.

iShares International Equity ETFs – iShares China Large-Cap ETF (ASX: IZZ)

As the name suggests, this fund is designed to measure the performance of 50 of the largest and most liquid Chinese companies which trade on the Hong Kong Stock Exchange.

Its largest holdings are Tencent Holdings (8.69% weighting) and Xiaomi Corp (8.5%). 

In the last year, the fund has risen an impressive 41.01%. 

This fund could suit investors seeking direct exposure to China's large-cap companies without picking individual stocks, particularly those who believe in China's long-term growth and expanding middle class. 

It could be ideal for diversifying a global or Australian portfolio with an emerging markets tilt, provided the investor is comfortable with the regulatory and political risks associated with Chinese equities.

iShares International Equity ETFs – iShares Europe ETF (ASX: IEU)

Many Australian investors may not be aware that European focussed ETFs such as IEU outpaced the S&P 500 Index (SP: .INX) over the last year. 

The IEU fund tracks the performance of the S&P Europe 350 from 16 major developed European markets.

In the past year it has grown 16.32%. 

Its largest geographical exposure is to the United Kingdom (23.13%), France (16.8%), Germany (15.49%) and Switzerland (14.3%). 

It could suit investors seeking to diversify their portfolio internationally with relatively stable, mature markets, and who believe in the long-term strength of European industrials, financials, and consumer companies.

iShares International Equity ETFs – iShares MSCI EAFE ETF (ASX: IVE)

This fund has a diverse portfolio with a broad range of companies in Europe, Australia, Asia, and the Far East. 

None of the holdings make up more than 2% of the fund, with the largest exposure being to the financial and industrials sectors. 

It is up 13.40% over the last year. 

It could benefit investors aiming to diversify beyond Australia and the U.S., while staying within the relative stability of developed markets.

The post Best performing iShares ASX ETFs in the last year appeared first on The Motley Fool Australia.

Let's take a look at how much you'll receive.

If you chose to participate in the distribution reinvestment plan (DRP) for any of these iShares ETFs, we've provided the DRP prices, too.

It's dividend day for IVV ETF investors and others

Here is a summary of the dividend amounts that people invested in these iShares ETFs will receive today.

The iShares S&P 500 ETF (ASX: IVV) will pay 17.371762 cents per unit. The DRP price is 62.963308 cents.

The iShares Global 100 ETF (ASX: IOO) will pay 144.788408 cents per unit. The DRP price is 162.474210 cents.

The iShares Core S&P/ASX 200 ETF (ASX: IOZ) will pay 28.004199 cents per unit. The DRP price is 34.308186 cents.

The iShares Asia 50 ETF (ASX: IAA) will pay 317.017910 cents per unit. The DRP price is 120.104281 cents.

The iShares Core Composite Bond ETF (ASX: IAF) will pay 71.863797 cents per unit. The DRP price is 103.551430 cents.

The iShares MSCI Emerging Markets ETF (ASX: IEM) will pay 73.321424 cents per unit. The DRP price is 73.626987 cents.

The iShares Europe ETF (ASX: IEU) will pay 201.329885 cents per unit. The DRP price is 95.752689 cents.

The iShares MSCI South Korea ETF (ASX: IKO) will pay 142.553569 cents per unit. The DRP price is 111.875719 cents.

The iShares S&P/ASX 20 ETF (ASX: ILC) will pay 35.765356 cents per unit. The DRP price is 32.314116 cents.

But wait, there's more…

The iShares Government Inflation ETF (ASX: ILB) will pay 45.856295 cents per unit. The DRP price is 126.033139 cents.

The iShares MSCI Japan ETF (ASX: IJP) will pay 99.526157 cents per unit. The DRP price is 114.127567 cents.

The iShares S&P Mid-Cap ETF (ASX: IJH) will pay 15.907814 cents per unit. The DRP price is 47.288231 cents.

The iShares S&P Small-Cap ETF (ASX: IJR) will pay 56.095190 cents per unit. The DRP price is 167.136029 cents.

The iShares S&P/ASX Small Ordinaries ETF (ASX: ISO) will pay 5.747119 cents per unit. The DRP price is 4.931342 cents.

The iShares Global Consumer Staples ETF (ASX: IXI) will pay 103.428384 cents per unit. The DRP price is 98.952519 cents.

The iShares Global Healthcare ETF (ASX: IXJ) will pay 135.427098 cents per unit. The DRP price is 130.135897 cents.

How did ASX IVV perform in FY25?

The IVV ETF seeks to track the performance of the S&P 500 Index (SP: .INX) before fees.

US shares outperformed ASX shares again in FY25, and IVV ETF investors reaped the benefits.

The IVV ETF increased by 15.02% and delivered total returns (including dividends) of 15.13%, according to BlackRock.

Data from S&P Global shows the S&P 500 rose by 13.63% to close at 6,204.95 points on 30 June.

If we add dividends, the S&P 500's total gross return for the year was 15.16%.

The difference between the growth rate of the S&P 500 and the IVV ETF represents the impact of the currency exchange.

In Australian dollar terms, S&P Global data shows the S&P 500 rose by 15.8%, with total gross returns of 17.36%.

The post Own IVV ETF or other iShares ASX ETFs? It's dividend payday for you! appeared first on The Motley Fool Australia.

According to the final distributions schedule, iShares will pay investors next Friday, 11 July.

A distribution reinvestment plan (DRP) is available for all iShares ETFs.

iShares has also announced the DRP prices for this next round of distributions. We have included those amounts below.

It's payday for IVV ETF investors and others

Here is a summary of the dividend amounts that people invested in this selection of iShares ETFs will receive on 11 July.

The iShares S&P 500 ETF (ASX: IVV) will pay 17.371762 cents per unit. The DRP price is 62.963308 cents.

The iShares Global 100 ETF (ASX: IOO) will pay 144.788408 cents per unit. The DRP price is 162.474210 cents.

The iShares Core S&P/ASX 200 ETF (ASX: IOZ) will pay 28.004199 cents per unit. The DRP price is 34.308186 cents.

