Investment
Vanguard US Total Market Shares Index ETF
Investing internationally offers investment diversification and access to industries and companies not available in Australia. After all, the Australian sharemarket represents less than 3% of the total world sharemarket while the US market accounts for approximately 55%.*
International shares are considered higher risk, higher return investments and are suited to longer-term investors (seven years plus).
The Vanguard US Total Market Shares Index ETF seeks to track the performance of the overall U.S. stockmarket using the benchmark MSCI® US Broad Market Index which represents approximately 99.5% of the total market capitalisation of all the U.S. common stocks regularly traded on the New York and American Stock Exchanges and the NASDAQ over-the-counter market. This ETF invests all, or substantially all, of its assets in a representative sample of the stocks that make up this index.
VTS is invested in US shares so there is a possibility that the value of a foreign investment, measured in Australian dollars, will decrease because of unfavourable changes in the currency exchange rates.
* MSCI ex Australia as at end February’09.
Exchange Traded Funds (ETFs) at a Glance*
* Information correct as of Apr 15 2009.