In Australia, funds like Vanguard Australian Shares Index ETF (ASX: VAS) and iShares Core S&P/ASX 200 ETF (ASX: IOZ) track the biggest companies domestically. 

Additionally, there are similar funds to track US blue-chips.

However, there have been plenty of new funds hitting the market this year as providers try to focus on niche sectors and themes.

At the end of October, Betashares dropped its newest fund. 

The fund is the FTSE Global Infrastructure Shares Currency Hedged ETF (ASX: TOLL). 

ASX ETF overview 

According to Betashares, the fund aims to track the performance of an index (before fees and expenses) that provides exposure to infrastructure companies from developed countries, hedged into Australian dollars.

It is currently made up of 135 holdings. 

The provider said 50% of the portfolio is invested in utilities, 30% in transportation companies and 20% in infrastructure REITs, energy pipelines and telecommunications.

Infrastructure companies provide capital-intensive essential services that tend to be in consistent demand across the economic cycle. As a result, they typically enjoy strong market positions and pricing power, making them a useful portfolio building block. Low historical correlations with global equities mean an allocation to global infrastructure can also contribute to portfolio diversification.

According to the provider, the companies that this fund invests in tend to generate stable, long-term cash flows that are often linked to inflation. 

It aims to generate attractive quarterly income, funded by the dividends paid by the companies in the portfolio.

It has a 12 month trailing dividend yield of 3.2%.

Geographically, its largest exposure is to companies in: 

• United States (59.0%)
• Canada (10.8%)
• Australia (6.2%)
• Spain (5.7%)
• Britain (4.2%)

The fund is currency-hedged to AUD. This means the fund seeks to neutralise fluctuations in foreign currencies vs the Australian dollar. That means investors hold a "global infrastructure" exposure but with reduced foreign-exchange risk.

How has it performed?

This ASX ETF has only been listed for roughly one month so far. 

However, it is up 1.26% in that span. 

The fund may be ideal for investors wanting global infrastructure exposure without currency risk. 

It is worth mentioning there are some funds already listed on the ASX that may be directly competing with this Betashares ETF. 

For example: 

• Vanguard Global Infrastructure Index ETF (ASX: VBLD) – This fund offers exposure to infrastructure sectors, including transportation, energy and telecommunications. The ETF is exposed to the fluctuating values of foreign currencies.
• VanEck Ftse Global Infrastructure (Hedged) ETF (ASX: IFRA) – Also gives investors exposure to a diversified portfolio of infrastructure securities listed on exchanges in developed markets around the world.

The post Meet the newest ASX ETF from Betashares appeared first on The Motley Fool Australia.

For those looking beyond the banks and blue-chip healthcare giants, industrials and infrastructure are emerging as compelling alternatives. These sectors offer exposure to essential services, government-backed projects, and structural tailwinds like population growth, the energy transition, and the digital economy. 

Four industrial stocks showing strong momentum

Duratec (ASX: DUR)
Duratec specialises in asset remediation and protective coatings. Its work helps extend the life of critical infrastructure, from bridges and ports to defence facilities. With governments and corporations alike focusing on maximising the use of existing assets rather than building from scratch, Duratec has seen growing demand. Its recent results highlighted a robust project pipeline and a steady lift in revenue, supporting share price gains in 2025.

Tasmea (ASX: TEA)
Tasmea is an integrated engineering and services group working across mining, utilities, and industrial clients. It generates a large share of revenue from recurring maintenance contracts, which provide visibility and resilience in uncertain times. The company has reported strong order book growth and is building a reputation as a reliable partner for essential industries. Investors have begun to notice, with Tasmea's shares steadily trending higher this year.

GenusPlus (ASX: GNP)
As Australia's energy grid shifts toward renewables, GenusPlus stands to benefit. The company provides design, construction, and maintenance services for electrical infrastructure, including transmission lines and substations. With major investment planned in renewable projects and interconnectors, GenusPlus is positioned squarely in the middle of the energy transition. The company recently posted rising earnings and a solid pipeline of contracted work, helping its shares outperform the broader market.

