3 ASX ETFs for exposure to U.S. stocks

The following ASX-listed ETFs provide an easy and cost-effective way to gain exposure to US equities which can add diversification and deliver exceptional returns over time.

iShares S&P 500 ETF (ASX: IVV)

gives exposure to the S&P 500 index which tracks the performance of the 500 largest US companies by market capitalisation and represents the core of the US equity market.
The ETF offers instant diversification across large, mid and smaller constituents within the index although returns are influenced by mega-cap technology leaders such as Apple, Microsoft and Nvidia.

A major attraction is its low expense ratio of just 0.04% per annum which makes it one of the most cost-efficient ways to invest in US equities.

IVV has delivered strong long-term performance with a five-year CAGR of around 17.5% which reflects the resilience and growth of US corporate earnings.

Overall, the ETF suits investors who want low-cost, diversified exposure to the US market with long-term growth driven by innovation, scale and global leadership of American companies.

Global X FANG+ ETF (ASX: FANG) 

offers concentrated exposure to just 10 leading US technology and internet companies which makes it a high conviction growth ETF rather than a broad market tracker.

The portfolio includes six of the Magnificent Seven along with CrowdStrike, Netflix, Broadcom and Palantir which provides targeted access to some of the world’s most dominant and innovative businesses.

FANG tracks the NYSE FANG+ Index which is equally weighted and this structure ensures that no single stock dominates the portfolio.

Since its inception in 2020, the ETF has delivered average total returns of almost 30% per annum which highlights the strong growth delivered by global technology leaders over this period.
The fund charges an expense ratio of 0.35% per annum and while the narrow portfolio results in higher volatility compared to diversified ETFs, it also creates the potential for stronger upside during technology led market rallies.

Vanguard MSCI International Shares Index ETF (ASX: VGS) 

provides broad exposure to global markets outside Australia by tracking the MSCI World ex-Australia Index with net dividends reinvested in Australian dollars.

The ETF invests in more than 1,200 large and mid-cap companies across developed markets which offers diversified exposure to global leaders in sectors such as technology, healthcare, financials and industrials.

VGS is commonly used as a core portfolio holding for Australian investors who want international diversification without the complexity of direct offshore investing and about 70% of portfolio comprises of US stocks.

The ETF has an expense ratio of 0.18% per annum and suits long-term investors who want simple and low-cost access to global equity growth outside Australia supported by Vanguard’s scale and proven index management approach.

(Source: Company Announcements)