ASX-Listed ETFs vs US Shares: Buying US Stocks in Australia

For most Australian investors, getting exposure to the US has always been pretty straightforward. You buy an ASX‑listed ETF with a US allocation and you’re in. It’s local, familiar, and easy to manage.

And to be fair, it works. But it only captures part of what’s available.

Because behind the scenes, the global investment landscape has shifted. And more investors are starting to reflect that in how they build their portfolios, not by replacing what works but by expanding it.

Are you really getting full access to global growth?

The more useful question isn’t just: “Am I diversified?” It’s: “Am I capturing global growth, thematics and innovation, or just a fraction of it?”

For many Australian investors, the answer leans towards a fraction.

Australia makes up roughly 2% of global equity markets. Yet many local portfolios are still heavily weighted towards Australian shares.

That means a large portion of global growth, especially in fast‑evolving sectors, is sitting outside the typical portfolio.

The S&P/ASX 200, for example, is dominated by financials and materials, which together often make up around 50–60% of the index. Meanwhile, sectors driving global earnings growth like technology, healthcare, and consumer innovation, are underrepresented locally.

By comparison, the US market tells a different story. Technology alone accounts for over 25% of the S&P 500 and Healthcare around 10%.

So while ASX‑listed ETFs tracking US indices help close the gap, they’re still just one layer of access, not the full picture.

Why the US Market Is Bigger and Deeper

When you invest directly in US markets, you’re stepping into a larger  and more liquid equity market. The US accounts for more than 60% of global market capitalisation. It’s also home to over 4,000 ETFs, compared to a few hundred across Australian exchanges.

That scale flows through to trading.

Major US ETFs like those tracking the S&P 500 can trade billions of US dollars each day. ASX‑listed equivalents typically trade in the tens of millions of Australian dollars. In practical terms, that often means:

• tighter bid/ask spreads
• deeper liquidity
• more efficient execution

It’s not always obvious in a single trade, but over time, it adds up.

Lower Fees on US-Listed ETFs

Fees are one of the few investing costs you can control. And in the US, competition has pushed them down aggressively.

Core ETFs tracking broad markets often charge around 0.03% to 0.05% per year. Comparable ASX‑listed ETFs tend to sit closer to 0.07% to 0.10%+.

A difference of 0.05% might not feel like much. But over 20 years, on a $100,000 investment growing at 7% annually, that gap can mean thousands of dollars in additional returns, depending on compounding and tax.

It’s a small lever, but a powerful one.

Access to Thematic and Niche Sectors

Cost is one part of the story. Access is where things shift more meaningfully.

The US ETF market offers exposure to highly specific parts of the economy that are still hard to access locally. Think:

• AI infrastructure
• semiconductor supply chains
• cybersecurity
• defence and aerospace
• blockchain and digital assets

Many of these industries are not only growing, they’re shaping how the global economy evolves. Having the ability to invest directly in them gives you more control over how your portfolio is positioned.

With that added precision, though, comes added risk.

Many of these themes are concentrated in a handful of names, can be volatile and often function better as targeted overlays or satellite positions rather than core holdings.

Going Deeper with Individual US Stocks

For some investors, broad ETFs do the job. For others, there’s value in going deeper.

Instead of owning a slice of everything, they build targeted exposure through individual shares in a specific company. For example, investors may choose to buy individual shares in major US companies such as Apple or Amazon, or in theme-linked names like NVIDIA, Microsoft or AMD.

This approach can deliver stronger alignment with your investment views. But it also comes with trade‑offs. Individual stocks are typically more volatile and returns can vary significantly between companies, even within the same sector.

It’s where potential upside increases, but so does risk. You trade diversification for concentration, and later may need to sell those holdings as part of managing that exposure.

Currency and Tax Implications for Australian Investors

Investing in US markets introduces a few additional layers.

Currency exposure: The AUD/USD exchange rate becomes part of your return, and exchange-related costs can apply when moving from AUD to USD. Historically, the Australian dollar has traded anywhere between ~0.50 and above 1.00 USD over the past few decades.

That movement can either amplify or reduce returns when converting back to AUD. But it also adds diversification. Currency doesn’t always move in line with equity markets, which can help smooth overall portfolio outcomes.

Foreign exchange conversion fees are also often a key consideration for investors, with some platforms charging around 0.55% to 0.7%. On Superhero, currency conversion is streamlined through a transparent, flat fee structure, which charges US$0.50 per AU$100 transferred between AUD and USD wallets.

