I believe it could be the perfect time to buy the Vanguard MSCI Index International Shares ETF (ASX: VGS).

About Vanguard MSCI Index International Shares ETF

Firstly, let me tell you about Vanguard if you don’t already know. It’s one of the world’s biggest providers of exchange-traded funds (ETFs). It’s special because it’s not trying to make heaps of money from its investors. Instead, the owners of Vanguard are the investors. Vanguard shares the profit with investors in the form of lower fees.

This particular ETF invests in the entire global share market. It’s invested in almost every major share market such as the US, Japan, the UK, Switzerland, France, Canada, Germany, the Netherlands, Hong Kong, Sweden and so on.

Vanguard MSCI Index International Shares ETF also has attractive diversification in the sense of the different industries it’s invested in. The biggest allocation is 20% to IT, followed by 14.7% to health care, 12.7% to financials, 10.9% to consumer discretionary, 10% to industrials, 9% to communication services and 8.7% to consumer staples.

In terms of actual holdings it’s invested in almost 1,600 businesses. But its top holdings are: Apple, Microsoft, Amazon, Alphabet, Facebook, Johnson & Johnson, Nestle, Visa, JPMorgan Chase and Proctor & Gamble.

Why I think it’s a good time to buy

This could be one of the easiest investments to hold for the long-term in any environment because of the Vanguard ETF’s diversification. It also has a very low management fee. It’s not the cheapest out there, but 0.18% per annum is great for the global nature of it.

I think it’s a good time to buy for two reasons. Number one is that Vanguard MSCI Index International Shares ETF is still 11% lower than its pre-coronavirus high. Bearing in mind that interest rates are now incredibly low, that’s not bad at all if you’re a long-term investors. Granted, there could be more declines later this year. Particularly with the US election coming up. 

Second, the Australian dollar has significantly recovered. The Aussie dollar now buys US$0.66. During the worst part of the crash it was under US$0.60. This gives us more buying power to buy international shares compared to nearly all of April and May.

More reading

• Buy these 4 ASX shares to diversify your portfolio
• The importance of diversifying your ASX portfolio and how you can do it
• ASX shares can help millennials retire before their parents
• How to make a $1 million share portfolio by investing $1,000 a month
• Is the Vanguard MSCI Index International Shares ETF the best long-term investment?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why it could be the perfect time to buy this Vanguard ETF appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/36Dt48s

On Thursday the S&P/ASX 200 Index (ASX: XJO) returned to form and stormed notably higher. The benchmark index climbed 1.3% to 5,851.1 points.

Will the market be able to build on this on Friday? Here are five things to watch:

ASX 200 expected to drop lower.

The ASX 200 looks set to end a fantastic week with a day in the red. According to the latest SPI futures, the benchmark index is expected to open the day 19 points or 0.3% lower this morning. This follows a weak night of trade on Wall Street which saw the Dow Jones fall 0.6%, the S&P 500 drop 0.2%, and the Nasdaq fall 0.45%.

Oil prices rebound.

Energy producers such as Oil Search Limited (ASX: OSH) and Santos Ltd (ASX: STO) could be on the rise today after oil prices rebounded. According to Bloomberg, the WTI crude oil price climbed 2.5% to US$33.63 a barrel and the Brent crude oil price rose 1.5% to US$35.27 a barrel. Higher U.S. gasoline demand supported oil prices.

Gold price pushes higher.

Gold miners such as Northern Star Resources Ltd (ASX: NST) and St Barbara Ltd (ASX: SBM) will be on watch after the gold price pushed higher. According to CNBC, the spot gold price is up 0.3% to US$1,731.70 an ounce. The precious metal pushed higher on concerns over U.S.-China tensions.

Costa annual general meeting.

The Costa Group Holdings Ltd (ASX: CGC) share price will be one to watch this morning when the horticulture company holds its annual general meeting. Costa is very likely to provide an update on how it is performing during the pandemic. Last month the company withdrew its guidance because of the crisis.

Nearmap rated as a buy.

The Nearmap Ltd (ASX: NEA) share price could be on the move again on Friday after analysts at Goldman Sachs reaffirmed their buy rating on its shares. This follows the release of the aerial imagery technology and location data company’s market update on Thursday. The broker has increased its price target on Nearmap’s shares to $2.55.

More reading

• ASX 200 rises again, ASX banks push higher
• These ASX tech shares could take your portfolio to the next level
• Why ANZ, Blackmores, IDP Education, & Nearmap shares are racing higher
• Why the Nearmap share price has surged 15% higher today
• ASX 200 up 2.4%: Blackmores raises $92m, big four banks jump, Nearmap rockets

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO and Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 5 things to watch on the ASX 200 on Friday appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2XCMpCx