A well-liked option for Australian investors looking for diversified exposure to international stocks is the Vanguard MSCI Index International Shares ETF (ASX: VGS). With access to a wide variety of businesses from developed economies outside of Australia, this exchange-traded fund (ETF) seeks to mimic the performance of the MSCI World ex-Australia Index.
How Many Companies Are in VGS?
As of October 31, 2024, VGS held approximately 1,427 individual securities. This number can fluctuate over time due to changes in the underlying index and market dynamics. Selfwealth+1Vanguard Fund Docs+1
Geographic and Sector Diversification
VGS offers exposure to companies across various developed countries, with the following regional allocations as of October 31, 2024:
- North America: 77.2%
- Europe: 16.1%
- Pacific: 6.5%
- Middle East: 0.2%Selfwealth
The ETF encompasses a wide range of sectors, including Information Technology, Financials, Health Care, Industrials, and Consumer Discretionary, among others. This diversification helps investors mitigate risks associated with investing in a single market or sector.Vanguard Fund Docs
Key Benefits of Investing in VGS
- Broad Diversification: With holdings in over 1,400 companies, VGS provides extensive exposure to global markets.
- Cost-Effective: Vanguard is known for its low-cost investment options, making VGS an affordable choice for investors.
- Regular Distributions: The ETF offers quarterly distributions, providing a potential income stream for investors.
- Liquidity: Being listed on the ASX, VGS offers the convenience of trading during market hours with relative ease.