Vanguard MSCI International Shares (ex-Australia) ETF (ASX: VGS) $164.21

The VGS ETF, which has attracted significant inflows in recent months, provides broad exposure to a diversified portfolio of large- and mid-cap companies across developed global markets, excluding Australia. Two important points to recognise:

• This ETF isn’t hedged; hence, it comes with currency exposure of the country where shares are held, such as the US, Japan, Canada, the UK and Europe.
• While over 70% of the holdings are currently in US stocks, it’s not a pure S&P 500 play per se.

So far in 2026, the US index has led most global indices, meaning the VGS has slightly underperformed (less than 1%) a US-facing equivalent.

• We like the VGS ETF, positive on the risk/reward into dips, inline with our positive view on global equity markets – MM owns the International Shares ETF (VGS) in our Core ETF Portfolio.