Why did the Vanguard MSCI Index International Shares ETF just hit a new 52-week high?

It ended up being a top day for the S&P/ASX 200 Index (ASX: XJO) during Monday’s session. By the close of trading, the ASX 200 had risen by a healthy 0.63% at 7,223 points. But one ASX exchange-traded fund (ETF) did even better than that. Yes, the Vanguard MSCI  Index International Shares ETF (ASX: VGS) had a great day, finishing up at $99.70 a unit, a market-beating rise of 1.24%. 

But that’s not all. This ETF also hit a new 52-week high this morning, climbing to the inherently pleasing mark of exactly $100 per unit.

That’s the Vanguard International Shares ETF’s new 52-week high. It’s also the highest this ETF has traded at since February 2022.

So why has this ETF cracked a new high today, and beat the ASX 200 in the process?

Well, this ETF doesn’t have a lot to do with ASX shares at all. The Vanguard International Shares ETF is an index fund. But one that tracks the MSCI World ex-Australia Index. This index represents more than 1,500 individual shares that hail from most of the advanced economies around the world.

You’ll find shares from the United Kingdom here, as well as from Canada, Europe, Japan, Hong Kong, Singapore and Israel, amongst others. But it is the United States and its companies that really dominate this ETF, with almost 70% of the portfolio weighting.

Its largest holdings are the likes of Apple, Microsoft, Alphabet, Amazon.com and Tesla.

So to explain why the Vanguard International Shares ETF hit a new high today, these are the companies we should look to for an explanation.

Why did the Vanguard International Shares ETF hit a new 52-week high today?

And lo and behold, the US markets had a cracking session on Friday night (our time). The S&P 500 Index (SP: .INX) rose by 1.44% for a start. And many of this ETF’s top holdings had an even better time. For example, Apple shares were up 1.56%, Alphabet’s Class A shares rose by 2.8%, and Tesla stock rocketed by an impressive 6.24%.

So with numbers like that coming in for many of this ETF’s top holdings, it was always going to have a happy day today.

The Vanguard MSCI Index International Shares ETF is now up a healthy 9.49% year to date:

The post Why did the Vanguard MSCI Index International Shares ETF just hit a new 52-week high? appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon.com, Apple, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon.com, Apple, Microsoft, Tesla, and Vanguard Msci Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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