Thanks partly to our unique system of franking, as well as some good old fashioned love of country, it's fair to say that ASX investors have a strong local bias.

When we do branch out to invest beyond our shores, it is usually a direct flight to the US markets. As I've written here before, the US is, as it should be, the first port of call for ASX investors seeking international diversification. No one can deny that the US is home to the vast majority of the world's best and most dominant businesses. No other country's share market constituents can match the size, scope and scale of top US stocks like Amazon, Alphabet, Microsoft, Netflix, Mastercard, Procter & Gamble, Apple, and countless others.

However, that doesn't meaning investing in US stocks isn't without risk. The US-Iran war that has been raging all month proves that. As such, I think the prudent investor might wish to consider diversifying beyond just Australia and America. The easiest way to do this, by far, is by using exchange-traded funds (ETFs).

Let's go through some of the best options for stocks outside Australia and the US.

3 ASX ETFs that can help diversify a portfolio

First up, there's the Vanguard All-World ex-US Shares Index ETF (ASX: VEU). This ETF, as its name implies, throws a whole bunch of different countries' stock markets together, with the notable exception of the US. The largest contributors to VEU's portfolio include Japan, the United Kingdom, China, Canada, India, and Taiwan. A healthy mix of advanced and developing economies there. ASX do feature in this ETF as well, although they make up just 4.3% of the entire portfolio.

Another option to consider is the Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE). VGE focuses exclusively on emerging economies, so you won't find European, British or Japanese stocks here. Instead, VGE's largest contributors are countries like China, Taiwan, Brazil, South Africa and Saudi Arabia.

Finally, investors can consider the iShares MSCI EAFE ETF (ASX: IVE). This fund covers markets from Europe, Asia and the Far East (EAFE). It offers exposure to countries ranging form Japan, Spain and the UK to Germany, Singapore and Israel. Again, Australia is included as well, but contributes just over 6% to IVE's holdings.

Foolish takeaway

All three of these ASX ETFs offer Australian investors an easy way to add exposure to stocks from Europe, Asia and Africa to their portfolios. These regions are under-represented in the vast majority of ASX portfolios, and can help insulate investors from adverse movements on the American or Australian markets.

The post These 3 ASX ETFs can help protect your portfolio in 2026 appeared first on The Motley Fool Australia.

Instead of trying to pick individual winners, a single ETF can provide exposure to dozens or even hundreds of companies across different industries and countries. For long-term investors, that diversification can be a powerful way to participate in global economic growth.

If I had $10,000 ready to invest right now, I would be looking closely at a handful of Vanguard ETFs that offer broad exposure to different parts of the world.

Here are three that stand out to me.

Vanguard S&P 500 US Shares Index ETF (ASX: V500)

One of the newest additions to the ASX ETF landscape is the Vanguard S&P 500 US Shares Index ETF, which launched this month.

This fund aims to track the performance of the S&P 500 Index, giving investors exposure to 500 of the largest publicly listed companies in the United States. That includes many of the world's most influential businesses across technology, healthcare, financials, and consumer sectors.

The S&P 500 has historically been one of the most powerful wealth-building engines in global markets, driven by the strength and innovation of the U.S. economy.

What also stands out to me about this ETF is its low management fee of just 0.07% per year, which makes it a cost-effective way to gain exposure to large-cap U.S. companies.

For investors seeking long-term growth, having exposure to the U.S. market through a fund like the V500 ETF makes a lot of sense in my view.

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

Another region I think deserves a place in a diversified portfolio is Asia.

The Vanguard FTSE Asia Ex-Japan Shares Index ETF provides exposure to a broad portfolio of companies across major Asian economies including China, Taiwan, South Korea, and India.

These markets are home to many of the world's fastest-growing economies and some of the most important technology and manufacturing businesses globally.

Companies involved in semiconductors, electronics, financial services, and consumer goods are well represented in the index.

Adding exposure to Asian markets can help diversify a portfolio beyond Australia and the United States, while also providing access to long-term growth driven by rising middle classes and expanding economies.

Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)

The third ETF I would consider buying is the Vanguard FTSE Emerging Markets Shares ETF.

This fund provides exposure to hundreds of stocks across emerging markets such as China, India, Brazil, Taiwan, and South Africa.

Emerging markets can be more volatile than developed markets, but they also offer significant long-term growth potential as economies industrialise and consumer spending rises.

Many global investors allocate a portion of their portfolios to emerging markets for this reason.

By investing through a broad ETF like the VGE ETF, investors can gain exposure to these markets without needing to pick individual companies or countries.

Foolish takeaway

Building a globally diversified portfolio doesn't need to be complicated.

By combining ETFs that focus on the United States, Asia, and emerging markets, investors can gain exposure to a wide range of economies and industries around the world.

For long-term investors looking to participate in global growth, I think Vanguard's V500 ETF, VAE ETF, and VGE ETF could be worth considering for a $10,000 investment.

The post I would put $10,000 into these Vanguard ETFs tomorrow if I could appeared first on The Motley Fool Australia.

According to Anna Wu, Senior Associate, Cross-Asset Investment Research, last year marked the strongest annual performance for emerging market equities since 2017.

She believes there are a number of drivers that could support this momentum throughout 2026. 

US dollar weakness

According to last week's report, assuming historical patterns hold, US dollar down cycles tend to persist once they begin. 

In 2026, factors such as high US government debt, easing monetary policy, and slowing US economic growth could contribute to further dollar weakness. 

Additionally, the US dollar's share of global foreign exchange reserves has declined to its lowest level since the mid-1990s, suggesting a broader move away from dollar dominance.

A weaker US dollar typically boosts the strength of emerging markets currencies, making exports cheaper, improving revenues and contributing to outperformance in this environment.

Emerging markets are positioned for growth tailwinds

The report from VanEck also reinforced that emerging economies are growing at almost twice the rate of developed markets. 

This is along with relatively stable inflation, which positions them as the world's primary growth drivers.

