Australian equities represent less than 2.5% of the global stock market capitalisation,2 with thousands of international stocks, the opportunity really is too big to ignore.
Diversifying Internationally with ETFs
ETFs can be a highly effective way to tap into the growth potential of international equity markets, without the complexities of a direct investment.
One of the attractions of investing internationally via an ETF is the broad market exposure offered. This means you are not reliant on the performance of a handful of stocks, rather you have exposure to hundreds or even thousands of companies, some well-known, others not.
Investing internationally also does not necessarily mean higher expenses. Through an ETF, you can gain exposure to perhaps the most famous index of all, the S&P 500®, all at less than 1/10th of a percent management expense ratio (MER).
ETFs also bring a level of transparency that is arguably unmatched in the investment industry. On a daily basis, for many ETFs, you can see what the ETF holds and where the funds are invested.
With a range of international funds, SPDR ETFs allow you to tailor your exposure across the US, international equities, emerging markets and more:
- The SPDR S&P Global Dividend Fund (WDIV) turns on your income potential. It contains approximately 100 international stocks that have an uninterrupted 10-year track record of stable or increasing dividends. You can gain diversification without excess concentration thanks to sector, country and stock Capitalisation, with a single trade.
- The SPDR Dow Jones Global Real Estate Fund (DJRE) unlocks the potential of global property exposure. You can access approximately 200 prime real estate securities across approximately 20 countries – with a single trade.
- The SPDR MSCI World Quality Mix Fund (QMIX) assists in managing market uncertainty. It is a solution that aims to capture gains in improving markets while at the same time mitigating risk during periods of market volatility – upside participation with downside protection.
- The SPDR S&P World ex Australia Fund (WXOZ) and SPDR S&P World ex Australia (Hedged) Fund (WXHG) delivers international equity market exposure. Each fund contains approximately 1,500 international stocks and provides the flexibility to take or remove (hedge) currency exposure (or a combination), with a single trade (or two).
- The SPDR S&P Emerging Markets Fund (WEMG) provides diversified exposure to fast-growing markets that are difficult to invest in directly from Australia. SPDR S&P Emerging Markets Fund delivers exposure to China (and its disruptive Technology Services industry), Korea (with its strong Electronic Technology industry), Taiwan (including Electronic Technology and Process Industries), India (Technology Services and Energy Materials), and Brazil (Energy and Non-Energy Minerals).
- The SPDR S&P 500 ETF Trust (SPY) gives you exposure to some of the most innovative and successful companies in the US.
ETFs provide arguably the most transparent, accessible and cost-effective way to construct portfolios.