The iShares Asia 50 ETF (ASX: IAA) will pay 317.017910 cents per unit. The DRP price is 120.104281 cents.

The iShares Core Composite Bond ETF (ASX: IAF) will pay 71.863797 cents per unit. The DRP price is 103.551430 cents.

The iShares MSCI Emerging Markets ETF (ASX: IEM) will pay 73.321424 cents per unit. The DRP price is 73.626987 cents.

The iShares Europe ETF (ASX: IEU) will pay 201.329885 cents per unit. The DRP price is 95.752689 cents.

The iShares MSCI South Korea ETF (ASX: IKO) will pay 142.553569 cents per unit. The DRP price is 111.875719 cents.

The iShares S&P/ASX 20 ETF (ASX: ILC) will pay 35.765356 cents per unit. The DRP price is 32.314116 cents.

Here are some more ASX ETFs…

The iShares Government Inflation ETF (ASX: ILB) will pay 45.856295 cents per unit. The DRP price is 126.033139 cents.

The iShares MSCI Japan ETF (ASX: IJP) will pay 99.526157 cents per unit. The DRP price is 114.127567 cents.

The iShares S&P Mid-Cap ETF (ASX: IJH) will pay 15.907814 cents per unit. The DRP price is 47.288231 cents.

The iShares S&P Small-Cap ETF (ASX: IJR) will pay 56.095190 cents per unit. The DRP price is 167.136029 cents.

The iShares S&P/ASX Small Ordinaries ETF (ASX: ISO) will pay 5.747119 cents per unit. The DRP price is 4.931342 cents.

The iShares Global Consumer Staples ETF (ASX: IXI) will pay 103.428384 cents per unit. The DRP price is 98.952519 cents.

The iShares Global Healthcare ETF (ASX: IXJ) will pay 135.427098 cents per unit. The DRP price is 130.135897 cents.

The post Own IVV ETF or other iShares ASX ETFs? Next dividends and DRP prices revealed… appeared first on The Motley Fool Australia.

The 10% gain over the last 12 months is nothing to complain about. However there were international markets that brought investors even better returns. 

ASX exchange traded funds (ETFs) can be a useful vehicle to gain exposure to these markets outside of Australia. 

Let's look at some that beat the Australian market in the last financial year.

iShares Asia 50 ETF (ASX: IAA) 

This fund aims to provide investors with the performance of the S&P Asia 50 Index. This index is 50 of the largest Asian companies in China, Hong Kong, South Korea, Singapore, and Taiwan. 

It may interest Aussie investors looking to gain exposure to the Asian tech sector. This makes up approximately 42% of the fund. 

This includes the likes of Tencent, Samsung, and Alibaba.

In FY25, this fund rose an impressive 25%. 

iShares Europe ETF (ASX: IEU)

As the name suggests, this fund aims to track the performance of large capitalisation equities of the 16 major developed European markets. 

It includes global leaders like Nestlé, LVMH, Roche, and Unilever.

Its three largest sectors by exposure include financials (23.2%), industrials (18.99%) and healthcare (13.42%). 

This fund could attract Australian investors looking for exposure in these sectors which are largely underrepresented in the Australian market.

In the previous financial year this fund rose 18%. 

Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)

A fund that may not be on everyone's radar is the Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE). 

The ETF provides low-cost exposure to companies listed on emerging markets, allowing investors to participate in the long-term growth potential of these economies.

It is heavily diversified, with more than 5,000 holdings making up the fund. 

With a large exposure to Asian markets, it includes companies from countries from China, India, Taiwan, Brazil, Saudi Arabia and South Africa.

It has risen 14.72% in the last month. 

iShares S&P 500 ETF (ASX: IVV)

A popular ETF for its exposure to the largest companies in the US market, iShares S&P 500 ETF (ASX: IVV), the fund tracks the performance of the S&P 500 Index (SP: .INX). 

It includes companies like Apple (NASDAQ: AAPL), Microsoft Corp (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Tesla (NASDAQ: TSLA), Alphabet (NASDAQ: GOOGL), and Nvidia Inc (NASDAQ: NVDA).

Over the last year, it has risen 15.50%

The post Which international ASX ETF performed the best in FY25 appeared first on The Motley Fool Australia.

While the ASX is home to some high-quality companies, global exposure can help reduce risk and unlock greater growth opportunities. The good news is that Aussie investors don't need to buy international shares directly to gain this exposure.

Instead, exchange-traded funds (ETFs) provide an easy and cost-effective way to invest in the world's biggest markets, industries, and megatrends—all from the ASX.

Here are five options for investors to look deeper into this week:

Vanguard MSCI Index International Shares ETF (ASX: VGS)

One of the best options for broad global exposure could be the Vanguard MSCI Index International Shares ETF. This ETF tracks the MSCI World Index, which includes around 1,500 large- and mid-cap stocks from 23 developed markets. It gives investors exposure to some of the biggest and most successful companies in the world, including Apple, Microsoft, and Nestlé. With diversification across multiple sectors and countries, the VGS ETF could be a strong choice for those wanting to invest internationally with minimal effort.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

For investors looking to tap into the world's biggest tech giants, the BetaShares Nasdaq 100 ETF is a good option. This ASX ETF gives exposure to the 100 largest non-financial companies listed on the Nasdaq stock exchange, including high-growth tech giants like Apple, Amazon, NVIDIA, and Tesla. The Nasdaq 100 has historically outperformed many global indices over the long term, driven by innovation in AI, cloud computing, and e-commerce. The NDQ ETF offers a way for investors to ride the wave of technological disruption and capitalise on companies leading the digital revolution.

iShares Asia 50 ETF (ASX: IAA)

Emerging markets in Asia continue to be a major driver of global economic growth, and the iShares Asia 50 ETF provides exposure to some of the region's biggest and most dominant companies. This ETF tracks the top 50 Asian stocks, with holdings in China, Taiwan, Hong Kong, and South Korea. The fund includes major names such as Alibaba, Tencent, and Taiwan Semiconductor Manufacturing Company (TSMC), all of which are shaping the future of technology and e-commerce. Asia's rapidly growing middle-class populations and booming tech industries make it an attractive investment destination, and the IAA ETF provides a simple way to access these high-growth markets.

