Although ASX shares have come off the boil over 2024 so far, no one can deny it's been a great month for investors. Since this time last month, the S&P/ASX 200 Index (ASX: XJO) has gained a rosy 4.15%. But let's talk about some ASX exchange-traded funds (ETFs) that have been doing even better.
Today, the ASX has seen not one, not two, but three ETFs hit all-time record highs.
Let's discuss.
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3 ASX ETFs that just hit new record highs
First up is the Vanguard U.S. Total Markets ETF (ASX: VTS). VTS units clocked a new record high of $353.45 a unit this morning before falling back down to the $352.13 price we currently see. This fund is now up 25.9% over the past 12 months.
Next, we have the Vanguard MSCI Index International Shares ETF (ASX: VGS). VGS units surged to a new all-time high of $111.68 this morning as well. The ETF has also come off the boil since, though and is asking $111.29 at the time of writing. That puts the Vanguard International Shares ETF up 21.9% over the past year.
Finally, the VanEck MSCI International Quality ETF (ASX: QUAL) is worth a look. This ASX ETF is the third one to smash a new all-time record high this Wednesday. This morning saw QUAL units rise as high as $47.79 each before falling back to the current level of $47.65. That puts this ASX ETF up 32.1% since early January 2023.
What can we learn from these new highs?
Although these ASX ETFs look and sound very different to one another, there's a good reason all three have hit new record highs on the same day. It's because these funds are all very similar in nature.
All three have huge allocations to the US share market, and all three count very similar stocks amongst their top holdings.
The Vanguard U.S. Total Markets ETF… well, the name says it all. This fund tracks thousands of shares listed on the American markets. But the big names like Apple, Microsoft, Alphabet, NVIDIA and Amazon dominate its top holdings.
The Vanguard International Shares ETF may not sound like a US-focused fund. However, more than 70% of its holdings are US companies. And it counts those big US tech stocks as its top holdings as well.
Ditto with the VanEck International Quality ETF. Unlike the other two ASX ETFs here, this is not a passive index fund. Instead, the QUAL portfolio is built using "the world's highest quality companies based on key fundamentals including… high return on equity… earnings stability and… low financial leverage".
However, 74% of its portfolio calls the United States home. And it's those same US tech shares (Apple, Microsoft and Nvidia) that carve out the largest positions in this fund's portfolio.
Over the past few days and weeks (and indeed months and years), these companies have continued to delight investors with huge gains. Apple stock remains up more than 40% over the past 12 months. Alphabet shares are up almost 60%, while Nvidia has shot the moon with its whopping rise of 234%.
So considering these kinds of gains, it's not a big surprise to see these similar ASX ETFs hit new record highs at virtually the same time this Wednesday. Congratulations to all investors of these three exchange-traded funds.
