The Vanguard All-World ex-US Shares Index ETF (ASX: VEU) could be a smart option for investors wanting global exposure beyond Wall Street.
Here are three reasons this ASX exchange traded fund (ETF) could be worth considering.
It gives exposure to the rest of the world
The VEU ETF is designed to give investors access to companies listed globally but outside the United States.
That makes it very different from popular US-focused ETFs that track the S&P 500 or Nasdaq 100 such as the iShares S&P 500 AUD ETF (ASX: IVV) and the Betashares Nasdaq 100 ETF (ASX: NDQ).
The fund can hold shares from both developed and emerging markets, giving investors exposure to regions such as Europe, Japan, Canada, Asia, and other parts of the global economy.
This can be useful because many portfolios are already heavily exposed to the United States through global ETFs, technology funds, and individual shares. The Vanguard All-World ex-US Shares Index ETF offers a way to look beyond Wall Street.
It can help with diversification
Diversification is one of the main reasons investors use ETFs.
The Vanguard VEU ETF can help because it spreads money across a large number of international companies, sectors, and countries.
That means investors are not relying only on Australia's banks and miners, or only on America's technology giants, to drive long-term returns. This can be particularly attractive when market leadership changes.
There will be periods when US shares outperform almost everything else. But there can also be times when international markets, emerging economies, European industrials, Asian manufacturers, or global consumer brands perform strongly.
This ASX ETF gives investors a broader opportunity set without needing to pick the right overseas shares one by one.
It can work well alongside US ETFs
The VEU ETF does not need to replace US exposure. In fact, one of its best uses may be alongside a US-focused ETF.
An investor could use an S&P 500 ETF or US total market ETF for American exposure, then add the Vanguard All-World ex-US Shares Index ETF for the rest of the world.
That creates a more deliberate global portfolio. It also gives investors more control than relying on a single global ETF that may already be heavily weighted toward the United States.
Foolish takeaway
The VEU ETF offers a simple way to broaden a portfolio beyond the most crowded part of the global share market.
For investors who already have plenty of US exposure, that could make it a very useful ASX ETF to buy and hold.
The post 3 reasons to buy the Vanguard VEU ETF appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Vanguard International Equity Index Funds - Vanguard Ftse All-World ex-US ETF. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2026