VGS vs IVV: Which ASX ETF Should You Actually Pick?

So you want international exposure but can't decide between VGS and IVV. The core difference is simple: VGS gives you the whole developed world, while IVV puts all your eggs in the US basket. VGS tracks the MSCI World ex-Australia index, meaning you're getting Japan, Europe, Canada, and everywhere else in one fund. IVV? Pure S&P 500. That's it.

The fee question matters more than people think. VGS charges 0.14% annually while IVV sits at 0.03%, which sounds tiny until you realize you're paying for that diversification with VGS. Over 20 years, those basis points add up. But here's the thing: would you rather pay slightly more to spread risk across multiple economies, or save a few basis points by betting everything on American growth?

Your answer depends on your conviction about US markets and how much sleep you lose at night worrying about concentration risk. If you think the US will outperform for the next decade, IVV wins. If you want to own the world and don't mind paying for it, VGS is your move. Neither choice is wrong—they're just different bets on where growth lives.