Top ASX ETFs for Global Portfolio Diversification in FY 2026

The article recommends two ASX ETFs for international diversification: iShares S&P 500 ETF (IVV) and Vanguard MSCI Index International Shares ETF (VGS). Both ETFs offer exposure to developed markets around the world, with IVV focusing on the US market and VGS covering a broader range of countries. Investors can access well-known names like Apple, Johnson & Johnson, Nestle, and Toyota through these ETFs, which are designed to be easy and low-cost options for gaining international exposure.

Title: Top ASX ETFs for International Diversification in FY 2026

As Australian investors seek to diversify their portfolios, turning to exchange-traded funds (ETFs) can be an effective strategy. With the start of FY 2026, two standout ASX ETFs offer compelling opportunities for international exposure: iShares S&P 500 ETF (IVV) and Vanguard MSCI Index International Shares ETF (VGS).

# iShares S&P 500 ETF (IVV)

The iShares S&P 500 ETF (ASX: IVV) provides broad exposure to the United States market. This ETF tracks the S&P 500 Index, which includes the 500 largest companies in the U.S. [1] Investors gain access to a diversified mix of sectors, including technology, healthcare, consumer goods, and financials. Notable holdings include tech giants such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA), as well as global leaders like Johnson & Johnson (NYSE: JNJ), Procter & Gamble (NYSE: PG), Costco (NASDAQ: COST), Starbucks (NASDAQ: SBUX), and JPMorgan Chase (NYSE: JPM). Given the U.S. economy's resilience and the innovation power of its corporate sector, this ETF could serve as a foundational building block for internationally diversified portfolios.

# Vanguard MSCI Index International Shares ETF (VGS)

The Vanguard MSCI Index International Shares ETF (ASX: VGS) broadens the net to developed markets around the world. This ETF tracks the MSCI World ex-Australia Index and provides access to over 1,200 large and mid-cap companies across the United States, Europe, Japan, Canada, and beyond. Major holdings include well-known names such as Nestle (SWX: NESN), Roche (SWX: ROG), Toyota (TYO: 7203), and LVMH (FRA: MOH). This gives investors exposure to businesses that are leaders in their respective regions and industries. With global economic growth expected to pick up in the years ahead, the Vanguard MSCI Index International Shares ETF offers a simple, all-in-one option for those seeking true international diversification.

# Conclusion

Both iShares S&P 500 ETF and Vanguard MSCI Index International Shares ETF offer low-cost, easy access to international markets, making them excellent choices for Australian investors looking to diversify their portfolios. By investing in these ETFs, investors can gain exposure to a broad range of well-known international companies without the need for extensive market knowledge or an international brokerage account.

References
[1] https://www.fool.com.au/2025/07/14/the-best-asx-etfs-to-buy-for-international-diversification-in-fy-2026/
[2] https://www.fool.com.au/2025/07/09/5-asx-etfs-to-buy-with-10000-today/