NRW Holdings (ASX: NWH)
NRW Holdings has become one of the most diversified contractors on the ASX, with exposure to mining, civil, and urban infrastructure projects. The company recently acquired Fredon, a specialist electrical services business, boosting its exposure to energy and resources. Its share price has surged over 75% in the past 6 months, prompting Macquarie to upgrade the stock to outperform with a higher price target. 

Classic ASX infrastructure plays

Vanguard Global Infrastructure ETF (ASX: VBLD)
For those seeking a broad approach, VBLD offers exposure to more than 130 infrastructure companies worldwide. Its largest weighting is to the United States, but it also holds assets across transport, energy, and telecommunications. Infrastructure spending is expected to exceed $80 trillion globally by 2040, and this fund gives investors a simple, diversified way to ride that megatrend.

Transurban (ASX: TCL)
Toll roads may not be glamorous, but they're some of the most dependable infrastructure assets around. Transurban operates major road networks in Sydney, Melbourne, Brisbane, and North America. Its revenues are often inflation-linked, while traffic volumes continue to climb with population growth. The company recently reported steady increases in toll revenue, reinforcing its reputation as a reliable income generator.

APA Group (ASX: APA)
APA owns and operates Australia's largest network of gas pipelines. While traditional energy assets face transition risks, APA has been diversifying into renewables and storage. Its regulated asset base provides steady cash flow, supporting dividends that appeal to income-focused investors. Management has flagged new growth opportunities as the energy system evolves, positioning APA as a defensive yet forward-looking infrastructure play.

NextDC (ASX: NXT)
Data centres have become critical infrastructure in the digital age. NextDC provides secure, high-capacity facilities for cloud providers, enterprises, and government clients. The company is expanding across Australia and Asia, with more than 100MW of capacity in development. Demand for cloud and artificial intelligence workloads is surging, and fund managers like WAM Leaders are bullish on its long-term growth prospects. NextDC has delivered solid earnings and guided to further revenue and operating earnings growth in FY26, making it a standout in digital infrastructure.

Foolish Takeaway

With some ASX blue chips stumbling, investors are increasingly searching for fresh growth and reliable income elsewhere. Industrials and infrastructure stocks combine defensive characteristics with exposure to megatrends such as energy transition, transport demand, and the rise of digital connectivity.

The post Where money is moving after ASX stalwarts stumble appeared first on The Motley Fool Australia.

Another popular ETF provider is Vanguard. 

While Betashares offers more thematic options, Vanguard offers 29 ASX listed ETFs, with many offering international exposure. 

Let's look at which ones brought the best returns for investors in the last year. 

Vanguard Global Infrastructure Index ETF (ASX: VBLD)

This fund gives exposure to infrastructure securities listed in developed countries. 

It offers investors diversified exposure to infrastructure sectors, including transportation, energy and telecommunications.

At the time of writing it includes 135 holdings, with its largest geographical allocation being the United States (68.7% weighting). 

Over the last 12 months, it has brought investors strong gains, rising 16.29%. 

This fund might suit investors looking for diversification outside the large US tech companies which dominate indexes like the S&P 500 Index (SP: .INX). 

It may also appeal to investors optimistic about growth in global trends like urbanisation, climate adaptation, and infrastructure stimulus.

Vanguard US Total Market Shares Index ETF (ASX: VTS)

The ETF provides exposure to some of the world's largest companies listed in the United States.

Its largest holdings are US blue-chip giants like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). 

However, the fund includes more than 3,000 holdings, meaning investors gain exposure to mid-cap and small-cap listed companies in the United States as well. 

It also has an extremely low management cost of 0.03% per annum.

This fund has a great track record, and the last 12 months was no different, with the ETF rising 15.48% over the period. 

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

Moving away from US dominated funds, this ASX ETF gives investors exposure to securities listed in Asia excluding Japan, Australia and New Zealand.

Its largest weighted holdings are Taiwan Semiconductor Manufacturing Co Ltd, Tencent Holdings Ltd, and Alibaba Group Holding Ltd. 

At the time of writing the fund is made up of more than 1,700 holdings. 

This fund could be ideal for investors looking for exposure in Asian markets. 

