How to Select a US-Focused ASX ETF for the Current Market Conditions

April 22, 2025 09:25 PM AEST | By Team Kalkine Media
 How to Select a US-Focused ASX ETF for the Current Market Conditions

Highlights

  • ASX ETFs offer Australian investors access to US equity markets, a viable option amidst volatility.

  • Popular US-focused ETFs on the ASX include Vanguard US Total Market Shares Index and iShares S&P 500 AUD ETF.

  • Different ETFs cater to various investor preferences, from broad market exposure to specific indices.

For Australian investors looking to access the US equity market amid ongoing volatility, Exchange Traded Funds (ETFs) are a popular avenue. Recent fluctuations in the US market, due to both geopolitical events and internal corporate changes, have led many to seek ways to gain exposure to US equities without directly purchasing individual stocks. US-focused ETFs available on the ASX offer an effective solution to this. These ETFs allow investors to diversify their portfolios with US-based assets while managing costs and risks.

Vanguard US Total Market Shares Index AUD ETF

The Vanguard US Total Market Shares Index AUD ETF is one of the largest and most diversified ETFs on the ASX. It tracks the entire US market, including a wide range of companies from large-cap to micro-cap stocks. The fund holds thousands of securities, making it a suitable choice for those looking to match the performance of the broader US economy. Its low management fee is another appealing aspect for those who seek cost-efficient options. The ETF covers sectors ranging from technology to healthcare, offering broad exposure across industries.

iShares S&P 500 AUD ETF

For those with a preference for large, well-established companies, the iShares S&P 500 AUD ETF offers exposure to the 500 largest companies listed on the US stock exchanges. It tracks the performance of the S&P 500 Index, which is often viewed as a reflection of the overall US market. Like the Vanguard ETF, this option also comes with a low management fee, making it an accessible choice for cost-conscious investors. While this fund focuses on the biggest players in the US economy, it may appeal to those who prefer stability over high-growth prospects.

Betashares Nasdaq 100 ETF

Another popular choice for those interested in the technology sector is the Betashares Nasdaq 100 ETF. This ETF tracks the performance of the Nasdaq-100 Index, which includes the 100 largest non-financial companies listed on the Nasdaq. The Nasdaq-100 is heavily weighted toward the technology sector, making this ETF a prime option for those looking to access high-growth tech companies. Given the prominence of tech companies like Apple, Microsoft, and Amazon within this index, this ETF offers targeted exposure to the technology-driven economy of the US.

Selecting the Right US-Focused ETF

Choosing the right ETF depends on the investor’s preference for diversification, sector focus, and cost structure. For those seeking broad exposure to the entire US market, the Vanguard ETF offers a balanced approach. On the other hand, the iShares S&P 500 ETF focuses solely on large-cap stocks, while the Betashares Nasdaq 100 ETF concentrates on the technology sector. Each ETF provides a unique way to access US markets while tailoring to different risk tolerances and investment goals.

With the recent volatility in the US markets, including shifts in trade policy and sector-specific downturns, selecting the right ETF can help investors navigate uncertainty. Whether an investor seeks broad exposure or prefers targeting specific sectors, ASX-listed US ETFs offer a range of options to align with diverse investment strategies.


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