Global X FANG+ ETF (ASX: FANG)

For those who want to invest in the world's most powerful tech and internet companies, the Global X FANG+ ETF is worth considering. This ASX ETF tracks the performance of ten of the biggest and most influential technology stocks, including Facebook (Meta), Netflix, Google (Alphabet), Amazon, and other major tech disruptors. These companies have strong competitive advantages, global reach, and are leaders in the digital economy. While the FANG+ Index has historically delivered high returns, investors should be mindful that it also comes with greater volatility. However, for those looking for exposure to high-growth tech names, this fund offers a focused way to gain access to these industry giants.

iShares Europe ETF (ASX: IEU)

While many investors focus on the US and Asia, Europe is home to some of the world's biggest and most well-established businesses. The iShares Europe ETF provides exposure to 350 of Europe's largest companies across a variety of sectors. It includes global leaders like Nestlé, LVMH, Roche, and Unilever, all of which have strong brand power and international presence. Europe offers a unique investment opportunity, particularly in industries such as healthcare, industrials, and luxury goods, which are underrepresented in the Australian market. For investors looking to balance their portfolios with geographic diversity, the IEU ETF could be a solid choice.

The post 5 ASX ETFs for global investing in 2025 and beyond appeared first on The Motley Fool Australia.

However, the start to the year has been bumpy for the US stock market. For context, the NASDAQ-100 Index (NASDAQ: NDX) is down roughly 6% to start the year.

But a couple of down months for US stocks doesn't mean investors should dump their holdings and run for the hills. History tells us there will be a bounce back. It's a matter of "when" it happens rather than "if" it happens. 

Nonetheless, if you are looking for exposure to international markets, here are three options to consider that have all had strong starts to the year. 

Vanguard All-World ex-US Shares Index ETF (ASX: VEU)

This ETF provides exposure to many of the world's largest companies listed in major developed and emerging countries outside the US.

With over 3,000 holdings included in the fund, it is mostly focused on large market-cap companies. 

It has a large exposure to these markets: 

• Japan: 15.9%
• United Kingdom: 9.4%
• China: 8.4%
• Canada: 6.4
• France: 6.6%

The fund has provided solid returns over the last five years, up 52.03% during that time, including gaining 5.78% so far in 2025. 

Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE)

For those targeting Asian markets, VAE provides exposure to securities listed in Asia, excluding Japan, Australia and New Zealand.

It currently has more than 1,600 holdings, with its largest exposure being to these markets: 

• China: 31.8%
• India: 21.9%
• Taiwan: 21.5%
• Korea: 10.3%
• Hong Kong: 5%

Over the past 5 years, the fund is up 33.12%, including a 3.84% rise in 2025. 

iShares International Equity ETFs – iShares Europe ETF (ASX: IEU)

For investors monitoring shares in the EU, this ETF aims to provide investors with the performance of the S&P Europe 350. 

The S&P Europe 350 is a stock market index designed to represent the performance of large and mid-cap companies across Europe. 

IEU has a large exposure to companies in: 

• United Kingdom: 23.17%
• France: 17.10%
• Germany: 14.97%
• Switzerland: 14.94%
• Netherlands: 6.95%

IEU has grown 74.52% over the past 5 years, including more than 11% since the start of the year.  

The post Had enough of US volatility? 3 international ASX ETFs to consider appeared first on The Motley Fool Australia.

But let's talk about some ASX exchange-traded funds (ETFs) that can say the same.

Alongside ASX 200 shares, there has been a huge swath of ETFs that have seen new 52-week highs this Thursday. We won't go over them all, but here are 12 of the most prominent funds to hit new high watermarks:

12 ASX ETFs at new 52-week highs today

Here are the 12 ETFs that have just clocked new 52-week highs this Thursday:

*at the time of writing

Why are these funds at new highs today?

As you can see above, we have a very healthy mix to discuss. Typically, when we see a bunch of ETFs hit new highs, they are correlated to a particular asset class or market.

When the US markets reach new records, for example, the funds that hold mostly or solely American stocks usually follow suit.

But today, it's different.

We have your standard ASX index funds like IOZ and ILC at new highs.

But we also have some thematic, global funds – HACK, ASIA, ROYL and GXAI – there too.

We have some index funds, too. IEU and F100 both track international markets, the United Kingdom and Europe, to be specific. It is interesting to note that the European markets are hitting new highs at the same time that the UK-based F100 is.

Here on the ASX, it's no surprise to see IOZ and ILC at new heights, given the new record that the ASX 200 Index hit this morning. That was helped enormously by Commonwealth Bank of Australia (ASX: CBA)'s new record high itself, alongside multi-year highs for Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB).

So a great day for ETF owners. Let's see what tomorrow brings.

The post 12 ASX ETFs at new 52-week highs this Thursday appeared first on The Motley Fool Australia.

Investors put in the highest-ever amount of dollars into local ETFs in October, but some products fared far better than others.

A BetaShares report showed cash, bond and fixed interest ETFs featured prominently among the top 10 ETFs that saw the largest inflow of cash last month. 

This perhaps indicated some anxiety with investors about the US election result and sky-high share valuations.

Top 10 hottest Australian ETFs

ETF pioneer Vanguard dominated the top of the charts. 

Its Vanguard Australian Shares Index ETF (ASX: VAS), Vanguard Global Aggregate Bond Index (Hedged) ETF (ASX: VBND), Vanguard Msci Index International Shares Etf (ASX: VGS), and Vanguard Australian Fixed Interest Index ETF (ASX: VAF) collectively brought in about $478 million for the company.

But the most attractive fund of October, iShares Core S&P/Asx 200 Etf (ASX: IOZ), alone pulled in a stunning $326 million of investor funds.

