From ASX to Wall Street: Why Aussie Investors Are Turning to US ETFs

You’ve bought your first ETF. Maybe even a few. Things are starting to click.

You’ve got exposure to the ASX, you understand the basics, and your money’s quietly getting to work in the background.

So what’s next?

For a lot of Australian share investors, the next step is looking beyond Australia. 

US ETFs are exchange-traded funds listed on US stock markets, and they give you access to a much bigger range of investments, from broad market exposure to specific sectors and some of the world’s largest growth companies. Often with lower fees and deeper liquidity than local alternatives. 

That matters if you want more choice, better diversification beyond the Australian market, and a simple way to invest in overseas markets. 

In this guide, we’ll compare US ETFs with ASX ETFs, show you how to invest in US ETFs from Australia through platforms like Superhero, and run through popular US ETFs, costs, tax considerations, and a few practical considerations before you buy.

Why Australian Investors Consider US ETFs Over ASX Listings

1. Thinking beyond the ASX

Australia’s ETF market has come a long way. You can cover a lot of ground with a few familiar names.

Australia’s very first ETF, STW gives you broad exposure to Aussie shares. VGS opens the door to international markets. NDQ leans into US tech. These ETFs are only some of the examples but are some of the most commonly known.

That’s a solid setup.

But compared to the US, our market is still relatively small. And that matters, because it shapes what you can actually invest in.

The US is where ETFs began. The first ETF, the SPDR S&P 500 ETF (SPY), launched in the early 90s. Since then, the market has grown to thousands of ETFs and trillions of dollars in assets. Australia, by comparison, has a few hundred.

That gap isn’t just scale for the sake of it. It directly affects the level of choice, cost, and flexibility available to investors.

2. More choice, more ways to invest

On the ASX, most ETFs are fairly broad. They’re designed to give you wide exposure in a simple way.

In the US, you still get those broad options. You can invest in the S&P 500 through ETFs like SPY, VOO or IVV. You can track the Nasdaq-100 with QQQ. Or go even wider with something like VTI, which covers the total US market. ETFs can also be actively managed decisions rather than simply following a set benchmark, and some active etfs use higher-risk trading techniques in an attempt to outperform.

But then things start to get more specific. In fact, 37 ETFs track 16 alternative USA indices. Global indices are also tracked by 48 ETFs, with costs ranging from 0.05% to 0.51%.

Want to focus on semiconductors? There’s an ETF for that. Cybersecurity? Covered. Clean energy, biotech, even niche themes you might not have thought about yet. 

This is where US ETFs really stand out. There are often dozens of ETFs each targeting a different slice of that same sector. You’re not limited to “the market” or “tech”. You can zoom in on the parts of the market you actually believe in. 

That has real portfolio implications. More choice gives you more control:

• You can avoid exposures you don’t want
• Tilt toward areas you have higher conviction in
• Build a portfolio that better reflects your view of the market

Of course, it also means you need to be more selective. More options aren’t helpful if you don’t understand what you’re buying.

3. Costs, Expense ratio and Efficiency

One of the big advantages of ETFs is cost. And in the US, scale really works in your favour.

Some of the most widely used ETFs, like VOO and IVV, have expense ratios around 0.03%. That’s meaningfully lower than many comparable broad or thematic exposures elsewhere, which often sit closer to 0.10%–0.40%. The largest ETF options tracking major benchmarks often pair very low costs with strong liquidity. 

It might not seem like a big difference, but over time, lower fees mean more of your return stays in your pocket. That doesn’t mean every US ETF is cheap, especially more niche or thematic ones. But for broad market exposure, costs are often among the lowest you’ll find.

Just keep in mind there are other costs too, like converting from AUD to USD.

4. Liquidity: the quiet advantage

Liquidity might not be front of mind, but it plays a role in how smoothly you can trade.

Large US ETFs like QQQ, VOO and VTI are heavily traded.  That usually means tighter spreads and more consistent pricing reflected through its NAV.

An ETF’s NAV is calculated by subtracting liabilities from assets, which helps show the underlying value. In simple terms, the trading price should stay very close to its NAV, so the price you see is often very close to the price you get.

It’s not something you’ll notice every day, but over time it can make a difference.

5. Tapping into global growth and emerging markets

Many of the world’s largest and most influential companies are based in the US.

When you invest in ETFs like VOO or QQQ, you’re getting exposure to businesses like Apple, Microsoft, NVIDIA, Amazon and Alphabet. Companies that are driving global trends across technology, healthcare and consumer markets.

