Own the Vanguard International Shares ETF (VGS)? This rival ASX ETF is half the price

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How much is the Vanguard name worth? The post Own the Vanguard International Shares ETF (VGS)? This rival ASX ETF is half the price appeared first on The Motley Fool Australia.

If you're a fan or investor in ASX exchange-traded funds (ETFs), chances are you are either invested in the Vanguard MSCI International Shares Index ETF (ASX: VGS), or are at least well familiar with it. This ASX index fund is one of the most popular of its kind on the Australian share market.

In fact, with more than $19 billion in funds under management, it is currently the second most popular ETF product on our market, only behind its domestic-focused stablemate, the Vanguard Australian Shares Index ETF (ASX: VAS).

So there are more than a few Australians who have entrusted their wealth to this ASX ETF. That's understandable. After all, Vanguard is a name without peer in the passive investing space. And VGS offers incredible diversification, scope, and scale, all in one easy ETF. If you aren't familiar, the Vanguard International Shares ETF offers ASX investors access to a massive portfolio of global shares. VGS' portfolio is made up of more than 1,200 individual stocks. These are drawn from advanced economies all over the world, including Canada, Japan, the United Kingdom, France, Spain, Singapore, Hong Kong, Finland, and Israel.

This means that the largest US stocks, such as Apple, NVIDIA, Amazon, Alphabet, and the rest of the Magnificent 7, are the largest holdings in this ETF. Despite more than 1,200 holdings, NVIDIA and Apple together take up more than 11% of the entire VGS portfolio. Indeed, the top ten holdings together account for almost a third of the entire VGS portfolio. As such, this fund isn't as diverse as one might initially expect.

But let's talk fees. Vanguard is known, and well-regarded, for its not-for-profit structure. This enables the provider to offer some of the lowest ETF fees on the market across its various products. VGS is no different, charging investors 0.18% per annum. That's $18 a year for every $10,000 invested.

That kind of fee may seem minuscule. It is certainly competitive by international ETF standards.

Arguably, VGS' biggest threat…

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