Best International ETFs on the ASX

The best international ETFs on the ASX right now are VGS, BGBL, NDQ, and IVV — each suited to a slightly different investor. VGS and BGBL offer broad developed-market exposure across 20-plus countries, NDQ concentrates on US technology, and IVV targets the S&P 500 at a rock-bottom fee of 0.04% per year. All four trade on the ASX through any major broker and can be combined into a simple, low-cost global portfolio.

General information only. This article does not constitute financial advice. Consider your own circumstances before making investment decisions.

The Australian share market represents less than 2% of global market capitalisation. That single fact explains why most serious long-term investors allocate a meaningful chunk of their portfolio overseas. International ETFs do the heavy lifting — instant diversification, access to companies like Nvidia, Microsoft, and LVMH that don’t trade locally, and built-in currency exposure that can benefit Australian investors when the AUD weakens.

VGS — The Default for Most Australian Investors

Vanguard MSCI Index International Shares ETF (VGS) is the most widely held international ETF on the ASX. It tracks the MSCI World ex-Australia Index, giving exposure to over 1,500 companies across 23 developed markets. The management expense ratio (MER) sits at 0.18% per year — that’s $18 annually on every $10,000 invested.

The US makes up roughly 72% of the index weighting, which accurately reflects where global market cap actually sits. Japan, the UK, France, and Canada round out the top five country exposures. VGS is unhedged, meaning your returns move with AUD/USD fluctuations — generally a tailwind when the Australian dollar softens.

For most buy-and-hold investors starting their international allocation, VGS is the sensible first call. It’s liquid, well-established, and Vanguard’s structure keeps fees honest over the long run.

BGBL — The Cheapest Broad Global Option

BetaShares Global Shares ETF (BGBL) is worth stacking directly against VGS. It tracks the Solactive GBS Developed Markets Large & Mid Cap Index at just 0.08% per year — less than half VGS’s fee. On a $50,000 portfolio, that’s roughly $50 in annual savings. Over 20 years of compounding, that gap is real money.

BGBL’s country and sector breakdown is closely comparable to VGS, covering similar large and mid-cap developed-market companies. If fee minimisation is your priority and you’re comfortable with the Solactive benchmark rather than MSCI, BGBL is a genuine alternative. BetaShares also offers HGBL — the currency-hedged version at 0.12% per year — for investors who want to strip out AUD volatility.

NDQ — High-Conviction US Tech Exposure

BetaShares NASDAQ 100 ETF (NDQ) is not a broad international ETF. It’s a concentrated position in the 100 largest non-financial companies listed on the NASDAQ — meaning heavy weighting to Apple, Microsoft, Nvidia, Amazon, and Meta, which together make up over 40% of the portfolio.

The MER is 0.48% per year, the steepest on this list, but NDQ has historically earned that fee through outsized long-term returns for patient investors. Treat it as a satellite holding — 10–20% of an international allocation — rather than the core. If you already hold VGS or BGBL, adding NDQ tilts your portfolio further toward US technology rather than genuinely broadening it.

IVV — Rock-Bottom Fees, Pure US Exposure

iShares S&P 500 ETF (IVV) tracks the 500 largest US-listed companies with an MER of 0.04% per year — the lowest fee of any ETF on the ASX. That’s $4 a year on a $10,000 holding. It provides less geographic diversification than VGS (US-only), but for investors who believe US large-cap equities are the essential core of any global equity portfolio, IVV’s cost advantage compounds meaningfully over decades.

IVV also has excellent liquidity and consistently tight bid-ask spreads, which matters when trading larger parcels.

Which International ETF Is Right for You?

Here’s a practical framework:

• New investor, want simplicity: VGS or BGBL as a single holding
• Purely fee-focused: BGBL at 0.08% is the best value for global coverage
• Want to remove currency risk: VGAD (hedged VGS, 0.21%) or HGBL (hedged BGBL, 0.12%)
• US tech tilt: Add NDQ as a satellite alongside a core global ETF
• Minimising cost on US exposure only: IVV at 0.04%

A clean two-ETF approach that many Australian investors use: BGBL as the broad global core, with NDQ at roughly 15–20% for technology tilt. That combination covers most of the developed world at an average fee below 0.15%, without overcomplicating the portfolio.

Frequently Asked Questions

What is the cheapest international ETF on the ASX?

IVV (iShares S&P 500 ETF) is the cheapest at 0.04% per year, though it’s limited to US companies. For broad global developed-market coverage, BGBL at 0.08% is currently the most cost-effective option on the ASX, undercutting the more popular VGS by more than half.

Should I choose a hedged or unhedged international ETF?

Unhedged ETFs like VGS and BGBL give you natural currency diversification — when the AUD falls, your international returns improve in Australian dollar terms. Hedged versions like VGAD and HGBL remove that variability. Most long-term investors prefer unhedged, but hedging can reduce short-term volatility if you’re approaching the drawdown phase of your investing life.

Can I hold more than one international ETF on the ASX?

Yes, and many investors do. The important thing is to check the underlying holdings before combining. VGS and BGBL are very similar, so holding both adds little diversification. VGS paired with NDQ is a common combination, but note that both carry heavy US weighting — you’re adding sector concentration, not geographic diversification. Combining VGS with an emerging markets ETF like VGE gives you broader global coverage with less overlap.