It rose 15.31% over the last year. 

The post These Vanguard ASX ETFs rose more than 15% in the last year appeared first on The Motley Fool Australia.

The infrastructure sector is responsible for the backbone of the US economy. Plenty of businesses are involved in owning and operating infrastructure, which can be good investments.

The US is the world's biggest economy and more than 330 million people live there. However, according to the ETF provider Global X, the US is in "dire" need of infrastructure upgrades, with at least US$3.8 trillion ($5.76 trillion) worth of additional investment to "adequately repair existing infrastructure and keep pace with economic expansion."

Global X also said a growing driver of demand for infrastructure investment is the increased frequency of natural disasters. In 2023, the US reportedly experienced a record-breaking 28 weather and climate disasters, each costing more than US$1 billion.

Which ASX ETFs can be used to take advantage?

Some businesses are involved with infrastructure projects' construction, engineering, material procurement, transportation, and equipment distribution processes.

These companies can significantly benefit from the increased expenditure on US infrastructure from governments and privately-funded infrastructure projects.

The Global X US Infrastructure Development ETF (ASX: PAVE) invests in US-domiciled companies to capture the value of growing spending in the world's largest economy.

Some businesses inside the PAVE ETF include Eaton Corp, Trane Technologies, Quanta Services, Martin Marietta Materials, Emerson Electric and Parker Hannifin. It has a total of approximately 100 holdings.

In terms of risks, Global X noted that these companies "typically face intense competition and can be adversely impacted by shifts in government regulations and actions."

Do other funds provide infrastructure exposure?

Other ASX ETFs and investments can also provide exposure to global infrastructure. The US economy's size leads to those funds usually having a large weighting to US shares.

Examples include Vanguard Global Infrastructure Index ETF (ASX: VBLD) (with a 68.8% US weighting), VanEck FTSE Global Infrastructure (Hedged) ETF (ASX: IFRA) (with a 57.2% US weighting) and Magellan Infrastructure Fund (currency hedged) (ASX: MICH) (with a 38% US weighting).

While these ASX ETFs have a smaller allocation to US infrastructure, they're also not targeted at the new spending on infrastructure in the country. Instead, many of the businesses in the portfolios I mentioned have existing assets that are typically generating strong cash flows for shareholders and are hard to replicate.

The post How to get exposure to a potential $5.7 trillion US sector with ASX ETFs appeared first on The Motley Fool Australia.

Well, today we're asking ASX broker Morgan Stanley (MS).

Morgan Stanley's Kevin Dermers recently released a report on how to invest in a high-inflation world. And it makes for some interesting reading.

Morgan Stanley: How to beat inflation

Many investors might assume that just investing in ASX shares is enough to counter the effects of inflation. But rising prices affect different companies in different ways. And some are more immune to its corrosiveness than others. In its report, MS tells us this:

Persistent inflation and a resilient economy could spur the Federal Reserve to keep interest rates elevated, which could weigh on some stocks…

Stocks and funds that offer investors exposure to "real assets"—that is, tangible assets like infrastructure, real estate and natural resources, whose value is linked to their physical attributes—may be appealing in an environment of solid economic growth, persistent inflation and higher interest rates.

It's these 'real assets' like infrastructure, property and commodities that MS argues are the key to beating inflation through investing. This is due to three reasons.

Firstly, real assets allow investors to hedge against inflation as they are able to consistently pass on rising costs to their users.

Secondly, real assets can deliver an all-weather income stream that can deliver cash flow regardless of the economic conditions.

Third, real assets can offer investors some portfolio diversification benefits, as their valuations are usually uncorrelated to other assets including ASX shares.

How to invest in real assets on the ASX

So how exactly does one invest in real assets? Well, MS does note this:

It is possible for investors to hold real assets in their portfolios – for instance, by purchasing gold or buying a share of a building – but it can be more difficult and potentially more risky than purchasing stocks or funds that offer exposure to real assets

So with that in mind, let's discuss a few ASX options here. The most obvious is using exchange-traded funds (ETFs). As investors would probably be aware, there are a plethora of different ASX ETFs that cover different corners of the market. As luck would have it, there are many options to choose from if you are looking for infrastructure, property or commodity investments.