You can access some of this through ASX-listed ETFs. But US-listed ETFs often give you more choice, lower costs and greater liquidity.

It’s one of the reasons investors look to the US when they want to grow beyond their home market.

6. Balancing out home bias

Most Australian portfolios lean heavily towards local shares. And that usually means a lot of banks and mining companies.

That’s not necessarily a problem, but it does mean your portfolio is closely tied to the Australian economy.

Adding US ETFs can help balance that out.

Pairing something like VAS with a US ETF such as VTI or VOO introduces:

• Exposure to sectors underrepresented in Australia (like technology and healthcare)
• A broader set of global companies
• Different economic drivers

It’s not about replacing what you already have. It’s about rounding things out.

Investing in US ETFs from Australia

Getting started is simpler than it used to be

Not that long ago, investing internationally felt like a big step.

These days, it’s much more straightforward.

Buying a US ETF is similar to buying one on the ASX. The main differences are currency and market hours.

Once you’re comfortable with those, it becomes just another part of your investing toolkit.

Getting Started with US ETFs: A Few Things to Keep in Mind

US ETFs come with plenty of benefits, but there are a few extra moving parts.

Currency can move up and down, which affects your returns. There are also tax differences, including US withholding tax on dividends (typically handled via a W-8BEN form). And because US markets trade overnight, timing can feel a bit different.

Then there’s choice. With so many ETFs available, not all of them are built the same. It’s worth taking a moment to understand what you’re investing in. Most US ETFs use an in-kind creation and redemption process, which can help minimise taxable capital gains. Some exchange traded funds, such as leveraged ETFs, can target returns from −1x to 3x an index and carry higher risk.

Final thoughts

If you’re already investing in ASX ETFs, exploring US-listed ETFs is a natural next step.

You’re stepping into a market that offers:

• Far greater breadth and flexibility
• More precise ways to express investment views
• Lower costs on many core exposures
• Deep liquidity and efficient trading

You don’t need to overhaul your portfolio.

A simple starting point could be adding a broad US ETF like VOO or VTI alongside existing holdings like VAS or VGS. From there, you can build out over time as your confidence grows.

It’s a straightforward way to move from a local portfolio to a more global one, without changing the way you invest, just expanding where you invest.

Frequently Asked Questions

How can I buy US ETFs from Australia?

Australian investors can buy US ETFs through a brokerage platform like Superhero, which offers direct access to US-listed ETFs such as VOO, VTI, QQQ and SPY. Superhero charges US$2 brokerage on US share and ETF trades up to US$20,000, with instant FX transfers to your USD wallet at a 50 bps FX rate. You can also buy fractional shares, which makes it easy to start with any amount.

What are some popular US ETFs for Australian beginners?

A common starting point for beginners is a broad market US ETF. VOO and IVV track the S&P 500, giving exposure to the 500 largest US companies, while VTI covers the full US market including mid and small caps. QQQ is another popular option for investors who want more concentrated exposure to US technology and growth companies. All four are highly liquid, low-cost and among the most widely held ETFs globally. Choosing between them depends on your goals, time horizon and risk tolerance.

What’s the difference between VOO, VTI and QQQ?

VOO tracks the S&P 500, which is made up of the 500 largest US companies and is heavily weighted toward tech and consumer names. VTI tracks the total US stock market, including mid and small-cap companies, so it offers broader exposure than VOO. QQQ tracks the Nasdaq-100, which is dominated by US tech and growth companies like Apple, Microsoft, Nvidia and Alphabet. VOO and VTI suit investors who want broad US market exposure, while QQQ is more concentrated and typically more volatile.

Are US ETFs cheaper than ASX ETFs?

Generally, yes. Core US-listed ETFs like VOO and IVV have expense ratios around 0.03%, while comparable ASX-listed ETFs typically sit around 0.07% to 0.10%. The difference looks small, but over long time horizons it can add up to thousands of dollars in additional returns through compounding. Thematic US ETFs can cost more, so it’s worth checking the expense ratio before you buy.

Do I need to pay tax on US ETFs as an Australian investor?

Yes. Dividends from US ETFs are generally subject to a 15% US withholding tax under the Australia to US tax treaty, provided you’ve completed a W-8BEN. Superhero handles the W-8BEN process digitally as part of account setup. You’ll also need to declare any income and capital gains to the ATO, and tax treatment can vary depending on your circumstances, so it’s worth speaking to a qualified tax adviser.