Investing in international ETFs

It has never been easier for Australian investors to broaden their investment horizons and diversify their portfolios by investing in international ETFs.

 

Betashares offers a wide selection of international ETFs and funds that provide access to a range of asset classes, regions, and sectors – or even the whole world. Betashares international funds make it simple to allocate part of your portfolio to international stocks.

What are international ETFs?

An ETF is an investment fund, similar to a traditional managed fund, but bought and sold on a stock exchange just like any share. ETFs aim to closely track the performance of an index or asset class, and provide the returns of that index or asset class – less any fees. International ETFs enable you to invest in overseas markets and sectors by tracking a particular index. For example, an international ETF could track:

  • A country-specific index e.g. F100 FTSE 100 ETF , which aims to track the price and income performance (before fees and expenses) of the largest 100 companies traded on the London Stock Exchange, based on their market capitalisation
  • A regional index e.g. HEUR Europe ETF – Currency Hedged , which aims to track the performance of globally competitive eurozone companies
  • A global index e.g. QLTY Global Quality Leaders ETF , which aims to track the performance of 150 global companies ranked by highest quality score
  • A global sector index e.g. NDQ NASDAQ 100 ETF , which aims to track the performance of the Nasdaq-100 Index. Another example is our HACK Global Cybersecurity ETF , which aims to track the performance of the leading companies in the global cybersecurity sector

How to buy international ETFs

An international ETF can be bought and sold on the ASX in Australian dollars during ASX trading hours, just like any other share.

Read here for key trading considerations including the best hours to trade international ETFs and understanding the net asset value (NAV).

Are international ETFs a good investment?

The Australian sharemarket is heavily concentrated, with significant weightings in particular to the financial and resources sectors. As a result, many Australian investors hold portfolios that are not well-diversified.

There are a number of other sectors that have strong growth potential on a global scale, but which are under-represented on the ASX and so traditionally have been difficult for Australian investors to access directly. Sectors such as healthcare, technology and cybersecurity offer significant growth potential as the global population and life expectancy rises and as our lives increasingly turn online. However, few Australian companies operate in these sectors.

For Australian investors looking to gain exposure to these sectors, ETFs available on the ASX include the NDQ NASDAQ 100 ETF or HNDQ NASDAQ 100 ETF – Currency Hedged and the HACK Global Cybersecurity ETF .

Does investing in a Betashares International ETF mean extra paperwork?

All Betashares Funds are Australian-domiciled, which means there is no additional paperwork or administration when you buy any of our international funds. You are not required to complete US W8-BEN forms or risk any estate tax implications, both of which are a possibility when investing in non-Australian domiciled (or “cross-listed”) ETFs.

Explore our international ETF range

Broad Global

 

Equity Income

 

Regional & Country Exposure

 

Managed risk

 

Ethical

 

Geared

 

Short

Global Sectors

 

Currency Hedged

Investing involves risk. The value of an investment and income distributions can go down as well as up. Before making an investment decision you should consider the relevant Product Disclosure Statement (available at www.betashares.com.au) and your particular circumstances, including your tolerance for risk, and obtain financial advice. An investment in any Betashares Fund should only be considered as a component of a broader portfolio.