What are the best ETFs to pair together?

Choosing an ETF pairing

ETFs provide convenient and low cost access to a diversified portfolio of stocks.

By pairing ETFs, investors can gain exposure to Australian and international stocks, growth and value stocks and exposure to faster-growing sectors like tech and higher-yielding industries like financial services.

ETF Pair 1: $IVV + $VAS

Suited to investors who want exposure to large, established U.S. and Australian companies.

iShares S&P 500 ETF ($IVV)

$IVV tracks the top 500 U.S. companies, including Apple, Microsoft, and Amazon.

Vanguard Australian Shares Index ETF ($VAS)

$VAS provides exposure to the top 300 Australian companies listed on the ASX.

🆚 Compare the ETFs performance: IVV and VAS→

What are the pros of the IVV and VAS pair?

• Diversifies across U.S. and Australian stocks 
• Reliable large-cap exposure in both markets
• Low-cost, broad-based index funds
• Great for long-term, set-and-forget investors

What are the cons of the IVV and VAS pair?

• Sector overlap (e.g., financials)
• U.S. currency exposure
• Limited exposure to emerging markets

ETF Pair 2: $VAS + $VGS

Suited to investors who want exposure to the Australian market and developed markets around the world.

Vanguard Australian Shares Index ETF ($VAS)

$VAS provides broad exposure to Australia’s top publicly traded companies.

Vanguard MSCI International Shares ETF ($VGS)

$VGS provides access to large and mid-cap companies from developed markets outside Australia.

🆚 Compare the ETFs performance: VAS and VGS→

What are the pros of the VAS and VGS pair?

• No overlap between $VAS and $VGS
• Balanced home and global diversification
• Low-fee, index-tracking funds
• Ideal for a two-fund core portfolio

What are the cons of the VAS and VGS pair?

• No emerging markets exposure
• May underweight U.S. tech relative to NASDAQ-focused ETFs
• Lacks exposure to small-cap stocks.

ETF Pair 3: $VTS + $IOO

Suited to investors who want exposure to the whole U.S. share market and the largest global stocks.

Vanguard U.S. Total Market Shares ETF ($VTS)

$VTS offers exposure to the entire U.S. equity market, from small-caps to giants.

iShares Global 100 ETF ($IOO) 

$IOO tracks the 100 largest global companies by market capitalisation.

🆚 Compare the ETFs performance: VTS and IOO→

What are the pros of the VTS and IOO pair:

• Broad U.S. market exposure via $VTS
• Global blue-chip names included via $IOO
• Strong growth focus with company quality

What are the cons of the VTS and IOO pair:

• Overlap between $VTS and $IOO top holdings
• No Australian exposure
• Currency risk (both USD-denominated)

ETF Pair 4: $A200 + $NDQ

Suited to investors who want exposure to the top Australian companies and world-leading tech companies.

Betashares Australia 200 ETF ($A200) 

$A200 tracks the performance of the 200 largest companies on the ASX.

Betashares NASDAQ 100 ETF ($NDQ) 

$NDQ provides access to 100 of the largest non-financial NASDAQ-listed companies.

🆚 Compare the ETFs performance: A200 and NDQ→

What are the pros of the A200 and NDQ pair:

• Combining domestic income with tech growth
• $A200 is ultra-low cost (expense ratio of just 0.04%)
• Exposure via $NDQ to higher earnings growth
• Simple diversification across sectors

What are the cons of the A200 and NDQ pair:

• High sector concentration in tech
• Higher volatility in $NDQ
• No emerging markets or broader global exposure

ETF Pair 5: $VEU + $NDQ

Suited to investors who want exposure to the global developed and emerging markets with a tight focus on U.S. tech and growth stocks listed on the NASDAQ.

Vanguard All-World ex-U.S. Shares ETF ($VEU)

$VEU provides access to developed and emerging markets outside the United States.

Betashares NASDAQ 100 ETF ($NDQ)

$NDQ provides access to top-performing U.S. tech and growth companies.

🆚 Compare the ETFs performance: VEU and NDQ→

What are the pros of this pair:

• Global reach, including emerging markets
• Strong tech exposure with $NDQ
• Complement each other with minimal overlap
• Offers a more global, U.S.-plus strategy

What are the cons of this pair:

• No Australian market exposure
• Both ETFs are USD-denominated
• Tech sector volatility from $NDQ

Considerations to remember for your ETF pair portfolio

Investors should regularly review their portfolios and make sure they align with their goals

Consider a core-satellite strategy: your ETF pair can be your core, with smaller tactical positions as satellites. Explore all-in-one diversified ETFs (that offer a global mix of shares or a combination of asset classes) for a simplified approach.

Consider expanding to 3 or 4 ETFs if you're comfortable with including emerging markets, fixed income, or sector-specific plays.

Stay consistent with your investment plan, but stay flexible as markets evolve.

💡Related: Explore the best-performing ETFs in Australia

What should I do if I want to change one of the ETFs in the pair?

Selling an existing ETF may be useful if you want to reduce complexity or overlap, and consolidate into fewer holdings.

Is your objective to simplify holdings or to add diversification? 

Remember, selling an existing ETF may trigger a capital gains tax liability if its share price has gone up from when you bought it.

Maintaining a position in a currently held ETF may avoid tax implications, however it may lead to an overlap in stocks held within the underlying portfolio of each ETF. 

The key issue to consider is which ETF aligns best with your financial goals.

Disclaimer

The information contained above does not constitute financial product advice nor a recommendation to invest in any of the securities listed. Past performance is not a reliable indicator of future performance. When you invest, your capital is at risk. You should consider your own investment objectives, financial situation and particular needs. The value of your investments can go down as well as up and you may receive back less than your original investment. As always, do your own research and consider seeking appropriate financial advice before investing.

Any advice provided by Stake is of general nature only and does not take into account your specific circumstances. Trading and volume data from the Stake investing platform is for reference purposes only, the investment choices of others may not be appropriate for your needs and is not a reliable indicator of performance.

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