With infrastructure, there are a few ASX ETFs that offer sole coverage of these investments. Two examples would be the Vanguard Global Infrastructure Index ETF (ASX: VBLD) and the VanEck FTSE Global Infrastructure ETF (ASX: IFRA). Both of these funds hold companies that operate assets like pipelines, toll roads, railroads and electrical poles and wires.

Turning to property, there is also a bevy of options to choose from. The Vanguard Australian Property Securities Index ETF (ASX: VAP), which holds stakes in various real estate investment trusts (REITs) is one possibility. Others include buying REIT units yourself, or else another ETF like the iShares Core FTSE Global Property ex-Australia ETF (ASX: GLPR).

The challenges of beating inflation using natural resources

Commodities and natural resources are a tricky one to discuss though. As we all know, there are countless commodities out there that are vital to a healthy economy. But not all of these function in the same way. Iron ore and oil are notoriously cyclical, while precious metals like gold and silver have markets that move on entirely different factors. But MS argues that natural resources are still a great place to look if you want to invest to beat inflation.

So what's the solution? Well, you could start with an ASX-wide resources ETF like the BetaShares Australian Resources Sector ETF (ASX: QRE). This fund invests in all of the ASX's major mining and energy companies, such as BHP Group Ltd (ASX: BHP), South32 Ltd (ASX: S32) and Woodside Energy Group Ltd (ASX: WDS).

You could also combine several different commodity-based ETFs. For example, the BetaShares Crude Oil Index ETF (ASX: OOO) tracks oil futures, the Global X Copper Miners ETF (ASX: WIRE) tracks copper companies, the VanEck Gold Miners ETF (ASX: GDX) tracks, well gold miners, and the Global X Green Metal Miners ETF (ASX: GMTL) allows for exposure to future-facing commodities like lithium, rare earths, nickel and cobalt.

There's also agriculture to consider. Food investments have their own cyclicalities to worry about, with factors like weather and rainfall playing a major role.

But there are ETFs that can allow ASX investors exposure to food-producing investments too. One such example is the BetaShares Global Agricultural Companies ETF (ASX: FOOD).

This fund holds a portfolio of global shares that grow, make, process, package and distribute food products all over the world. It also includes companies like Deere & Company that manufacture farming equipment.

The post Here's how Morgan Stanley invests to beat inflation appeared first on The Motley Fool Australia.

But Vanguard has dozens of different ETFs covering all sorts of sectors of global financial markets. So today, let's discuss three of Vanguard's lesser-known funds, and why I think they could be worth a look this September.

3 overlooked Vanguard ASX ETFs I think are worth a buy right now

Vanguard MSCI International Small Companies Index ETF (ASX: VISM)

There are many ASX ETFs on our share market that allow ASX investors to indirectly buy international shares. But there are hardly any that focus on small international companies. Well, this fund is an exception.

It gives ASX investors access to a massive portfolio of more than 4,000 smaller international shares. These hail from all over the world, with countries as diverse as Japan, Sweden, France, Singapore, and Israel all contributing holdings to VISM's portfolio.

In saying that, more than 60% of this ETF's underlying holdings come from the United States.

You probably won't have heard of too many of this ETF's top holdings, but they include Mattel, DraftKings, and Manhattan Associates.

This ETF has returned an average of 13.29% per annum over the past three years. I think it's certainly worth a look if you want to add some geographic diversity to your ASX portfolio this September.

Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)

Another Vanguard ETF I think is worth a look at this month is the Vanguard Emerging Markets ETF. Like VISM, this fund is a useful one to incorporate into an ASX share portfolio if you're looking to boost your geographic diversification.

But you won't find many American or European companies here. This ETF focuses on emerging markets around the world. These include the likes of countries such as China, India, Taiwan, Brazil, South Africa, Egypt, and Pakistan.

It's obviously pretty difficult to invest in these kinds of markets from Australia, so this ETF handily fills that gap. Some of its top holdings include Taiwan Semiconductor Manufacturing Co, Alibaba, Vale SA, and Petroleo Brasileiro SA.