On a corporate level, street analysts are pricing in an upbeat earnings outlook for emerging markets companies, circa 20% EPS growth over the short and medium term. This highlights the upside potential for continued earnings growth. 

Valuations of emerging markets corporates also appear more attractive compared to their developed markets peers, at a 25% relative discount and at an absolute level closer to the historical average.

Key markets to watch

VanEck pointed to South Korea and Taiwan as markets that have performed well recently. 

It said investors have been chasing exposure to the AI 'picks and shovels' trade. 

These are the companies that supply the core building blocks of artificial intelligence rather than end-use applications. These markets are among the world's top providers of semiconductors.

It also highlighted India as the next potential growth driver in emerging markets. 

India's strong GDP and earnings growth, coupled with easing policy and strong corporate earnings growth, reinforces its potential to return as a key emerging market outperformer this year. 

Additionally, the country could be a beneficiary of the global AI infrastructure buildout, with US tech giants such as Google and Microsoft continuing to increase capital expenditure (CAPEX) commitments in the country.

This sentiment is also shared by Global X who also identified India as a structural growth market in a report last week.

How do investors gain exposure to emerging markets?

For broad exposure to emerging markets, there are several options including: 

• VanEck Msci Multifactor Emerging Markets Equity ETF (ASX: EMKT)
• iShares MSCI Emerging Markets ETF (ASX: IEM)
• Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)

For geographic specific ASX ETFs for the aforementioned countries: 

• iShares Msci South Korea ETF (ASX: IKO)
• Betashares Capital Ltd – Asia Technology Tigers Etf (ASX: ASIA) – Includes roughly 63% combined weighting to South Korea and Taiwan
• VanEck India Growth Leaders ETF (ASX:GRIN)
• Betashares India Quality ETF (ASX: IIND)

The post The case for emerging markets ASX ETFs strengthens: Expert appeared first on The Motley Fool Australia.

A handful of well-established ASX ETFs now provide direct access to Europe, US tech leaders, Asia, and emerging markets. All in local dollars.

Together, these five funds span the world's key growth engines.

Vanguard FTSE Europe Shares ETF (ASX: VEQ)

Europe often flies under the radar, but this ASX ETF gives investors broad exposure to developed European markets, including the UK, Germany, France, and Switzerland. The ETF holds hundreds of large and mid-cap companies across financials, industrials, and healthcare.

Over the past 12 months, VEQ has delivered returns of around 25%, supported by stronger earnings and a rebound in cyclical sectors. Income also plays a role, with a dividend yield near 3%, making it one of the higher-yielding regional ETFs.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

BetaShares NASDAQ 100 ETF remains the go-to ASX ETF for exposure to global innovation. It tracks the NASDAQ-100 Index (NASDAQ: NDX), dominated by technology and growth leaders such as Apple, Microsoft, Nvidia, and Amazon.

After a strong run, NDQ has produced roughly 11% returns over the past year. Dividends are modest, with about 1%. But that's the trade-off for access to companies driving artificial intelligence, cloud computing, and digital consumption.

iShares MSCI Emerging Markets ETF (ASX: IEM)

For investors chasing higher long-term growth, this ASX ETF opens the door to emerging economies, including China, India, Taiwan, Brazil, and South Korea. The fund spans more than 1,000 companies across tech, banking, and consumer sectors.

Emerging markets staged a sharp recovery, with IEM up around 30% over the past 12 months. Income is secondary here, with a dividend yield of roughly 1.5%, but the growth potential remains the key attraction.

Vanguard FTSE Asia ex Japan ETF (ASX: VAE)

VAE focuses on Asia's fastest-growing economies while excluding Japan. China, India, Taiwan, and South Korea dominate the portfolio, giving investors exposure to manufacturing, semiconductors, and expanding consumer markets.

The ETF has returned about 20% over the past year, reflecting renewed momentum across Asian equities. Dividends sit around 1.7%, offering a modest income stream alongside growth.

Vanguard FTSE Emerging Markets ETF (ASX: VGE)

VGE provides another take on emerging markets, tracking a slightly different index with a tilt toward larger companies. It overlaps with IEM but often delivers a higher income profile.

Over the past 12 months, the ASX ETF has generated mid-teens returns while offering a dividend yield of close to 3%, making it appealing to investors seeking emerging-market exposure without sacrificing income.

The post 5 ASX ETFs for genuine global exposure appeared first on The Motley Fool Australia.

This includes the market's largest ETF, the Vanguard Australian Shares Index ETF (ASX: VAS).

Aussie investors have $22.58 billion invested in ASX VAS, which seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO).

VAS ETF delivered a total gross return of 10.07% last year, made up of 7.05% in capital growth and a dividend yield of 3.02%.

The ETF closed out the year at $108.90 per unit on 31 December after retracing a little from its 52-week high of $113.18 on 16 October.

On Friday, VAS closed the week at $110.50 per unit, up 0.53%.

Let's recap the dividends to be paid out today for investors in VAS and other Vanguard ETFs.

How much will Vanguard ETF investors receive?

Here is a summary of the dividends that Vanguard will pay to investors today.

The Vanguard Australian Shares Index ETF (ASX: VAS) will pay a dividend of 82.08 cents per unit.

Vanguard Australian Shares High Yield ETF (ASX: VHY), which tracks the FTSE Australia High Dividend Yield Index, will pay 65.83 cents per unit.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) will pay a dividend of 47.36 cents per unit.

The Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) will pay 129.60 cents per unit. The VSO tracks the MSCI Australian Shares Small Cap Index.

Vanguard FTSE Europe Shares ETF (ASX: VEQ), which tracks the FTSE Developed Europe All Cap Index (with net dividends reinvested) in Australian dollars before fees, will pay 61.60 cents per unit.

The Vanguard Australian Fixed Interest Index ETF (ASX: VAF) will pay a dividend of 42.44 cents per unit.