Top 10 coldest Australian ETFs

At the other end of the charts, foreign assets seemed to go out of favour with Australian ETF investors.

The trend could be a validation of the successful suppression of COVID-19 in Australia while the northern hemisphere copped a third wave as it headed into the colder months.

iShares Edge MSCI World Multifactor ETF (ASX: WDMF), iShares MSCI South Korea ETF AUD (ASX: IKO), BetaShares US Dollar ETF (ASX: USD), iShares Europe ETF AUD (ASX: IEU) and Platinum International Fund (Quoted Managed Hedge Fund) (ASX: PIXX) all suffered significant outflows.

BetaShares itself had $34.8 million pulled out of its BetaShares Australian Resources Sector ETF (ASX: QRE), which was the 2nd highest amount.

It's often hard to pinpoint the exact reasons for outflows from a particular ETF, BetaShares head of strategy Ilan Israelstam told The Motley Fool.

"Investors will have their own motivations for increasing or reducing their positions," he said.

"On QRE in particular, our suspicion is that most of the selling was due to investors taking profits, given QRE was up around 34% from its lows in March."

Betashares and AMP Limited (ASX: AMP) recently closed down a trio of ETFs they jointly operate due to a lack of investor interest. Those funds will trade on the ASX for the last time on 4 December.

The last two months have been the only time in history that the Australian ETF industry saw more than $2 billion come inwards each month.

Local ETFs collectively manage $73.8 billion, which is another all-time record.

The post 10 hottest (and coldest) Aussie ETFs right now appeared first on The Motley Fool Australia.

What is 'diversification'?

Diversification in its essence refers to spreading out your capital among different investments to mitigate risk. It is certainly a theory that has merit. One of the founders of modern portfolio theory (a prominent theory of how markets operate that we Fools often disagree with), Harry Markowitz, famously called diversification "the only free lunch in finance". And to some extent that's true. It is possible to 'diversify' a portfolio in a way that boosts your potential returns without increasing the risk of losing your money.

The idea is that by spreading out your capital, you reduce the chances of a single event, whether that be relating to an individual company or an entire market (e.g. Australia), from decimating your portfolio. Take an investor who has all of their wealth in Sydney property. Well, that investor is highly exposed to a disruption in that one single market. If that investor sold a house or two and invested the profits in ASX shares, their diversification would increase. This is an example of when diversification is probably a wise and prudent thing to do.

But what about a pure portfolio of ASX shares?

Di-worse-ification

Well, I think some investors do get a little carried away with diversification. We Fools like to advocate that all active investors get to a point where they have 15-20 different and uncorrelated ASX shares for diversification purposes. We also think that adding a few international shares is a good idea as well, just in case the entire Australian economy is hit with some kind of black swan event.

But you could take it a lot further. ASX shares are just one asset class of many. There are also government bonds, corporate bonds, precious metals, property, cryptocurrencies and cash to consider. There's also a range of more eccentric investment options too, like collectables, fine wine, art.. .the list goes on.

And in the world of shares, there are also countless options. Every exchange-traded fund (ETF) provider on the market will tell you that buying their ETF is a good idea for diversification. Why stop at ASX and US shares? Why not get exposure to European shares with the iShares Europe ETF (ASX: IEU)? Or Asia with the Vanguard FTSE Asia ex-Japan Shares Index ETF (ASX: VAE)?. Or the 'Far East' with the iShares MSCI EAFE ETF (ASX: IVE)? You get the idea… Going down this path won't lead to a good long-term outcome in my view.

Foolish takeaway

There are literally thousands of ETF combinations you could have in your portfolio, but there does come a point when you're changing the oil in a rental car, so to speak. I don't think you really gain much benefit from holding a portfolio of 20 diversified companies against a portfolio of 1,000 companies, or a collection of ETFs covering every corner of the investing world. If you choose to invest passively, just one market-wide ETF does give you quite a lot of diversification. And if you actively invest, I think you can get as much balance as you need with a portfolio of 15-20 shares (perhaps with some international ones thrown in for good measure). So don't get too carried away with diversification, you might end up diversifying your profits if you do!

The post Is your ASX share portfolio too diversified? appeared first on The Motley Fool Australia.

Here we look at 4 investment trends that could play out in 2020.

European resurgence

Europe has been overlooked and undervalued by global investors for years, but this trend could be set for a reversal in 2020. As uncertainty around Brexit decreases, Morgan Stanley is predicting expanding multiples in Europe, which is also the only market where multiple expansion is predicted. Investors worldwide are underweight in European equities following more than a year of outflows from the region, with some inflows starting to be seen.

European exposure can be obtained via the iShares Europe ETF (ASX: IEU). This ETF provides exposure to a broad range of European companies across 16 major developed European markets. The fund tracks the performance of the S&P Europe 350 and has delivered a return of 21.32% in the year to 30 November. Distributions are made twice yearly and management fees are 0.60% per annum.

Across Europe, 26.45% of the funds securities are from the UK, 17.68% from France, 15.44% from Switzerland, and 13.58% from Germany. The remainder were spread across the Netherlands, Spain, Sweden, Italy, Denmark, Belgium, and other locales. Top holdings include Nestle (3.50%), Novartis (2.65%), Roche Holdings (2.45%), and HSBC Holdings (1.73%).

Income and defensive shares

Political uncertainty, economic slowdown, and recession fears mean safe stocks that pay reliable dividends could be in demand from investors seeking refuge in 2020. Quality, however, will be key. In 2019 we saw companies traditionally known for their dividend payments including National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) forced to cut dividends in the wake of disappointing earnings results and regulatory costs.

Investors seeking safety should consider companies that provide vital goods and services that are less likely to see a sudden drop in demand or be the target of political attacks. Large and diversified businesses that operate across multiple markets and/or geographies can offset weakness in one market or area with strength in another. Examples could include large pharmaceutical and healthcare providers such as CSL Limited (ASX: CSL) and Ramsay Health Care Limited (ASX: RHC). Other potential dividend shares include health insurer Medibank Private Ltd (ASX: MPL), and energy provider AGL Energy Limited (ASX: AGL).