This ETF has returned an average of 5.85% per annum since its inception in 2013. It charges a management fee of 0.48% per annum.

Vanguard Global Infrastructure Index ETF (ASX: VBLD)

Infrastructure is another area that ASX investors might find difficult to invest in when going beyond our shores. The ASX sports a few infrastructure investments, such as Transurban Group (ASX: TCL). But they are becoming few and far between, especially since the old Sydney Airport went private last year.

Again, this ETF can help plug this hole. Its holdings are also dominated by North American companies, with the United States and Canada accounting for more than 80% of its holdings. But other countries like Japan, Spain, Hong Kong, and South Korea are also represented.

The Vanguard Global Infrastructure ETF comprises electricity generators, railroads, pipeline companies, water and gas distributors, and telecommunications providers. Many investors love these kinds of companies for their predictable cash flows and perceived safety from recessions and inflation.

As of 31 July, this ETF has returned an average of 7.73% per annum over the past three years. It asks a management fee of 0.48% per annum.

The post 3 Vanguard ASX ETFs I think are worth buying in September appeared first on The Motley Fool Australia.

So let's look at the best-performing Vanguard ETFs over the past 12 months.

Of all Vanguard's ETFs, only four managed a positive return in the 12 months to 31 December 2022. Let's see which ones they were.  

Four Vanguard ETFs that delivered a positive return last year

Vanguard Infrastructure Index ETF (ASX: VBLD)

This infrastructure-based ETF managed to eke out a gain of 0.2% in 2022, including fees and dividend distributions. The Vanguard Infrastructure ETF holds companies such as power generators, railway companies, pipeline operators and telcos.

It's heavily weighted towards the US markets, with almost 70% of its holdings hailing from America. These include NextEra Energy Inc, Union Pacific Corp and Canadian National Railway Co.

This ETF has returned an average of 8.16% per annum since its inception in 2018. It charges a management fee of 0.47% per annum:

Vanguard Global Value Equity Active ETF (ASX: VVLU)

This ETF is a bit of a different beast, being an active ETF rather than an index fund. It uses modelling to build a portfolio of undervalued shares from around the world.

Again, the US is the most dominant market in this fund, but shares are drawn from countries as diverse as Japan, Canada, Israel and Hong Kong. Some of its current holdings include AT&T Inc, Meta Platforms Inc and Exxon Mobil Corp.

The Vanguard Global Value ETF returned 1.34% over 2022, after charging the annual management fee of 0.28%. Since its inception in 2018, this ETF has delivered an average annual return of 7.1% per annum.

Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC)

Back to an index fund now, and this ASX-based ETF tracks the largest 20 companies on the Australian share market.

Naturally, banks and miners like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are dominant here, with financials and materials shares accounting for more than 63% of the total portfolio.

Even so, this ETF was able to give investors a decent return of 4.53% last year, thanks in most part to some hefty dividend distributions. This ETF charges 0.2% per annum and has returned an average of 8.01% per annum since its inception in 2011.

Vanguard Australian Shares High Yield ETF (ASX: VHY) 

Last but certainly not least in terms of performance in 2022, we have the Vanguard High Yield ETF.

This fund invests in a basket of dividend-paying shares from the ASX, with the ETF currently invested in 74 income shares. These come from most corners of the ASX, but banks and miners are still quite dominant.

The Vanguard High Yield ETF hit it out of the park last year, delivering investors a dividend-driven return of 8.6% in 2022. This makes it Vanguard's most successful ASX ETF of last year.

This fund charges a fee of 0.25% per annum and has given investors an average return of 8.76% per annum since its inception in 2011. 

The post Which of the Vanguard ASX ETFs has performed best over the past year? appeared first on The Motley Fool Australia.

ETFs enable investors to buy into a portfolio of shares or assets with just one trade.

It would certainly be possible for investors to buy into a broad ETF which just follows an index like BetaShares Australia 200 ETF (ASX: A200) and Vanguard Australian Shares Index ETF (ASX: VAS).

But, I think there are some specialised ETFs that can provide more focused investments for retiree investors. A mixture of dividends and growth could be attractive.

