Investing in international shares is something Australian investors don’t do enough of, in my opinion.

I mean, think about it. ASX shares only make up something like 2% of all the available equity in the world. So, if you just stick to the S&P/ASX 200 Index (ASX: XJO), you’re excluding yourself from over 98% of the potential opportunities out there.

There’s nothing wrong with ASX shares, but how many of them have a truly global presence in the way overseas shares like Apple, Alphabet or Mastercard do?

So with this in mind, here are the three best shares that can, in my view, help you easily gain access to the wider world of investing available beyond our shores.

BetaShares FTSE 100 ETF (ASX: F100)

The FTSE 100 index is the United Kingdom’s equivalent to our own ASX 200 however, as the name suggests, it consists of the UK’s top 100 companies by market capitalisation. The BetaShares FTSE 100 ETF tracks the performance of this index, providing investors with exposure to the 100 largest companies traded on the London Stock Exchange. Queen Elizabeth II may still be our head of state, but the UK is a world away. Therefore, I think investing in the largest British companies through this ETF is a great way to invest overseas and diversify an ASX share-focused portfolio.

F100’s top holdings include HSBC Bank, GlaxoSmithKline, British American Tobacco, BP, Royal Dutch Shell and even our own Rio Tinto Limited (ASX: RIO), which is dual-listed on the London Stock Exchange.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

If you want a simple, one-stop-shop solution to achieving global diversification in your ASX share portfolio, you needn’t look beyond this monster of an ETF. VGS holds more than 1,500 companies across the advanced economies of the world, including Japan, the UK, Switzerland, Canada and, of course, the United States. The biggest US companies like Microsoft and Amazon.com dominate this ETF, but you are also getting some other names like Toyota, LVMH, Nestle and Royal Bank of Canada.

For cheap, easy diversification across a portfolio of quality global companies, this ETF is definitely worthy of consideration.

MFF Capital Investments Ltd (ASX: MFF)

MFF is a slightly different investment to consider today if you want to invest overseas. It’s not an ETF, but rather a listed investment company (LIC). This means it is run by a fund manager rather than a computer algorithm. This fund’s manager is Chris Mackay. Mr Mackay is a co-founder of Magellan Financial Group Ltd (ASX: MFG) and an extremely well-regarded Aussie investor with considerable global experience.

MFF focuses mostly on US shares and has perennial performers like Visa and Mastercard as top holdings in its portfolio. Recently, MFF has stocked up on its cash position and is currently sitting with more than 45% of its assets in cash.

I like that MFF is making a bet against the crowd right now. I also think this LIC represents a great way of getting some contrarian investing strategies from the international stage into one’s ASX portfolio.

More reading

• Should I keep my stake at the current Monadelphous share price?
• All Technology Index sees stunning comeback
• Top brokers name 3 ASX 200 shares to buy today
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• ASX bank share prices tumble as they aren’t out of the COVID-19 woods yet

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Magellan Flagship Fund Ltd, Mastercard, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Mastercard, and Visa. The Motley Fool Australia has recommended Alphabet (A shares), Mastercard, and 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.

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The A2 Milk Company Ltd (ASX: A2M) share price has been a surprisingly poor performer over the last couple of months.

Since peaking at $19.23 in the middle of April, the fresh milk and infant formula company’s shares have been creeping lower.

Today they are changing hands for $17.65, which means they are now down over 8% from their high.

As a comparison, the S&P/ASX 200 Index (ASX: XJO) is up over 10% during the same period.

Why has the a2 Milk share price been underperforming?

There are a couple of reasons for its underperformance during the last two months.

The first is the outperformance of the a2 Milk share price in the months before it reached its all-time high. This is evident in its year to date gain of approximately 26% compared to a 10.5% decline by the ASX 200.

Investors were scrambling to buy the company’s shares during the first few months of 2020 due to speculation that its sales in China were on fire because of panic buying. This proved to be the case in April when a2 Milk Company released a trading update and upgraded its guidance.

However, with this already priced into its shares, the buy side soon ran out of steam and its shares began to slide.

What else is weighing on its shares?

In addition to this, recent data out of China isn’t overly positive for a2 Milk Company.

According to Goldman Sachs’ latest China Consumer Connections, the company’s online sales underwhelmed during the month of May.

After months of explosive sales growth, the broker estimates that a2 Milk Company’s sales on Chinese ecommerce platforms fell 1% in May compared to the same period last year.

In light of this, it believes its online market share in China has fallen from upwards of 9% in March to 6% in May.

This appears to have been driven by market share gains by local infant formula companies. This is particularly the case with Feihe International’s Firmus infant formula, which has been winning market share at a rapid rate.

Should you be concerned?

I think it is a bit early to be concerned by its recent online market share losses. Especially as it has a tendency to be reasonably volatile. But it will be worth keeping an eye on things to see if there are any negative trends forming.

For now, though, I continue to see a2 Milk Company as a share to buy.

More reading

• How the A2 Milk and Bubs share prices have performed during the pandemic
• 2 ASX shares I’d buy if the ASX crashes again
• 3 top ASX shares to buy now to get rich later
• 3 companies with great intangible asset moats
• Will ASX 200 shares hit a record high in June?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. 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.

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