Digital dominance and the rise of AI

Bank of America has predicted that the current trade war between America and China will transition into a 'technology war' as the superpowers compete to reach technological superiority. Key areas of competition will include artificial intelligence and robotics, Cybersecurity, quantum computing, big data, and 5G.

According to Bank of America, China's annual mobile data traffic could grow at 56% compared to the 35% growth predicted for the United States. Combined with favourable policies and government backing, Chinese technology companies such as Alibaba and Tencent may be better positioned to take advantage of the artificial intelligence revolution, at the expense of United States FAANG stocks (Facebook, Amazon, Apple, Netflix, and Alphabet). In Australia, Appen Ltd (ASX: APX), which provides training data for machine learning, is well placed to take advantage of this trend.

Robotics and automation is another key theme to watch this in 2020, with the potential to jeopardise up to 50% of jobs worldwide by 2035. The ETFS ROBO Global Robotics and Automation ETF (ASX: ROBO) provides exposure to this theme and tracks the ROBO Global Robotics and Automation Index. The ETF returned were 20.53% in the year to 30 November. Management fees are 0.69% per annum and distributions are made annually.

Holdings are distributed across the United States (44.2%), Japan (22.4%), Germany (9.1%), Taiwan (5.7%), Switzerland (3.4%), United Kingdom (3.3%), China (2.3%), Sweden (2.1%), France (2.0%), South Korea (1.7%) and elsewhere. Top holdings include Brooks Automation (1.84%), Zebra Technologies (1.75%), Krones AG (1.71%), Nvidia Corp (1.68%), Koh Young Technology (1.67%), Fanuc Corp (1.66%), Intuitive Surgical (1.63%), Congnex Corp (1.63%) and Daifuku Co Ltd (1.62%).

Emerging markets

According to Morgan Stanley, a better global growth outlook in 2020 may improve the performance of emerging market equities relative to 2019. For 2020, Morgan Stanley have raised their stance on emerging markets from underweight to equal weight, stating:

Emerging market equities typically perform better during periods of global economic re-acceleration and U.S. dollar weakness. As a result, our earnings forecasts suggest growth of 12% for emerging markets in 2020.

Australian investors can access emerging markets via the ASX using ETFs. The iShares MSCI Emerging Markets ETF (ASX: IEM) provides exposure to 800 plus large and mid-size companies in emerging markets. The fund tracks the performance of the MSCI Emerging Markets Index before fees and expenses. The ETF returned 13.95% in the year to 31 October. Management fees are 0.67% and distributions are made twice annually.

The fund held stocks across China (31.78%), South Korea (12.17%), Taiwan (11.88%), India (8.94%), Brazil (7.66%), South Africa (4.65%), Russia (4.09%), and elsewhere. Top holdings include Alibaba (4.49%), Taiwan Semiconductor Manufacturing (4.32%), Tencent Holdings (4.18%), Samsung Electronics (3.69%), and China Construction Bank (1.38%).

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE) provides investors with exposure to more than 5,000 companies in emerging economies. The ETF tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with dividends reinvested) in Australian dollars before fees, costs and taxes. The ETF returned 26.04% in the year to 31 October. Management fees are 0.48% per annum and distributions are made quarterly.

Assets are spread across China (35.2%), Taiwan (14.7%), India (10.9%), Brazil (8.6%), and South Africa (5.3%). Top holdings include Alibaba (4.10%), Tencent Holdings (3.85%), Taiwan Semiconductor Manufacturing (2.46%), China Construction Bank (1.23%), Reliance Industries (1.06%), and Ping An Insurance Group Co of China.

Foolish takeaway

As uncertainty around Brexit and US–China trade tension recede, 2020 may be a year where sectors of the market neglected over the past few years come to the fore. Yet political ambiguity remains a concern for global markets, particularly in the US.

The post 4 investment trends for 2020 that you should know about appeared first on The Motley Fool Australia.

1. Start with your goals

The first step on your investment journey should be to figure out your goals. What are you investing for? It could be to build your net worth, create a second income stream, save for retirement, or a number of other things. Your goals, time horizon, and risk tolerance will influence your investment choices.

Those with a longer time horizon may be able to take on riskier investments as they have a longer period to make up for any losses. People with shorter time horizons may choose more conservative investments in order to avoid risking capital. It is generally recommended that those investing in ASX shares have a time horizon of at least 5-7 years. This allows investors to ride out fluctuations in the market.

2. Know your risk profile

Understand how you tolerate the risks associated with investing. With any sharemarket investment, there is a chance of losing capital if share prices decline. There is also a chance of making a capital gain where prices increase. Some people will be comfortable taking on more risk if they believe the potential return is worth it. Others will prefer a more conservative investment strategy utilising lower risk investments, such as bonds.

Your risk profile will vary over your lifetime – when you are in the accumulation phase of life you can afford to take greater risks. As you near retirement you will likely reduce your allocation to risky assets as the consequences of a capital loss become more serious.

3. Think about your asset allocation

Figure out how you want to allocate your investment portfolio across different asset classes. This will depend on your timeframe, risk profile, and investment goals. Those looking to grow their net worth with a long time horizon will likely devote a greater proportion of funds to investments such as growth shares. People with shorter time horizons or for whom capital preservation is important will allocate a higher proportion of funds to lower risk assets. Like your risk profile, your asset allocation should shift over time as your goals change and you move through different phases of life.

4. Open a share trading account

Start looking into share trading accounts in the market. From CommSec to Macquarie, to nab trade, there are a wealth of options available. Think about what you want from your share trading account – if trading on the go is important to you might want an easy-to-use app. If keeping up to date is key, look at the notification services offered by different brokerages. Think about how often you plan on trading and look at the fees each brokerage charges for trades. If you're trading frequently fees can add up and eat into your investment returns.