Vanguard Australian Property Securities Index ETF (ASX: VAP), which tracks the performance of the S&P/ASX 300 A-REIT Index before fees, will pay 45.61 cents per unit.

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE), which tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars before fees, will pay 132.88 cents per unit.

Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH), which tracks the FTSE Australia 300 Choice Index before fees, will pay 55.39 cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM) will pay 85.44 cents per unit.

Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC) will pay a dividend of 63.34 cents per unit.

The post Vanguard will pay ASX ETF dividends today appeared first on The Motley Fool Australia.

The ETF provider will pay investors next Monday, 19 January.

Let's take a look.

Next round of dividends for Vanguard ASX ETF investors

Here is a summary of the dividends that Vanguard will pay to investors holding some of its most popular products on 19 January.

The Vanguard Australian Shares Index ETF (ASX: VAS), which seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO) before fees, will pay a dividend of 82.08 AU cents per unit.

The Vanguard Australian Shares High Yield ETF (ASX: VHY) tracks the FTSE Australia High Dividend Yield Index. The ASX VHY will pay 65.83 AU cents per unit.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) provides exposure to about 1,500 businesses in developed nations outside Australia. This ETF will pay a dividend of 47.36 AU cents per unit.

The Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) will pay 129.60 AU cents per unit. The VSO tracks the MSCI Australian Shares Small Cap Index.

The Vanguard FTSE Europe Shares ETF (ASX: VEQ) provides exposure to about 1,300 companies listed in major European markets. It tracks the FTSE Developed Europe All Cap Index (with net dividends reinvested) in Australian dollars before fees. It will pay 61.60 AU cents per unit.

The Vanguard Australian Fixed Interest Index ETF (ASX: VAF) tracks the Bloomberg AusBond Composite 0+ Yr Index before fees. It will pay a dividend of 42.44 AU cents per unit.

The Vanguard Australian Property Securities Index ETF (ASX: VAP) tracks the performance of the S&P/ASX 300 A-REIT Index before fees. It will pay 45.61 AU cents per unit.

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE), which tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars before fees, will pay 132.88 AU cents per unit.

The Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) tracks the FTSE Australia 300 Choice Index before fees. It will pay 55.39 AU cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM) will pay a dividend of 85.44 AU cents per unit. The VISM ETF tracks the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars before fees.

Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC), which tracks the MSCI Australian Shares Large Cap Index, will pay a dividend of 63.34 AU cents per unit.

The post Vanguard reveals next lot of dividends for VAS and other ASX ETFs appeared first on The Motley Fool Australia.

With only a day left of trading this year, the S&P/ASX 200 Index (ASX: XJO) has risen roughly 6.4% this year. 

History tells us that's slightly below average. 

So if your portfolio rose more than that this year, well done! 

What you might not realise is that Australia's benchmark index has been outpaced over the last couple of years by Emerging Markets and Developing Economies (EMDE).

What are developing economies?

The World Economic Outlook divides the world into two major groups: advanced economies and emerging and developing economies.

Emerging Market and Developing Economies (EMDEs) are countries that are in the process of economic development and have lower income levels and less mature financial and institutional systems compared to advanced economies.

There are more than 150 countries that are classified in this group. 

It's important to note this classification is not based on strict criteria, economic or otherwise. 

However in general terms, these are economies that:

• Have lower per-capita income than advanced economies
• Are undergoing structural transformation (e.g., industrialisation, urbanisation)
• Have developing financial markets and institutions
• Often experience faster economic growth but higher volatility

How have they performed?

These markets are growing both economically, and in terms of global presence. 

In fact, data shows emerging markets and developing economies (EMDEs) now account for 45% of global GDP.

This is up from 25% in 2000 according to the World Bank Group. 

There are two ASX ETFs that have performed well over the past two years on the back of this growth. 

Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)

This ASX ETF offers exposure to companies listed on emerging markets, allowing investors to participate in the long-term growth potential typical of these economies.

At the time of writing, it is made up of more than 6,000 holdings, with its largest geographical exposure being towards: 

• China (32.6%)
• Taiwan (22.0%)
• India (19.8%)

Importantly, it has performed well over the last 3 years. 

In 2025, the fund rose 14.54%, far outpacing the ASX 200. 

Over the last 3 years, it has provided returns of approximately 13.5% per annum. 

iShares International Equity ETFs – iShares MSCI Emerging Markets ETF (ASX: IEM)

This ASX ETF offers another option to gain exposure to emerging markets. It focuses on 800 large and mid-sized companies. 

It has a similar geographic profile, with large exposure to: 

• China (27.91%)
• Taiwan (20.26%)
• India (15.33%)
• Korea, South (13.01%)

In 2025, this ASX ETF has risen more than 22%. 

Over the last three years it has provided per annum returns of 14.23%. 

Foolish takeaway 

There is absolutely ample opportunity in ASX stocks. However diversifying into international markets can also be a worthwhile strategy for investors. 

It is important to note that emerging markets can also face significant volatility due to factors like political instability, currency fluctuations, weaker regulation, and lower liquidity compared with developed markets.

The post Did these two ASX ETFs targeting developing economies beat your portfolio in 2025? appeared first on The Motley Fool Australia.

I have long recommended that Australian investors diversify into US stocks. The US, with its world-class companies like Microsoft, Alphabet, and Mastercard, is fertile ground for finding some of the best companies in the world.

However, chances are most Australians are already quite heavily invested in the American markets thanks to their superannuation funds. Many Australians might also feel a little queasy about investing Stateside right now for various reasons. One might be the high correlation that the ASX and the US stock markets have historically shown.

So, if you are looking for true stock market diversification, you might wish to consider using an ASX ETF that many investors haven't considered, or may not have even heard of.

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE) is a massive investment in scope and scale. It holds more than 4,000 underlying stocks, drawn from about two dozen countries' stock markets. The economies of these countries, as you might guess from the fund's name, are classified as emerging. They range from China, India, and Taiwan to Kuwait, Malaysia, and South Africa.

