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VGS

$142.55-0.07%Global / All World77/100
Fund Page ↗

Vanguard MSCI Index International Shares ETF · Vanguard

Data as at 29 March 2026

TL;DR

Tracks approximately 1,400 large and mid-cap companies across 23 developed market countries, excluding Australia. The most popular international equity ETF in Australia by AUM at 0.18% per year.

MER (Annual Fee)
0.18%
#3 lowest in Global / All World
1Y Return
+6.4%
3Y Return (p.a.)
+16.4%
Dividend Yield
2.44%
Trailing 12 months
AUM
$45,146.7M
Assets under management
Avg Daily Turnover
$15.0M
Avg shares × unit price
Unit Price
$142.55
As at 29 March 2026
Provider
Vanguard
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Strategy

Follows the MSCI World ex-Australia Index using physical replication. Covers the US, Europe, Japan, UK, Canada, and other developed markets. Managed by Vanguard.

Top Holdings

Apple
4.5%
Microsoft
4.1%
NVIDIA
3.9%
Amazon
2.4%
Meta
1.6%
Alphabet
1.5%
Berkshire Hathaway
1.1%
Eli Lilly
0.9%
Broadcom
0.8%
JPMorgan
0.8%
Key Fact

Despite being described as a global fund, VGS has about 70% US exposure. The reason is straightforward: the US stockmarket is the world's largest by a wide margin, and MSCI weights each country by market capitalisation.

Suited for

Investors wanting a single fund for developed-world equity exposure outside Australia. VGS is the standard international equity holding in many Australian portfolios.

Risks

Approximately 70% of the fund is invested in US stocks, despite covering 23 countries. The MSCI World index weights countries by market cap, so the US dominates because of the size of its stockmarket.

VGS Comparisons

ETFCheck Score77/100
Fees (40%)73
Fund Size (25%)100
Liquidity (20%)66
Yield (15%)63
How scores are calculated →
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Frequently Asked Questions - VGS

Why do most Australian SMSFs use VGS as their core international holding?+
VGS offers instant diversification across roughly 1,500 stocks in 23 developed markets through a single ASX trade, making it the simplest way for SMSF trustees to gain global equity exposure. With over $45 billion in AUM, it has deep liquidity and tight bid-ask spreads, reducing trading costs. Its 0.18% MER strikes a balance between cost efficiency and Vanguard's trusted index-tracking reputation, which is why it remains Australia's second-largest ETF.
How does VGS's ~70% US weighting affect my portfolio risk?+
VGS tracks the MSCI World ex-Australia index, which currently allocates approximately 70% to US equities due to market-cap weighting. This means your returns are heavily influenced by US mega-caps like Apple, Microsoft, and NVIDIA. Australian investors should consider whether they want to complement VGS with emerging market exposure through funds like VGE, or add small-cap coverage via VISM, to reduce single-country concentration risk.
What are the tax implications of VGS distributions for Australian investors?+
VGS distributions are paid semi-annually and typically comprise foreign-sourced income with no Australian franking credits. However, investors may be entitled to foreign income tax offsets (FITO) where US withholding tax has been applied, which can reduce your ATO tax liability. Capital gains from selling VGS units held over 12 months qualify for the 50% CGT discount for individual investors, making it relatively tax-efficient for long-term holders.
Should I choose VGS or BGBL to save on fees?+
BGBL charges just 0.08% MER compared to VGS's 0.18%, saving roughly $100 annually per $100,000 invested. BGBL tracks a Solactive index that is over 99% correlated with VGS's MSCI World benchmark, so return differences are minimal. However, VGS has significantly larger AUM and tighter spreads, and some investors prefer MSCI's established methodology. For cost-conscious buy-and-hold investors, BGBL is compelling, but VGS offers greater liquidity and brand trust.