Tax considerations

US dividends are generally subject to a 15% withholding tax for Australian investors who complete the required documentation, so it’s worth understanding the tax implications of foreign income from another country when investing across borders. In some cases, this may be offset through Australian tax credits, but it does add an extra layer of tax and regulatory risk to consider. Profit when you sell US stocks is generally subject to Australian Capital Gains Tax (CGT)and other tax deductions as applicable.

The good news is that platforms have simplified much of this. Processes that were once manual like W‑8BEN forms are now handled digitally. Reporting is more consolidated. The overall experience of trading international shares is far more streamlined than it used to be.

How are market participants approaching this?

For many investors, it’s no longer about choosing one path. It’s about combining them.

Globally minded investors often look at asset allocation through different lenses.

Some investors utilize ASX-listed ETFs for broad market beta, while incorporating US-listed thematic vehicles or individual equities as targeted overlays to manage specific sector exposures

And where does that leave ASX ETFs?

Still firmly in the picture.

They remain a strong option for:

• simple portfolio construction
• straightforward tax reporting
• consistent, long‑term investing

For many investors, that ease is a real advantage, particularly when you’re building a core that supports, rather than replaces your global exposure.

The Shift Toward Global Investing

The direction is clear:

• The US continues to lead in market size and innovation.
• More niche and thematic exposures are emerging globally.
• Tools are making international investing easier and more accessible.

At the same time, Australian investors are becoming more globally minded.

Not because they have to. Because they can.

The Bottom Line: ASX and US Together

This isn’t about replacing what works. It’s about investors expanding their toolkit.

ASX‑listed ETFs offer simplicity, structure and familiar tax treatment.

US‑listed ETFs and shares offer scale, access and precision.  And they open the door to the full breadth of global growth, thematics, and innovation.

Blending the two may help you build a portfolio that better reflects where growth is happening globally, without losing sight of what matters most: keeping it manageable, cost‑aware and aligned with your own risk tolerance.

How to Buy US Stocks from Australia

Australian investors can buy US stocks from Australia through a regulated broker or trading platform, and Superhero makes it simple to access both ASX-listed and US-listed options in one place.

Direct US share trading with Superhero. Superhero lets investors open a trading account and buy US-listed shares and ETFs directly from Australia for just US$2 brokerage on 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 can make it easy to build positions. 

ASX-listed ETFs with US exposure. If you’d rather stay in AUD, Superhero offers ASX-listed ETFs like IVV, NDQ and VGS, giving you exposure to US markets without needing to convert currency as an alternative way to access international shares.

You might even blend both in one account. Superhero lets you hold ASX and US investments side by side, so you can build a portfolio that uses each for what it does best.

Frequently Asked Questions

Should Investors buy ASX-listed ETFs or invest directly in US shares?

The choice between buying shares this way or using direct stocks and etfs depends entirely on an investor’s specific strategy, cost considerations, and structural preferences. ASX-listed ETFs settle in AUD and offer simplified domestic tax reporting. Conversely, direct US shares and ETFs open access to global liquidity, narrower spreads, and specialized sectors.  Superhero lets you do both from the same account.

What’s the difference between NDQ and QQQ?

NDQ is an ASX-listed ETF that tracks the Nasdaq-100 Index and trades in AUD. QQQ is the US-listed exchange-traded fund tracking the same underlying index. NDQ offers simplified administration and domestic settlement, whereas QQQ provides lower structural fees and narrower trading spreads for those operating directly in USD. 

Are US-listed ETFs cheaper than ASX-listed ETFs?

Core US-listed ETFs tracking broad markets often charge around 0.03% to 0.05% per year, while comparable ASX-listed ETFs tend to sit closer to 0.07% to 0.10% or higher. The difference looks small, but over long investment horizons, it can add up to thousands of dollars in additional returns through compounding. Currency and foreign exchange risks may also affect pricing and performance.

How does currency affect my US stock returns?

When you invest in US shares or US-listed ETFs, the AUD/USD exchange rate becomes part of your return. If the Australian dollar weakens against the US dollar, your US investments are worth more when converted back to AUD, and vice versa. The Australian dollar has ranged from roughly US$0.50 to above US$1.00 over the past two decades, so currency can meaningfully amplify or reduce returns. It can also add diversification, since currency movements don’t always track equity markets.

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

Yes. Dividends from US shares 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, and you can also manage your retirement savings through Superhero Super, an APRA-regulated superannuation fund. You’ll still 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.