VanEck Morningstar Australian Moat Income ETF (ASX: DVDY)

This fund is about creating a diversified portfolio of dividend-paying quality ASX-listed companies, chosen by Morningstar. It intends to capture the performance of the 25 highest dividend-paying ASX-listed shares, excluding real estate investment trusts (REITs), that meet Morningstar's required criteria. This combines a share's 'economic moat' and 'distance to default' qualities.

An economic moat refers to a company's ability to maintain its competitive advantages and defend its long-term profitability, such as intangible assets (like brand recognition and patents) or cost advantages.

The distance to default measure is used to predict the likelihood of bankruptcy which, the fund says, has "also proven an effective predictor of dividend cuts".

I think a portfolio of quality ASX dividend-paying shares can be a solid ETF choice for a retirement portfolio.

Some of the names in the portfolio include Ansell Limited (ASX: ANN), IPH Ltd (ASX: IPH), AUB Group Ltd (ASX: AUB), National Australia Bank Ltd (ASX: NAB), Iress Ltd (ASX: IRE), and Wesfarmers Ltd (ASX: WES).

Over the year to 31 July 2022, the income part of the return was 5.65%.

Vanguard Global Infrastructure Index ETF (ASX: VBLD)

Another area that could fit well into a retirement portfolio is infrastructure.

Infrastructure can be a good investment because of its typically consistent, and perhaps growing, earnings and distributions.

One of the advantages of this portfolio from Vanguard is that it's globally based. While just over two-thirds of the ETF is invested in the US, there are multiple other countries that have a weighting of more than 0.5% — Canada (14.6%), Japan (3.6%), UK (3.2%), Spain (2.2%), Australia (2.1%), Hong Kong (1.9%), Italy (1.6%), and France (0.7%).

In terms of sector allocation, at 31 July 2022, 'conventional electricity' made up 34% of the ETF, 'railroads' were 19.6% of the portfolio, 'pipelines' were 14% of the portfolio, 'multi-utilities' were 10.7% of the portfolio, and infrastructure REITs were 9.7% of the portfolio. Other smaller sectors include transportation services, water, telecommunication services, and telecommunications equipment.

According to Vanguard, the equity yield is 2.9%. That's not a bad starting yield.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The first ETF I wrote about was focused on dividends from Australian businesses.

However, the VanEck Morningstar Wide Moat ETF is invested in a portfolio of US shares that are viewed as strong, long-term businesses with wide economic moats.

The Morningstar investment team only choose shares that are seen as good value compared to how much they think the business is actually worth.

For a company to earn the status of having a wide economic moat, according to Morningstar, excess normalised profit must, with near certainty, be positive a decade from now. On top of that, excess normalised profit must, more likely than not, be positive 20 years from now. In other words, chosen investments could be solid picks for at least 20 years. But, the portfolio may move on from those holdings, depending on factors like valuation changes.

While this ETF isn't likely to pay much of a dividend, the total returns have been good in my opinion. The VanEck Morningstar Wide Moat ETF has made an average return per annum of 15.1% since June 2015. But, of course, past performance is no guarantee of future performance.

The post How I'd invest for retirement using just 3 ASX ETFs appeared first on The Motley Fool Australia.

Many ASX investors would be familiar with some of Vanguard's popular exchange-traded funds (ETFs). Indeed, the Vanguard Australian Shares Index ETF (ASX: VAS) remains the most popular ASX ETF on our share market today.

But until now, Vanguard has not been directly involved in the Australian superannuation industry. Until a few years ago, the company did offer its products indirectly through other super providers. But the company has ditched these avenues in preparation for its entry into the market itself.   

Vanguard primed to announce new superannuation products

This may have just gotten one step closer too. According to reporting in The Australian today, Vanguard has just received regulatory approval to "launch a suite of superannuation products" in the Australian market from the Australian Prudential Regulation Authority (APRA).

Vanguard's Australian chief executive, Daniel Shrimski, told The Australian that "our journey is just beginning… We think the simplicity, the low cost and the (investment) expertise that we will provide will resonate".

As a well-known provider of ETFs, many investors might assume that these ETFs may play a major role in what Vanguard will offer super customers.  