Those are markets that most investors have very little exposure to, if at all. Some of this ETF's largest holdings are stocks you may have heard of, such as Taiwan Semiconductor Manufacturing Co. or Alibaba. Others, like Saudi National Bank and Petroleo Brasileiro, are more obscure.

An ASX ETF to instantly diversify a stock portfolio

Using an ETF like VGE enables investors to diversify away from both the ASX and the United States as much as one practically can in Australia. For investors who have already done so in recent years, the results have been quite lucrative. As of 31 October, the Vanguard FTSE Emerging Markets Shares ETF has returned 18.57% year to date and 20.96% over the preceding 12 months. Over the past three years, the returns have averaged 17.43% per annum.

Going back further, though, those returns are more tempered. VGE units have averaged 7.71% per annum over the ten years to 31 October, and 7.6% per annum since this ASX ETF's inception 12 years ago this month. These figures all take into account VGE's management fee of 0.48% per annum.

ASX investors also have to keep in mind that this ETF is not currency hedged. That means that international currency movements (which can be volatile in emerging markets) have the potential to both positively and negatively influence returns when brought back to Australian dollars.

Even so, this ASX ETF from Vanguard is arguably a great option if you want to meaningfully diversify your ASX investments.

The post Is this the best ASX ETF to diversify your portfolio with? appeared first on The Motley Fool Australia.

If you want to top up your holdings before payday, you'd better hurry, as the ex-dividend date is next Wednesday, 1 October.

Investors will receive their dividends on 16 October.

How much will Vanguard ASX ETF investors receive?

Here is a sample of the dividend amounts investors in some of the most popular Vanguard ETFs will receive on 16 October.

The Vanguard Australian Shares Index ETF (ASX: VAS), which seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO) before fees, will pay a dividend of 109.8836 cents per unit.

The Vanguard Diversified High Growth Index ETF (ASX: VDHG), which aims to track the weighted average return of various indices, will pay a distribution of 36.6162 cents per unit.

The Vanguard Australian Shares High Yield ETF (ASX: VHY) tracks the FTSE Australia High Dividend Yield Index. The ASX VHY will pay 110.2292 cents per unit.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) provides exposure to about 1,500 businesses in developed nations outside Australia. This ETF will pay a dividend of 37.0856 AU cents per unit.

The Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG) will pay 27.9914 AU cents per unit. The VESG tracks the FTSE Developed ex Australia Choice Index (with net dividends reinvested) in Australian dollars.

The Vanguard Australian Property Securities Index ETF (ASX: VAP) tracks the performance of the S&P/ASX 300 A-REIT Index. It will pay 28.7623 cents per unit.

The Vanguard FTSE Europe Shares ETF (ASX: VEQ) tracks the FTSE Developed Europe All Cap Index (with net dividends reinvested) in Australian dollars. It will pay 12.9677 cents per unit.

The Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) tracks the FTSE Australia 300 Choice Index. It will pay 59.9213 cents per unit.

The Vanguard Australian Fixed Interest Index ETF (ASX: VAF) tracks the Bloomberg AusBond Composite 0+ Yr Index before fees. It will pay a dividend of 21.5885 cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM) will pay a dividend of 19.6512 AU cents per unit. The VISM ETF tracks the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars.

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE) tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars. It will pay 30.0260 AU cents per unit.

Bear in mind that these are estimated distribution amounts. Vanguard will advise us of the finalised figures in due course.

Interested in reinvesting your dividends?

A distribution reinvestment plan (DRP) is available for all of these Vanguard ETFs.

DRP elections must be made by 5pm on the record date, which is 2 October.

The post Own ASX VAS, VDHG or other Vanguard ETFs? Here's your next dividend appeared first on The Motley Fool Australia.

On Tuesday, we saw scores of internationally-focused ETFs reach either 52-week highs, multi-year highs, or all-time record prices.

Some of the most popular ETFs were among them, such as iShares S&P 500 ETF (ASX: IVV), Betashares Nasdaq 100 ETF (ASX: NDQ), Vanguard MSCI Index International Shares ETF (ASX: VGS), Global X FANG+ ETF (ASX: FANG), and iShares Global 100 AUD ETF (ASX: IOO).

The ETFs soared due to ongoing strength in the US market, with the S&P 500 Index (SP: .INX) smashing another all-time high this week.

Over the years, Aussies have enthusiastically invested billions in ASX ETFs to gain easy, diversified exposure to international shares.

This trend continues today, with a record $5.28 billion invested in July alone.

Next week, scores of ETFs go ex-dividend, which means time is running out for investors who may want to top up their holdings.

To receive an ETF's next dividend, you must buy or already own the ETF before its ex-dividend date.

We provide a sample of ETFs going ex-dividend below.

If you want to buy any of these ETFs to score their next dividend (or 'distribution') payments, you'd better be quick!

24 ASX ETFs with ex-dividend dates next week

At this stage, most providers have only released estimated distribution amounts. They will release finalised figures in due course.

The post 24 ASX ETFs going ex-dividend next week appeared first on The Motley Fool Australia.

They offer high earners broad market exposure and diversification without the hassle of managing a range of individual stocks and their individual fees. Essentially, ETF investors are able to buy a bunch of shares via a single trade and for one brokerage fee.

Not only that, but another upside is that many dividend-paying ASX ETFs pass on franking credits to investors. That means our highest-earning professionals, who face higher marginal tax rates, can use franking credits to reduce their tax liability. 

So, which ASX ETFs are Australia's highest-earning professionals investing in?

The Financial Review, using Stockpot data, has collated a list of the most popular ASX ETFs. Here's what it revealed.

How top earners invest

The analysis takes a snapshot of six of Australia's top-earning professions – mining, gas and oil professionals; finance professionals; chief executives and general managers; doctors and medical professionals; legal, social and welfare professionals; and the average Stockpot user.

