Your passport to international opportunities
The allure of overseas travel for Australian holiday makers is understandable. While Australia has great beaches and incredible natural wonders, overseas destinations offer ancient cultures, unique celebrations, mountains higher than 2,228 metres and man-made wonders thousands of years old. The affordability of international travel due to increased competitiveness among airlines and falling accommodation costs has made overseas holidays more accessible for Australians.
Likewise, ETFs listed on ASX have made international investing immediately accessible to Australians, without leaving home. ETFs are traded on the ASX, so via one trade investors are instantly accessing a world of opportunities.
The allure of international investing, like travel, is to access opportunities you cannot acquire locally. The Australian share market represents about 3% of the global stock market, so investing internationally opens up 97% of the world that you are missing out on if you only invest in Australian equities. There is no ASX equivalent of Google, Intel, Mastercard or Johnson & Johnson.
Australia is an economy coming off a commodity super-cycle. To access economies that are rapidly changing and are exposed to the trends fuelling global growth, you could just invest in an ASX listed multinational like BHP and hope for some indirect benefit or you could invest in an international equity ETF with exposure to technology and healthcare such as the Market Vectors MSCI World ex Australia Quality ETF (ASX code: QUAL).
The growth in international equity ETFs on the ASX has been extraordinary. In the past 12 months 23 new international ETPs (including ETFs) have been launched and assets under management have increased 75% surpassing $8 billion as at 30 September 2015.
To help investors capitalise on the benefits of international equity ETFs we have launched a new educational webpage including a number of short videos; http://www.marketvectors.com.au/etf-international/
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Frequently Asked Questions about this Article…
International investing allows Australian investors to access opportunities not available locally. The Australian share market only represents about 3% of the global stock market, so by investing internationally, you can tap into the remaining 97% of the world's opportunities.
Australian investors can easily invest in international markets through ETFs listed on the ASX. These ETFs provide instant access to global opportunities without the need to leave home.
Investing in international equity ETFs allows you to diversify your portfolio by gaining exposure to global growth trends and industries not present in Australia, such as technology and healthcare.
The Market Vectors MSCI World ex Australia Quality ETF (ASX code: QUAL) is an international equity ETF that provides exposure to high-quality companies in developed markets outside of Australia, focusing on sectors like technology and healthcare.
The growth of international equity ETFs on the ASX has been remarkable, with 23 new international ETPs launched in the past 12 months and assets under management increasing by 75%, surpassing $8 billion as of September 30, 2015.
To help investors understand the benefits of international equity ETFs, a new educational webpage has been launched, featuring short videos and other resources. You can visit it at http://www.marketvectors.com.au/etf-international/.
International investing is compared to overseas travel because both offer unique opportunities and experiences that are not available locally. Just as travel allows you to explore new cultures and wonders, international investing opens up a world of financial opportunities.
As the Australian economy comes off a commodity super-cycle, it highlights the importance of diversifying investments. By investing in international markets, you can access rapidly changing economies and trends that are driving global growth, beyond just commodities.
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