Vanguard MSCI International Shares ETF Remains Top Choice for Global Equity Exposure

The Vanguard MSCI International Shares ETF (ASX:VGS) has maintained its position as the default global equity allocation for Australian portfolios, despite growing competition in the market. The fund's asset base has swelled over the year as investors continue to seek offshore exposure to balance their domestic portfolios.

The fund tracks a broad developed market index that excludes Australia and weights companies by market value. It has a large number of underlying positions, delivering genuine breadth at the company level, although index weightings remain heavily concentrated among the biggest names.

One of the criticisms leveled at the developed market approach is the exclusion of emerging markets. However, the fund's structure remains straightforward and transparent, with no currency hedge on the standard version, allowing exchange rate movement to flow straight through to the Australian dollar return.