5. Do your research

Start educating yourself about your investment options. Learn about the ASX and the securities that are traded on it. Look into ETFs that may be of interest to you. Begin to map out how you will allocate your funds not just between asset classes, but between individual holdings. Take note of ASX shares that are of interest and start investigating the companies they represent.

If you are looking to create a second income, you will likely consider ASX dividend shares such as National Australia Bank Limited (ASX: NAB), BHP Group Ltd (ASX: BHP), or AGL Energy Limited (ASX: AGL). If you are less concerned about dividends and instead are seeking to build wealth over the long term, growth shares such as Afterpay Ltd (ASX: APT), Xero Limited (ASX: XRO), and Livetiles Lt (ASX: LVT) could be of interest.

6. Don't forget to diversify

Diversification is an important step in managing the risk of your portfolio. In a nutshell, diversification means not putting all your eggs in one basket. This means you should spread your investments across a range of asset classes and individual investments within asset classes. The exact proportions will depend on your investment goals, timeframe, and risk tolerance.

Many investors choose to use ETFs as a quick and easy method of portfolio diversification. ETFs such as the Betashares Australia 200 ETF (ASX: A200) or the iShares Core S&P/ASX 200 (ASX: IOZ) give exposure to the S&P/ASX 200 index in a single trade. Other ETFs can provide exposure to overseas sharemarkets – the Vanguard US Total Market Shares Index ETF (ASX: VTS) provides exposure to US-listed companies while the iShares Europe ETF (ASX: IEU) provides exposure to many of Europe's largest listed companies.

7. Keep watch

Once you've made an investment, keep an eye on it. This doesn't mean obsessively checking the price. What it means is developing an awareness of events which could affect the value of your investment. If you've invested in ASX shares you will want to stay on top of how the underlying companies are performing. Keep abreast of trends affecting industries you are invested in and think ahead as new trends emerge.

Monitor the market for new investment opportunities that meet your investment criteria. You can do this using notification services offered by your brokerage, the financial news media, online investment services, or a combination of methods. Think about how any new investments you might add to your portfolio contribute to your overall investment goals.

8. Remember the value of time

Your most valuable asset for generating investment returns is time. Time allows small companies to grow larger, allows your returns to compound, and allows you to learn and grow as an investor. The value of time cannot be underestimated.

Time is particularly important when it comes to compounding returns on investment. When investments such as shares pay a return in the form of dividends and these returns are reinvested, investors begin to earn returns on returns. These are compounding returns and over time can add up significantly. For example, if you invest $10,000 today and earn a 9% return compounding annually, in 30 years you will have $132,667. Without compounding you would only have $37,000.

Foolish takeaway

By first investing your time and effort you can start investing in a way that works for your goals and preferences. Follow these 8 simple steps to start investing in 2020 and keep reading for three great dividend shares.

The post How to start investing in 2020 appeared first on The Motley Fool Australia.

European and Asian bourses also offer a wide array of investment opportunities. There are more than 3,000 companies listed on London's Stock Exchange, which has a market capitalisation of over $4 trillion.

China features 3 of the world's top 10 stock exchanges by market capitalisation; the Shanghai Stock Exchange with a market capitalisation of over $5 trillion, the Hong Kong Stock Exchange with a market capitalisation of nearly $4.5 trillion, and the Shenzen Stock Exchange with a market capitalisation of more than $3.4 trillion.

It's clear that investing only in Australia leaves out a vast pool of opportunity in the equity investment space. 

International diversification reduces risk

International diversification is a method of reducing portfolio risk. Holding shares across different jurisdictions provides a hedge against the risk of country-specific events impacting the value of a portfolio. This can occur where the government of a country runs an unusually large budget deficit, or a central bank raises interest rates where other central banks don't. Equally, owning securities across jurisdictions can assist where an industry is negatively impacted in one country, but thrives in another.

Developed and emerging markets

When considering investing internationally, both developed and emerging markets should be considered. Developed market exist in countries that are advanced in terms of their economy and financial markets. Examples include the United States, Australia, Canada, and the United Kingdom. Emerging markets refer to economies of developing nations that are becoming more engaged with global markets. Examples include China, India, Mexico and Brazil.

Developed markets are generally considered less risky investments than emerging markets, but may have commensurately lower returns – the MSCI Emerging Market Index has returned 8.63% annually since 2000 while the MSCI World Index returned 5.13% annually over the same period.

Using ETFs for offshore exposure

For investors looking to gain overseas exposure, it is possible to do so without leaving the comfort of the ASX. Numerous exchange traded funds (ETFs) offer international exposure to a range of jurisdictions for the cost of a single trade. Beyond their ease of use, ETFs offer the additional benefit of providing diversification across industries and sectors to further reduce overall risk.

Global

The Vanguard MSCI Index international shares ETF (ASX: VGS) provides exposure to many of the world's largest companies listed in developed economies. The fund aims to track the return of the MSCI World ex-Australia Index (with net dividends reinvested) in Australian dollars before fees, expenses and tax. The fund provided returns of 15.30% per annum for the 3 years to 30 September.

Distributions are made quarterly and management fees are 0.18% per annum. The ETF held 1,589 shares as at 30 September with 64.6% of holdings based in the United States. Other allocations include Japan (8.4%), the United Kingdom (5.6%), France (3.9%), Canada (3.6%), Switzerland (3.2%), and Germany (2.9%).

The top 4 holdings as at 30 September were Apple, Microsoft, Alphabet, and Amazon. Other top 10 holdings included Facebook, JPMorgan, Johnson & Johnson, Nestle, Proctor & Gamble, and Visa.

United States

The Vanguard US Total Market Shares Index ETF (ASX: VTS) provides exposure to some of the world's largest companies listed in the United States. The fund aims to track the CRSP US Total Market Index and has provided returns of 15.95% per annum for the 10 years ending 30 September.