The data shows that Australians who work in the mining, gas and oil sector have the highest investment risk appetites by occupation. Stockpot found that 97% of those professionals are invested in one of its 'aggressive' portfolios. These portfolios include growth and high-growth stocks.

This is compared to 85% of finance professionals who invest in the same portfolio, 80% of chief executives and general managers, 72% of doctors and medical professionals, and 65% of legal, social and welfare professionals.

For context, 67% of average Stockpot users also invest in the portfolio.

Source: Financial Review/Stockpot

The most popular ASX ETFs in Stockpot's 'aggressive' portfolio

Stockpot's aggressive-growth portfolio is made up of 78% growth assets, such as shares. It also comprises 22% of defensive assets such as gold, government and corporate bonds.

That portfolio, which is Stockspot's most popular, includes:

• Vanguard's Australian Shares Index ETF (ASX: VAS)
• iShares International Equity ETFs – iShares Global 100 ETF (ASX: IOO)
• MSCI emerging markets and core composite bonds such as Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE) and iShares MSCI Emerging Markets ETF (ASX: IEM)
• Etfs Metal Securities Australia – Etfs Physical Gold (ASX: GOLD)

Stockpot's growth portfolio has similar ETFs, but a higher proportion (30%) in defensive assets.

Most traded ASX ETFs of FY25

Some of these ETFs also made the list of the most-traded ASX ETFs by Stake customers in FY25, highlighting their popularity across all types of investors.

Online trading platform Stake noted that for the financial year ending 30 June, the Vanguard Australian Shares Index ETF was the second most popular among all its customers, with an 81% buy to 19% sell ratio.

The Global X Physical Gold ETF also made the list with an 86% buy and 14% sell ratio.

The post Australia's highest earners are betting big on these ASX ETFs appeared first on The Motley Fool Australia.

Well, today's a great day for you and other Vanguard ETF investors because it's dividend payday!

Vanguard will pay your distributions today. Here's how much you'll receive.

Own VAS or VGS ETFs? Here's how much you'll get today…

VAS is Australia's biggest ETF with $20.75 billion in funds under management (FUM), according to June data from the ASX.

VAS seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO) before fees.

The VAS ETF will pay a dividend of 65.1416 AU cents per unit.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) is the second biggest ETF on the Australian share market.

The VGS ETF tracks the MSCI World ex-Australia (with net dividends reinvested) in Australian dollars Index.

This ETF will pay a dividend of 128.4107 AU cents per unit.

Dividends for other Vanguard ETFs…

Here is a summary of the dividend amounts investors in these Vanguard ETFs will receive on Wednesday.

The Vanguard Australian Shares High Yield ETF (ASX: VHY) tracks the FTSE Australia High Dividend Yield Index. The ASX VHY will pay 201.0911 AU cents per unit.

The Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) will pay 398.3168 AU cents per unit. The VSO tracks the MSCI Australian Shares Small Cap Index.

The Vanguard FTSE Europe Shares ETF (ASX: VEQ) tracks the FTSE Developed Europe All Cap Index (with net dividends reinvested) in Australian dollars before fees. It will pay 104.3118 AU cents per unit.

The Vanguard Australian Fixed Interest Index ETF (ASX: VAF) tracks the Bloomberg AusBond Composite 0+ Yr Index before fees. It will pay a dividend of 53.6889 AU cents per unit.

The Vanguard Australian Property Securities Index ETF (ASX: VAP) tracks the performance of the S&P/ASX 300 A-REIT Index before fees. It will pay 161.2115 AU cents per unit.

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE), which tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars before fees, will pay 20.1612 AU cents per unit.

The Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) tracks the FTSE Australia 300 Choice Index before fees. It will pay 41.7466 AU cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM) will pay a dividend of 154.1283 AU cents per unit. The VISM ETF tracks the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars before fees.

What about the ASX VTS?

Investors in the Vanguard US Total Market Shares Index ETF (ASX: VTS) will receive their dividend on 28 July.

Vanguard will pay VTS ETF investors 91.32 US cents per unit.

Vanguard will convert the dividend into Australian currency on 22 July and advise investors of the final amount to be paid.

The post Why it's a great day for Vanguard ASX ETF investors! 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.

Investors will receive their dividends on 16 July.

According to the timetable, the ex-dividend date is tomorrow, 1 July, and the record date is 2 July.

How much will Vanguard ASX ETF investors get?

Here is a summary of the dividend amounts investors in some of the most popular Vanguard ETFs will receive on 16 July.

The Vanguard Australian Shares Index ETF (ASX: VAS), which seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO) before fees, will pay a dividend of 65.1416 AU cents per unit.

The Vanguard Australian Shares High Yield ETF (ASX: VHY) tracks the FTSE Australia High Dividend Yield Index. The ASX VHY will pay 201.0911 AU cents per unit.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) provides exposure to about 1,500 businesses in developed nations outside Australia. This ETF will pay a dividend of 128.4107 AU cents per unit.

The Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) will pay 398.3168 AU cents per unit. The VSO tracks the MSCI Australian Shares Small Cap Index.

The Vanguard FTSE Europe Shares ETF (ASX: VEQ) provides exposure to about 1,300 companies listed in major European markets. It tracks the FTSE Developed Europe All Cap Index (with net dividends reinvested) in Australian dollars before fees. It will pay 104.3118 AU cents per unit.

The Vanguard Australian Fixed Interest Index ETF (ASX: VAF) tracks the Bloomberg AusBond Composite 0+ Yr Index before fees. It will pay a dividend of 53.6889 AU cents per unit.

The Vanguard Australian Property Securities Index ETF (ASX: VAP) tracks the performance of the S&P/ASX 300 A-REIT Index before fees. It will pay 161.2115 AU cents per unit.

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE), which tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars before fees, will pay 20.1612 AU cents per unit.

The Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) tracks the FTSE Australia 300 Choice Index before fees. It will pay 41.7466 AU cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM) will pay a dividend of 154.1283 AU cents per unit. The VISM ETF tracks the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars before fees.

