Three ASX ETFs that give investors access to US markets

Summary

  • An exchange traded fund (ETF) tracks an index, sector, commodity, or other asset but trades on the stock exchange just like a regular stock.
  • ETFs are beneficial to investors since these have low expense ratios and fewer broker commissions.
  • iShares S&P 500 ETF and Betashares NASDAQ 100 ETF are among ASX ETFs that can be considered by investors to get an exposure to US markets.

An exchange traded fund (ETF) tracks an index, sector, commodity, or other asset but trades on the stock exchange just like a regular stock.  ETFs can have all types of investments such as stocks, commodities, or bonds etc. These funds are beneficial to investors since these have low expense ratios and fewer broker commissions.

Even as the ASX 200 consists of several attractive companies, investors’ exposure to certain sectors such as tech remains limited. It is where the exposure to US markets can help. Investors can easily access some of the best stocks globally via US markets, using ASX-listed ETFs.

READ MORE: Seven exciting real estate fund managers on the ASX

Here are three such ASX ETFs that have lately gained traction in terms of price momentum/latest developments. However, one needs to do thorough research before taking any exposure, as sinusoidal market trends are evident.

READ MORE: A glance at eight ASX-listed SaaS stocks

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iShares S&P 500 ETF (ASX:IVV)

The ETF is among the most widely tracked funds globally. iShares S&P 500 ETF provides investors an access to the top 500 US stocks ranging from Apple to Microsoft. The fund is managed by BlackRock Investment Management (Australia) Ltd. It seeks to match the return of the S&P 500, before fees and expense, and issues dividend on a quarterly basis.

Investors can access the large cap US stocks via single investment and diversify their portfolio globally. The ETF is known to offer long-term growth opportunities to investors.

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The ETF gave an average return of nearly 18% per annum in the last ten years. It is among the ETFs on the ASX with lowest management fees (0.04% per annum).

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Betashares NASDAQ 100 ETF (ASX:NDQ)

Betashares NASDAQ 100 ETF is also one of the largest ETFs in the world. The fund tracks the 100 leading non-financial companies listed on the NASDAQ, including Amazon, Apple, and Facebook. NASDAQ mostly consists of tech companies. The tech companies are among the best performers on the index in the past five years.

READ MORE: Which are the top 20 ASX-listed companies by market capitalisation?

The fund gave a return of over 30% to investors in the past one year. Over the last three years, the ETF gave an average annual return of 27.52%, and 26.35% per annum in the last five. The investors have received an average return of 20.94% since its inception in May 2015. The fund has a management fees of 0.48% per annum.

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VanEck Vectors Morningstar Wide Moat ETF (ASX:MOAT)

VanEck Vectors Morningstar Wide Moat ETF is not an index fund but can be termed as an ‘active ETF’. The fund invests in firms with a wide economic moat. It works with Morningstar to design a portfolio of 40 US shares with signs of ‘wide moat’.

The fund’s holdings include Pfizer Inc, Boeing Co, etc. The fund has a management fees of 0.49% per annum. Investors have received an average of 20.38% per annum since its inception in 2015.

READ MORE: What does an economic moat mean?

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