The fund is not hedged, so investors are exposed to fluctuations in the AUD/USD exchange rate. Distributions are made quarterly and management costs are 0.03% per annum. The ETF held 3,624 shares as at 30 September with a median market capitalisation of $75.5 billion. The price-to-earnings (P/E) ratio was 20.3x and the dividend yield was 1.8%.

Sector allocations were divided across technology (20.8%), financials (19.8%), consumer services (13.6%), industrials (13.5%), and healthcare (12.3%). Consumer goods, oil & gas, utilities, basic materials, and telecommunications rounded out the allocations.

Top holdings include Microsoft, Apple, Alphabet, Amazon, Facebook, and Berkshire Hathaway.

Europe

The iShares Europe ETF (ASX: IEU) provides exposure to a broad range of European companies across 16 major developed European markets. The fund tracks the performance of the S&P Europe 350 and has delivered annual returns of 7.08% over the 10 years to 30 September.

Distributions are made twice yearly and management fees are 0.60% per annum. The P/E ratio of the fund was 16.24 at 30 September and the 12 month trailing yield was 2.72%.

Across Europe, 26.68% of the funds securities were from the UK, 17.60% from France, 15.67% from Switzerland, and 13.22% from Germany. The remainder were spread across the Netherlands, Spain, Sweden, Italy, Denmark, Belgium, and other locales. Top holdings include Nestle (3.83%), Novartis (2.62%), Roche Holdings (2.42%), and HSBC Holdings (1.87%).

Asia

The Vanguard FTSE Asia ex-Japan Shares Index ETF (ASX: VAE) provides exposure to listed Asian securities excluding Australia, New Zealand, and Japan. The fund does not hedge the Australian dollar so is exposed to currency fluctuations. Returns were 10.47% per annum for the 3 years ending 30 September.

Distributions are made quarterly and management fees are 0.40% per annum. The fund held 1,208 securities as at 30 September, 36.5% of which were listed in China. The remainder were listed in Korea (13.7%), Taiwan (13.1%), India (11.3%), Hong Kong (11.3%), Singapore (4.0%), Thailand (3.7%), Malaysia (2.8%), Indonesia (2.2%) and the Philippines (1.4%).

The fund allocated 29.4% of funds to financials, with 22.1% going to technology, 11.4% to consumer services and 10% to consumer goods. Top holdings include Tencent Holdings, Alibaba, Samsung Electronics, and Taiwan Semiconductor Manufacturing. 

Emerging markets

The iShares MSCI Emerging Markets ETF (ASX: IEM) provides exposure to over 800 large and mid size companies in emerging markets globally. The fund tracks the performance of the MSCI Emerging Markets Index before fees, and has returned 7.03% per annum over the 5 years to 30 September.

Distributions are made twice yearly and management fees are 0.67% per annum. The fund had a P/E ratio of 12.23 and a 12 month trailing yield of 1.80% at 30 September.

Of the fund's holdings, 31.91% were located in China, 12.05% in South Korea, 11.34% in Taiwan, 8.82% in India, 7.55% in Brazil, 4.81% in South Africa, and 3.99% in Russia. The remainder were spread across Thailand (2.85%) Saudi Arabia (2.56%), Mexico (2.49%), and other jurisdictions (11.64%).

Top holdings include Tencent Holdings (4.48%), Alibaba (4.43%), Taiwan Semiconductor Manufacturing (4.02%), and Samsung Electronics (3.64%). Other top 10 holdings include China Construction Bank (1.36%), Naspers Ltd (1.23%), and China Mobile (0.95%).

Foolish takeaway

The ASX offers a wide variety of worthy investment opportunities. For the sake of diversification, however, it is worth looking beyond Australian shores. Portfolios can rapidly be supplemented with international allocations in as little as a single trade using ETFs traded on the ASX.

The post 4 ASX ETFs you can use to gain global equities exposure appeared first on The Motley Fool Australia.

"I want to invest in shares. Where do I start?"

That's a question I get asked every now and again.

Unfortunately, for one reason or another, some people come to the sharemarket with unrealistic expectations…

Beginner: "I have $2,000. But I want to build up my portfolio slowly and have $100,000 by the end of the year."

Me: "Umm…I think you 'won' too many medals as a child."

Fortunately, most beginners are more grounded and seem up to the challenge of building long-term wealth in the sharemarket – the most rewarding place to park your money over many years.

(good) Beginner: "I have $2,000 and will add $500 a month. Where do I start?"

Me: "Great! Start with some exchange traded funds (ETFs) and go from there."

Here are five investments for (good) beginners.

5 investments for beginners

$500 – ETF – Vanguard's Australian Shares Index Fund ETF

Imagine owning Australia's 300 largest companies in one portfolio. That's the Vanguard Australian Shares ETF. It costs bugger-all for Vanguard to manage the portfolio. And all you have to do is buy and hold. It will pay dividends, too.

Note: On Google Finance it appears at V300AEQ ETF UNITS.

$500 – ETF – Vanguard Total US Market ETF (ASX: VEU)

Imagine America's biggest and best companies rolled into one mega portfolio. That's the Vanguard US Total Market Share Index ETF. It has averaged a 14% return over the past five years. I wouldn't expect that level of returns, but if you reinvest dividends and add money regularly over 10 to 20 years, I believe returns of 7% – 10% on average is achievable.

$500 – ETF – iShares Europe ETF (ASX: IEU)

This ETF tracks Europe's largest companies in just one investment. iShares manages the ETF for a reasonable cost, which is less than the estimated dividend yield. While it is not risk-free, this ETF provides diversified exposure to a market that has underperformed and could be due to bounce back. 

$500 – ASX share – Washington H. Soul Pattinson

I would put $500 in 'Soul Patts'. Soul Patts has a rich history. Although you may never have heard the name it has ownership stakes in some of Australia's best companies, like TPG Telecom Ltd (ASX: TPM) and Priceline Pharmacy. The company pays a reliable dividend to shareholders and could best be described as a 'slow grower'.

The first month – $500 – pick your own investment

If you have $2,000 and plan to add $500 in one month, take a chance at investing in your own idea. It may be a company you are familiar with or one you have just begun reading about.