Want to reinvest your dividends?

A distribution reinvestment plan (DRP) is available for all of these Vanguard ETFs.

DRP elections must be made by 5pm on the record date, which is 2 July.

Recent research by Vanguard shows ETFs are more resilient during market turbulence than individual shares.

The post Own Vanguard ASX ETFs? Here's your next dividend and when it's coming appeared first on The Motley Fool Australia.

Diversification can be a double-edged sword. All investors acknowledge the importance of hedging risks associated with single companies, markets, and currencies. After all, none of us knows what the future might have in store for us. However, ASX investors can also be in danger of 'over-diversifying', which can lead to sub-optimal returns.

Saying that, there are investors out there who prioritise capital protection over maximising their returns. For those investors, let's discuss how you can build the ultimately diversified $100,000 portfolio using only ASX ETFs today.

Building a $100,000 ASX ETF portfolio for ultimate diversification

Getting to the ultimate level of diversification, we will need to spread out our portfolio across multiple asset classes, not just stocks.

However, in recognising the need to balance a portfolio between capital protection and meaningful returns, we will still be allocating 70% of our portfolio to stocks. For investors who are uncomfortable with this level of risk, you can always decrease that. Today, though, we'll use that as a benchmark.

Kicking things off, we'll allocate $20,000 to the Vanguard Australian Shares Index ETF (ASX: VAS). This index fund tracks the largest 300 shares on our market. That's everything from the big four banks and BHP Group Ltd (ASX: BHP) to Harvey Norman Holdings Ltd (ASX: HVN) and Coles Group Ltd (ASX: COL).

ASX shares have historically delivered compelling returns. Plus, you'll get some additional benefits from the franking credits that VAS provides.

Next, we'll supplement VAS with an additional $20,000 allocated to the iShares S&P 500 ETF (ASX: IVV). This index fund tracks the S&P 500 Index (SP: .INX), which, similarly to VAS, tracks the largest 500 shares listed on the US markets. The American stock market houses some of the world's best companies.

I think it would be negligent to ignore stocks of the calibre of Microsoft, Amazon, Alphabet, Netflix, Mastercard, Coca-Cola, and other world-dominating businesses that call the United States home. Exposure to the US dollar, although currently unfashionable, is also still prudent.

ASX ETFs for EAFE and emerging markets

We'll give a further $15,000 each to both the iShares MSCI EAFE ETF (ASX: IVE) and the Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE).

These two ASX ETFs give us even more diversification by adding exposure to stocks listed in Europe, Asia, and emerging markets.

The iShares EAFE ETF tracks markets across Europe, Asia, and the Far East (EAFE). Most of its portfolio comes from Japan, the United Kingdom, France, and Germany. Its top holdings include ASML Holdings, Nestle, Shell, and Toyota.

Meanwhile, the Vanguard Emerging Markets ETF holds stocks from emerging markets, including China, India, Taiwan, Brazil, Saudi Arabia, and South Africa.

Both of these ETFs hold companies that aren't too prominent in most major ASX ETFs. As such, they add a healthy level of geographic and currency diversification to our portfolio.

So that's the 70%. What about the other 30%?

Bonds and precious metals

If you want true diversification for capital protection, you should look beyond stocks as an investment. So, for our last two ASX ETFs, we'll be adding exposure to bonds and gold.

These asset classes have traditionally offered returns uncorrelated with share markets. As such, they can be useful in a portfolio during stock market crashes and other disruptive events in global markets.

For bonds, we'll be allocating $15,000 to the Vanguard Global Aggregate Bond Index ETF (ASX: VBND). This fund holds bonds issued by a variety of governments around the world, as well as by some investment-grade corporations.

It offers exposure to everything from US Treasuries to British Gilts and bonds issued by McDonald's, Coca-Cola, and even the Commonwealth Bank of Australia (ASX: CBA). Investors will probably appreciate the reliable income that a fund like this can provide.

Finally, we'll be putting our final $15,000 into the Perth Mint Gold Structured Product (ASX: PMGOLD). This exchange-traded vehicle allows investors to buy units that have a direct correlation with the price of gold in Australian dollars. Gold has always been used as a safe haven for investors, providing protection against inflation, currency erosion, and global geopolitical and economic uncertainty. Investors are also attracted to its finite supply and inherent value.

Gold pays no yield. Even so, it has been one of the best-performing asset classes in recent years, thanks to ongoing global uncertainty. If you want to achieve the ultimate level of diversification, it makes sense to have at least some exposure to precious metals like gold in one's portfolio.

The post Here's how I would build a $100,000 ETF portfolio for ultimate ASX diversification today appeared first on The Motley Fool Australia.

Just like many other investors, I'm not complaining seeing my portfolio have consecutive days in the green this week. 

However I also am hesitant to buy when the market seems to be ignoring very real global economic uncertainties. 

Right now the gains seem too good to be true. 

One prime example of this is Commonwealth Bank of Australia (ASX: CBA) shares. The price has continued to hit record high after record high despite experts identifying it as overvalued. 

So with the ASX 200 close to the highest it's ever been, let's look at some other investment strategies to consider if the market is overvalued. 

Dividend investing

If you are struggling to find stocks that you expect to increase in value over the short-term, dividend investing might be worth considering. 

Dividend investing is a viable strategy when the market is at an all-time high. It focuses on income and long-term value over short-term price appreciation. 

Essentially, dividends can provide passive income to shareholders, even if the share price remains flat or falls.

Dividend stocks – especially those with a history of consistent payments – tend to be established companies with strong cash flows. 

The Motley Fool's Sebastian Bowen shared late last month 10 of the top ASX dividend shares. 

Included in the 10 are companies like:

• ANZ Group Holdings Ltd (ASX: ANZ) with a yield of 5.71%.
• Woodside Energy Group Ltd (ASX: WDS) with a yield of 8.66% 
• BHP Group Ltd (ASX: BHP) with a yield of 4.96%. 

