Vanguard MSCI International Small Companies ETF (VISM) $69.28

The VISM ETF seeks to track the return of the MSCI World ex-Australia Small Cap Index (unhedged, with net dividends reinvested) in Australian dollars before costs; it currently holds 3854 diverse positions, all of which are less than 1%. Across the globe, the VISM’s current exposure is led by 59% in the US, 13% in Japan, 5% in the UK, 4% in Canada, and 2% in Sweden. If we are correct and global small caps push to a new high through 2025, this ETF has 5-8% upside, having already enjoyed some performance catch-up.

• The VISM ETF has a relatively small 0.33% expense ratio and tracks its benchmark very well; for example, over the last 3 years, the VISM has advanced by 13.9% while the MSCI World ex-Australia Small Cap Index has also gained 13.9%.

The VISM looks capable of following the MM roadmap into Christmas, testing the 72-75 area, although we see less upside than the ASX-focused ETFs.

• We are bullish on the VISM ETF and initially target a test/break of $72, or 5% higher.