If you're not that interested in investing – just keep adding to your ETFs!

The post 5 sharemarket investments for ASX beginners appeared first on The Motley Fool Australia.

Why consider ETFs?

Report after report proves that professional fund managers are not worth their extraordinary wages. It's especially true once their fees are taken out of the performance. All-in-all, around 80% of professional investors underperform the market over the long run.

Exchange Traded Funds, or ETFs, have grown rapidly in recent years as more investors are drawn to the simplicity and performance of index funds. For example, an ETF might track a market index like the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) by buying all 200 shares and holding on.

ETFs are simply the 'wrapper' around the fund, enabling investors to get in and out of the fund by buying and selling units on the ASX, like any other share. The ease of access has enabled more people to adopt a buy and hold approach at a very low cost.

However, it should be noted that not all ETFs simply track an index, and there are risks to any investment. For example, Australia's ASX 200 is heavily concentrated to two sectors of the market: financials (aka banks) and resources. That's not very good diversification. 

3 ETFs for sharemarket beginners

If a young person came to me and said they wanted three ideas to buy and hold for the long-term, chances are, these three ETFs would be amongst my best ideas.

Vanguard Australian Shares Index Fund ETF (ASX: VAS)

This fund/ETF simply tracks the ASX 200, buying all 200 shares included in the index. The management fee is 0.14% per year, which is seriously low.

However, as I noted above, the ASX 200 index is very narrow and concentrated, with the likes of Commonwealth Bank of Australia (ASX: CBA) and its big bank brethren making up a large chunk of the fund. That makes it riskier than other ETFs, in my opinion.

For that reason, I think investors should look towards other ETFs, including the…

iShares Global Consumer Staples ETF (ASX: IXI)

This ETF tracks the 1,200 largest global consumer staples companies, like Nestle and Procter & Gamble. The management fee is 0.47% per year, which is not exactly cheap, but the ETF is expected to pay 2% in dividends, offers global diversification and exposure to the US dollar. A cheaper and slightly different alternative might be Vanguard's International Shares Index Fund ETF (ASX: VGS) — I recently bought the hedged version for my little sister. 

iShares Europe ETF (ASX: IEU)

With the extraordinary growth in US markets coinciding with geopolitical woes in Europe, many investors may shudder when they see me recommending a European-focused ETF. However, I think this ETF, which tracks 350 of the largest European companies, offers exposure to an underserved market. While it is a little expensive at 0.6% per year, it would be worthy of a small investment for the long haul.

Foolish Takeaway

ETFs are a great way to access a diversified basket of shares with just one investment. But it's important to note that not all ETFs are created equal and many are not just passive index-trackers like the three listed above. In my opinion, these three ETFs could form a core holding in a young person's portfolio. However, I would add to that some other ETFs, managed funds and direct shareholdings for a perfect portfolio.

The post 3 ASX ETFs for sharemarket beginners appeared first on The Motley Fool Australia.

Huh?

What?

If you are confused by those names, don't worry, I am too. They are Google's names for three of Australia's leading ETFs.

What is an ETF?

ETF stands for Exchange Traded Fund. They are managed funds which trade on the stock exchange. Investors buy and sell ETFs like normal shares. However, ETFs are not businesses, they are pools of money managed by a company.

Often, computers stand behind the ETF and direct an investor's money into a pool with other investors which is then, for example, used to buy all of the shares included in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). So, with just one investment the investor gets exposure to 200 companies. ETFs pays distributions which are the sum of all dividends paid by the companies and if the ETF's price goes up — you benefit. Just like a normal share.

However, some ETFs are NOT run by computers tracking a market index like the ASX 200. Sometimes, the ETF will be used as a pool of investors' money and invested by a professional investment team.

For example, Magellan Financial Group Ltd (ASX: MFG) launched their successful Global Fund in an ETF wrapper back in March 2015. The Magellan Global Equities ETF (MAGELLGEF) is managed by a professional investment team based in Sydney. The team buy a portfolio of shares on international markets which they think will outperform the market. The fund also benefits from a stronger US Dollar ($) (USDUSD).

Another ETF more than worthy of a mention is the Vanguard MSCI Index International Shares (Hedged) ETF.

Vanguard, is the fund manager.

MSCI Index International Shares, is the market index that the fund tracks. It includes around 1,584 individual companies from around the world.

Hedged, means the fund neutralises the currency effect, so you benefit — or lose — from the movements in the shares, not the currency.

Vanguard is a fantastic ETF provider because its products are very cheap. This ETF costs investors just 0.21% per year, which is deducted directly from the portfolio.

Finally, ISHEUROPE is Google-speak for the iShares Europe ETF. Basically, it tracks the top European companies (around 368 today) in US dollars. Therefore, investors can benefit from favourable US dollar movements, increases in the companies' share prices and distributions (aka dividends). The ETF has an estimated distribution of 2.7%.

Why don't you include Australian ETFs?

Most passive (market tracking) ETFs in Australia are poorly conceived ideas, in my opinion. And given how concentrated the local sharemarket is, you may as well just go and buy Commonwealth Bank of Australia (ASX: CBA) and BHP Billiton Limited (ASX: BHP) shares yourself. For the record, neither company's shares are a buy in my book. 

Don't get me wrong, there are many ETFs I would buy. But I'd buy these three international ETFs first. For example, I bought my young sister the Vanguard ETF a couple of months ago.

Other good ideas

For the record, ETFs are not the only way to skin a cat (so to speak). I buy shares directly on the ASX through my broker and internationally, through my optionsXpress account.

But the ASX also has an mFund service.

By design, mFunds are nearly the same thing as active ETFs like Magellan. You can buy into these funds just like an ETF — through your online broker. One of my favourite mFund's is the concentrated Global Fund run by Peters MacGregor (PMW01), also based in Sydney.

The post Probably, my 3 favourite ASX-listed exchange traded funds (ETF) appeared first on The Motley Fool Australia.