Target international markets 

While the ASX might be nearing a record high, it could be an opportunity to find value in other markets. 

This can be done through ASX ETFs that offer exposure to emerging markets. 

Markets outside of the Australian and US include: 

• Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE) – offers exposure to more than 5,900 holdings from emerging economies such as China, India, Taiwan, Brazil, Saudi Arabia and South Africa. 
• Betashares Capital Ltd – Asia Technology Tigers Etf (ASX: ASIA) – aims to track the performance of the 50 largest technology and retail companies in Asia (excluding Japan). 

Target individual sectors 

The ASX 200 index is made up of the 200 largest companies by market capitalisation. 

But it's important to remember it is heavily weighted towards financial stocks like the big four banks, and mining/resources giants. 

That still leaves plenty of opportunity in other sectors. 

For example, cybersecurity is a sector largely expected to experience strong growth in demand as companies and governments invest in digital defence. 

Investors may get access to leading companies in this sector through the Betashares Global Cybersecurity ETF (ASX: HACK). 

Or, you may see opportunity in the future clean energy transition, which could be accessed by an ETF like Betashares Global Uranium ETF (ASX: URNM). It includes global uranium miners and producers positioned to benefit from decarbonisation and energy security.

Foolish takeaway 

Whilst the ASX 200 currently might make it seem like there's no value to be had, there are always opportunities. 

On the flip side, there is such a thing as over diversification, and investors should always make informed decisions. 

As the great Kenny Rogers would say, you've got to know when to hold them, know when to fold them.

The post Where to invest when the ASX 200 hits an all time high? appeared first on The Motley Fool Australia.

One can always use a combination of these vehicles to build a portfolio. However, it is increasingly common for investors to build a portfolio using only ASX ETFs.

There is nothing inherently wrong with this strategy, of course. After all, most ASX ETFs represent investments in an underlying portfolio of shares.

But exactly how many ASX ETFs should an investor aim to have in their portfolio? That's what we'll be digging into today.

How many ASX ETFs should one have in a portfolio?

Here at the Motley Fool, we normally advocate that the typical ASX investor should have between 15 and 25 individual stocks in a share portfolio if that's the path they wish to take. This ensures adequate diversification but not so much that it waters down the potential outperformance of your best shares.

When it comes to ASX ETFs, though, it's a different kettle of fish.

You could theoretically have a properly diversified portfolio using just one ASX ETF, as long as it is a broad-market index fund like the Vanguard Australian Shares Index ETF (ASX: VAS). 

An index fund like VAS delivers exposure to hundreds of underlying companies (300 in VAS' case), spanning all corners of the economy and market sectors.

However, even if we ignore the fact that an ASX index fund will still be heavily tilted towards banks and miners, I think it is better for most investors to branch out from at least one. 

The Australian markets are of high quality, but they still represent exposure to one relatively small country in the global economy. As such, I think adding at least one more index ETF to a portfolio is a good idea for most investors. That's enough to give an investor an additional diversification boost, adding exposure to companies outside Australian jurisdiction, not to mention outside the Australian dollar.  

You could always go with the Warren Buffett-endorsed S&P 500 Index (SP: .INX). The S&P 500 is an index that tracks the largest 500 stocks listed on the US markets. These include the likes of world-dominating stocks such as Apple, Amazon, Microsoft, Google-owner Alphabet, and even Buffett's own Berkshire Hathaway. Adding the ASX's iShares S&P 500 ETF (ASX: IVV) to an ASX index fund like VAS would produce a diversified and high-quality portfolio that, in my view, would suit most investors.

Alternatively, investors could use an even broader index fund like the Vanguard MSCI Index International Shares ETF (ASX: VGS). This fund still offers access to US stocks but also offers exposure to companies from other advanced economies like Japan, the United Kingdom, Canada, and France.

Foolish Takeaway

Not all ASX ETFs are equal. However, I think most investors would need only combine one broad-based ASX index fund with an index fund that covers international shares to pursue a passive, ETF-only portfolio.

You can always add more ETFs, though. For example, you can access emerging markets via a fund like the Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE).

Alternatively, you could add a fund like the BetaShares Global Cybersecurity ETF (ASX: HACK) if you want to combine index investing with strategic exposure to one sector. 

There are no absolute answers here. But as long as you've got some level of diversification, you're on the right track.

The post How many ASX ETFs should I have in my portfolio? appeared first on The Motley Fool Australia.

The latest BetaShares data shows there is now $255.3 billion invested in ETFs.

Overall ETF investment increased by 34.8% — or $66 billion — in the 12 months to 28 February.

For ETF owners, it's probably comforting to know that so many other Australians also see ETFs as a great way to invest.

And there's another reason to feel happy about your ETF investments today.

It's payday for Vanguard ETF investors…

Vanguard will pay the following distributions (or dividends) to ETF investors today.

The Vanguard Australian Shares Index ETF (ASX: VAS), which tracks the S&P/ASX 300 Index (ASX: XKO), will pay 72.8373 AU cents per unit.

The Vanguard MSCI Index International Shares ETF (ASX: VGS), which tracks the MSCI World ex-Australia (with net dividends reinvested) in Australian dollars Index, will pay 147.7026 AU cents per unit.

The Vanguard Australian Shares High Yield ETF (ASX: VHY) tracks the FTSE Australia High Dividend Yield Index. It will pay 244.9839 AU cents per unit.

The Vanguard Diversified High Growth Index ETF (ASX: VDHG) provides exposure to 16,000 local and international shares. The VDHG ETF will pay 93.7006 AU cents per unit to investors today.

The Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC), which tracks the MSCI Australian Shares Large Cap Index, will pay 107.1923 AU cents per unit.

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE) tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars. It will pay 15.9942 AU cents per unit.

The Vanguard Australian Property Securities Index ETF (ASX: VAP) tracks the performance of the S&P/ASX 300 A-REIT Index. It will pay 83.3816 AU cents per unit to investors today.