That would be a safe assumption, according to Shrimski. He said that Vanguard's products will be "more fund-based but we think ETFs will certainly be a part of the longer-term solution".

So what ETFs might Aussies be able to invest in under a Vanguard superannuation product? Well, the Vanguard Australian shares ETF would be a good start.

As Vanguard's most popular product, and the only one that covers either the S&P/ASX 200 Index (ASX: XJO) or the S&P/ASX 300 Index (ASX: XKO), it would be a safe bet that VAS is among the flagship ETFs that Vanguard will offer up.

Which Vanguard ETFs could be on offer?

But the Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) would be another strong candidate. VSO covers around 210 of the smaller shares on the ASX.

Forget BHP Group Ltd (ASX: BHP) and the big four banks. VSO's largest holdings include companies like Lynas Rare Earths Ltd (ASX: LYC), Carsales.com Ltd (ASX: CAR) and Bendigo and Adelaide Bank Ltd (ASX: BEN).  

That could complement Vanguard's other ASX offer, the Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC) nicely. VLC is an ETF that covers only the top 20 largest companies on the ASX.

Income investors might appreciate the inclusion of the Vanguard Australian Shares High Yield ETF (ASX: VHY).

But Vanguard has many other ETFs that look to shares beyond our shores.

The Vanguard MSCI International Shares Index ETF (ASX: VGS) is another probable shoo-in. This is Vanguard's flagship international shares ETF. VGS covers almost 1,500 individual shares hailing from more than 20 different advanced economies.   

These include Canada, France, Japan, the United Kingdom and Germany. Saying that, it is heavily dominated by US tech giants like Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT) and Amazon.com Inc (NASDAQ: AMZN).

Looking outside the ASX and the US

But we could also see the Vanguard FTSE All-World ex-US ETF (ASX: VEU) offered as well. This fund is similar to VGS, but excludes US shares. In their place, many emerging economies are represented, including India, Brazil, and Saudi Arabia. Overall, this ETF has more than 3,500 individuals holding within it.  

Ethically-minded investors might appreciate if there was the option to select the Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG).

More regionally specific ETFs from Vanguard are also possibilities for inclusion in its superannuation offerings. This includes the Vanguard FTSE Europe Shares ETF (ASX: VEQ), the Vanguard FTSE Asia ex-Japan Index ETF (ASX: VAE) and the Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE).

Other Vanguard ETFs covering different asset classes outside shares could also be potentially available. These might be the Vanguard Global Infrastructure Index ETF (ASX: VBLD). As well as the Vanguard Australian Fixed Interest Index ETF (ASX: VAF) for access to fixed-interest bond investments.  

So it's likely that new Vanguard super customers will have a plethora of ETFs to choose from when the company eventually brings its new superannuation products online. We don't yet know when this will be. But with Vanguard now gaining regulatory approval, it's probably going to be sooner rather than later.  

The post Could these ASX ETFs soon play a bigger role in Aussie super funds? appeared first on The Motley Fool Australia.

And unlike technology shares, most infrastructure shares are still well below their February 2020 highs. For investors with a longer-term horizon (2 or more years), this spells opportunity.

Why infrastructure share prices could be heading much higher

Social distancing, lockdowns and border closures put into place to control the pandemic have seen developed nations around the world fall deeply into recession. That includes the United States — the world's biggest economy — and most nations across Europe.

Australia is on that list as well, with gross domestic product (GDP) plummeting 7% relative to the previous 3 months in the quarter ending 30 June, the biggest fall on record. Since GDP also contracted 0.3% the previous quarter, that makes it an official recession. The first since mid-1990 to early 1991 for Australia.

To lift their economies out of recession (and keep their jobs), politicians across developed nations are proposing massive government spending on infrastructure projects, possibly reaching into the trillions of dollars globally.

The stimulus plans would sound quite familiar to former US President, Franklin D Roosevelt. He was the one who pioneered the 'New Deal' in the 1930s. This opened up the government's purse strings to fund road, bridge, and construction projects that put millions of people back to work and put an end to the Great Depression.

