IVVvsVGS
Should you invest in America specifically or diversify globally?
iShares S&P 500 ETF · Vanguard MSCI Index International Shares ETF
IVV is 100% US equities (S&P 500); VGS spans 23 developed markets with ~70% US weight. IVV has outperformed during US bull markets, but VGS spreads risk across Europe, Japan and other developed economies. The question is: targeted US bet or broader developed-market diversification?
Score Breakdown
Fund Profiles
As one of the world's most recognised index funds, IVV tracks the S&P 500 Index and is managed by BlackRock's iShares, giving ASX investors access to America's 500 largest companies. Listed on the ASX in Australian dollars, the fund provides unhedged exposure, meaning returns are influenced by movements in the AUD/USD exchange rate alongside underlying equity performance. IVV serves as a core international holding for Australian investors comfortable with US dollar currency exposure and seeking broad, low-cost access to the world's deepest equity market.
Vanguard's VGS is one of Australia's most popular international ETFs, tracking the MSCI World ex-Australia Index across 23 developed markets with approximately 1,500 holdings. The fund is unhedged, meaning returns include the effect of currency movements, and carries a heavy US weighting of roughly 70 per cent, reflecting America's dominance in global equity markets. Investors seeking a simple, low-cost core international equity holding to pair with an Australian ETF like VAS - building a two-fund global portfolio - will find VGS an ideal foundation for long-term wealth building.