Investing internationally can increase your diversification and give access to industries and companies not available in Australia. After all, Australia represents less than 2% of the total world sharemarket.
Vanguard's International Shares (Hedged) option invests in most of the securities in the index providing maximum diversification and lower risk than many funds. The option is fully hedged into the Australian dollar so you can invest in international sharemarkets without currency fluctuations impacting your return.
Who it may suit
- long-term investors (usually seven years plus)
- investors seeking long-term capital growth
- investors using a satellite/core strategy seeking an index fund for the core of their international shares portfolio
- investors seeking an international investment without the currency impact
- those wanting to add diversification by investing overseas
- investors seeking a tax-effective investment
Objectives
To match the total return of the MSCI World ex-Australia Index (with net dividends reinvested) hedged into Australian dollars before taking into account fees, expenses and taxes.
Benefits
| Diversification |
|
| Capital growth potential | offers long-term capital growth potential through its diversified portfolio of international shares |
| Access investment opportunities not available in Australia |
|
| Fully hedged into the Australian dollar |
|
| Low fees |
|
Investment requirements and fees
| Minimum investment amounts | |
| Initial investment |
$100,000
|
| Buy/sell spread | |
| Purchase |
+0.35%
|
| Withdrawal |
-0.15%
|
| Management costs | |
| Management costs | 0.36% p.a. |
| Member account keeping fee | Nil |
|
Administration/plan management fee For the first $50,000 For the balance over $50,000 |
0.75% p.a. 0.50% p.a. |
Risk/return profile
At Vanguard, we believe it's just as important to understand the risks and costs of investing, as it is to know about the rewards.
Our risk/return profiler illustrates the expected risk level and potential return for the Vanguard International Shares option based on historical data. It's important to remember that past performance is no guarantee of future performance and the risk/return profile of each fund may vary from year to year.
