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 Index Fund invests in invests in around 1,700 shares listed on the exchanges of 22 of the world's major economies providing maximum diversification and lower risk than many funds. Because the fund is unhedged the fund achieves currency diversification as well.
Who it may suit
- long-term investors (usually seven years plus)
- investors seeking long-term capital growth
- those wanting to add diversification by investing overseas
- investors using a core/satellite strategy seeking an index fund for the core of their international shares portfolio
- self managed super funds
- higher income earners using a gearing strategy
Objectives
To match the total return of the MSCI World ex-Australia Index (with net dividends reinvested) in AUD before taking into account fund fees and expenses
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 |
|
| Unhedged currency exposure |
|
| Low fees |
|
| Flexibility |
|
Investment requirements and fees
| Minimum investment amounts | |
| Initial investment |
$500,000
|
| Additional investments |
Nil
|
| Holding balance |
Nil
|
| Switch/withdrawal |
Nil
|
| Buy/sell spread* | |
| Purchase |
+0.30%
|
| Withdrawal |
-0.10%
|
| Management costs | |
| Management costs |
0.36% p.a.
|
* Note that the sell spread is an estimate. There may be circumstances where the sell spread will be lower or higher - for example, the sell spread may be higher when there are large or prolonged withdrawals from the fund. In these circumstances, the sell spread could potentially be as much as the buy spread for the fund.
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 Index Fund 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.