1 ASX infrastructure share with built in diversification

There are many different global infrastructure shares that stand to gain as government building booms gets underway.

One way to invest across many of these with a single ASX share is through the Vanguard Global Infrastructure Index ETF (ASX: VBLD). This exchange-traded fund (ETF) holds 139 infrastructure shares across the globe.

Its major holdings focus on railways as well as energy and communications infrastructure companies. Furthermore, 66% of its market allocation exposure is in the US with 14% in Canada and 6% in Japan.

The ETF had a great start to 2020, with the share price gaining 12% through to 21 February, while the All Ordinaries Index (ASX: XAO) gained 6% over the same period.

Then the virus hit. And the share price tanked 25% through to its low on 25 March. It has edged higher from that low, but it's still down 22% from the February highs.

With governments prepared to fund a building boom that could run several years or more, there's no reason the Vanguard Global Infrastructure ETF couldn't see a return to its February highs. That would represent a 28% upside from today's price of $52.65 per share.

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Cast your mind back to 2019 and interest rates were being dropped to (what was then) record lows. The ASX was exploding, partly as a result. Investors were beginning to gobble up dividend-paying ASX shares in an attempt to replace the government bonds and term deposits that were quickly becoming impotent as true, inflation-beating investments.

And among the favourite dividend shares being gobbled up were infrastructure companies. These companies were some of the 'safest' dividend shares on the market, or so many investors believed. As such, these were the shares in the hottest demand from dividend investors. These investors believed the kinds of cash flows these companies offered were far more robust than other ASX dividend shares like Commonwealth Bank of Australia (ASX: CBA). From end to end in 2019, Transurban Group (ASX: TCL) shares rose roughly 30%, as did Sydney Airport Holdings Pty Ltd's (ASX: SYD).

What kind of world would we live in where people weren't using Transurban's tolled-roads, or flying in and out of Sydney Airport, investors might have asked. I wrote an article back then describing how many investors saw these companies as 'bond proxies', or companies with dividends so safe they could be treated as a fixed-income investment.

Well, 2020 has given that answer and broken this thesis in the most brutal of fashions.

Dividend heroes to zeroes

The coronavirus pandemic has comprehensively destroyed the notion that any company's dividend can be regarded as 'safe' or bond-like. Transurban has been forced to slash its dividend payouts in 2020. Sydney Airport has cancelled its interim dividend entirely.

But that in turn begs the question: what role can infrastructure shares play at all in a 2020 dividend portfolio? After all, it's not just Transurban and Sydney Airport that have cut their dividend in 2020. A range of other former ASX dividend heavyweights have also slashed shareholders' payouts (as I alluded to earlier). That includes all four of the major ASX banks, Ramsay Health Care Limited (ASX: RHC), Woolworths Group Ltd (ASX: WOW), BHP Group Ltd (ASX: BHP) and Woodside Petroleum Limited (ASX: WPL).

So it's not like infrastructure shares are alone in this conundrum. Still, investors have always been attracted to infrastructure companies because of the dividend safety discussed earlier, as well as the perception of these companies owning 'real assets' that offer additional perks like inflation-hedging.

Holding infrastructure investment shares in 2020

So what place do infrastructure investments have in a 2020 portfolio? Well, I think there's still merit in this area for a post-COVID world. Although many infrastructure companies have been buckling under the pandemic, others have been doing just fine. Gas pipeline owner APA Group (ASX: APA) is one such example. It has managed to deliver to its investors a dividend increase this year. That's not a feat many other companies can boast of.

If you'd like a well-rounded portfolio of infrastructure shares instead of trying to pick one or two winners, there's a couple of solutions. The Vanguard Global Infrastructure Index ETF (ASX: VBLD) is one such option. It's an exchange-traded fund (ETF) that holds 139 infrastructure shares from around the world. It offers a trailing dividend yield of 3.37% on current pricing and holds energy retailers, railroad companies, airports, and ports, among others.

The Magellan Infrastructure Fund (ASX: MICH) is another option. It's an actively managed fund that holds between 20 to 40 shares and offers a trailing yield of 4.19%.

If it's infrastructure investment you want, either of these funds would make a nice, balanced option, in my view.

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