The Vanguard Australian Fixed Interest Index ETF (ASX: VAF) tracks the Bloomberg AusBond Composite 0+ Yr Index. It will pay 25.1104 AU cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM) will pay 62.7420 AU cents per unit today. The VISM ETF tracks the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars.

The Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) tracks the FTSE Australia 300 Choice Index. It will pay 37.3359 AU cents per unit today.

Aussie investors were buying the dip in ETFs during last week's market sell-off. Here are the 7 most popular ETFs bought.

The post Here's why it's a great day to own Vanguard ASX ETFs appeared first on The Motley Fool Australia.

Investors who own any of the 25 Australian Vanguard ETFs, including the largest on the market, the Vanguard Australian Shares Index ETF (ASX: VAS), will receive their dividends on 16 April.

According to the schedule, the ex-dividend date is 1 April, and the record date is 2 April.

How much will ETF investors get?

Here is a summary of the dividend amounts that investors in some of the most popular ASX ETFs will receive on 16 April.

The ASX VAS, which seeks to track the performance of the S&P/ASX 300 Index (ASX: XKO) before fees, will pay 72.8373 AU cents per unit.

The Vanguard Australian Shares High Yield ETF (ASX: VHY), which tracks the FTSE Australia High Dividend Yield Index, will pay 244.9839 AU cents per unit.

The Vanguard Diversified High Growth Index ETF (ASX: VDHG) provides exposure to 16,000 ASX and international shares. The VDHG ETF will pay 93.7006 AU cents per unit.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) provides exposure to 1,500 listed companies from developed nations outside Australia. This ETF will pay 147.7026 AU cents per unit.

The Vanguard MSCI Australian Large Companies Index ETF (ASX: VLC) tracks the MSCI Australian Shares Large Cap Index before fees. It will pay 107.1923 AU cents per unit.

The Vanguard Australian Fixed Interest Index ETF (ASX: VAF) tracks the Bloomberg AusBond Composite 0+ Yr Index before fees. It will pay 25.1104 AU cents per unit.

The Vanguard Australian Property Securities Index ETF (ASX: VAP) tracks the performance of the S&P/ASX 300 A-REIT Index before fees. It will pay 83.3816 AU cents per unit.

The Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE), which tracks the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars before fees, will pay 15.9942 AU cents per unit.

The Vanguard Ethically Conscious Australian Shares ETF (ASX: VETH) tracks the FTSE Australia 300 Choice Index before fees. It will pay 37.3359 AU cents per unit.

The Vanguard MSCI International Small Companies Index ETF (ASX: VISM) will pay 62.7420 AU cents per unit. The VISM ETF tracks the MSCI World ex-Australia Small Cap Index (with net dividends reinvested) in Australian dollars before fees.

A distribution reinvestment plan (DRP) is available for all 25 ETFs.

DRP elections must be made by 5pm on the record date, which is 2 April.

You can check out the half-year reports for each of these ETFs here.

The post Own Vanguard ASX ETFs? Here's how much you'll receive in dividends and when appeared first on The Motley Fool Australia.

This is up from 25% in 2000. According to the World Bank Group, collective growth from the three largest emerging markets — China, India and Brazil — has driven this increase.

The three have played a major role in expanding the global footprint and influence of EMDEs: China, as the largest EMDE and a key driver of global growth in the past quarter century; India, as the fastest-growing large economy in recent years; and Brazil, as the leading exporter of agricultural products.

The report predicts these economies will continue to play an important role globally. However, the rate of growth is predicted to slow slightly.

Trends in productivity, investment, and labor supply, among the fundamental drivers of growth, suggest that EMDEs' potential growth will slow to about 4 percent in the 2020s, on average, compared to more than 5 percent in the 2010s.

For Australian investors looking to gain exposure to these markets through ASX exchange-traded funds (ETFs), here are two options to consider. 

Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)

This ASX ETF seeks to track the return of the FTSE Emerging Markets All Cap China A Inclusion Index (with net dividends reinvested) in Australian dollars before taking into account fees, expenses and tax.

The index essentially tracks the performance of large, mid and small-cap stocks in emerging markets.

At the time of writing, the VGE ETF has more than 5,800 holdings. Its largest exposure is China (29.0% of the ETF's stocks), India (23.6%) and Taiwan (20.6%). It also has exposure to Brazil (4.3%), Saudi Arabia (4.1%) and South Africa (3.4%). 

It has risen 18.43% in the last 12 months and has a management fee of 0.48% p.a. 

The fund has significant exposure to the information technology and financial sectors. 

iShares International Equity ETFs – iShares MSCI Emerging Markets ETF (ASX: IEM)

This ASX ETF offers exposure to more than 800 large and mid-sized companies in emerging markets. These include China (27.66%), Taiwan (19.62%), India (19.34%), South Korea (8.97%), Saudi Arabia (4.13%) Brazil (4.03%).

It also has significant exposure to the information technology and financial sectors. 

The fund has grown 18.47% over the last 12 months and has a management fee of 0.69% p.a. 

These two ASX ETFs track very similar markets. They share eight out of the ten largest holdings, which is one reason their performance has been similar.

One major difference is the number of total holdings in the funds, with VGE holding roughly 5,000 more stocks.

Trump Tariffs

Back in December 2024, then-US president-elect Donald Trump threatened to place tariffs on some of these developing economies. 

According to the BBC, Trump threatened to impose 100% tariffs on a group of nine nations — including China, Brazil and India — if they were to create a rival currency to the US dollar.

No mention was made of this tariff during his inauguration. However, it's worth noting for anyone considering these markets as an investor. 

The S&P/ASX 200 Index (ASX: XJO) had a rollercoaster first day yesterday under Trump's new administration. 

This could be a sign of what's to come in the short term as the market waits to see what pre-inauguration promises are acted upon.

The post Is now a good time to invest in developing economies? appeared first on The Motley Fool Australia.