Morgans suggests although Australian investors have typically favoured stocks listed on the local exchange, most of the world’s great brands are based overseas.

And some of those stocks are now trading at a discount of 15-25 per cent compared to their recent highs, offering long-term value.

Morgans Equity Strategist Tom Sartor says by looking offshore, investors can tap into consumer and technology leaders, like Amazon, Microsoft, and Visa.

Sartor also lists Apple, Google and Mastercard as dominant global brands.

“COVID-19 will have an impact on these businesses, but it doesn’t alter their long-term appeal,” Sartor says. “In fact, the pandemic may actually accelerate the pace of technological change required for businesses to remain competitive, and these brands are already at the leading edge.”

Sartor says these global leaders typically have no material net debt, and some are sitting on huge cash balances ($60 – $100 billion for Google and Microsoft).

“Companies like these will be impacted in any future economic downturn, but their financial strength puts them in a unique position,” Sartor says. “In tough economic times, smaller competitors often lack the capital to compete, whereas the leaders can use their surplus cash to become even stronger.”

Sartor says other market-leading stocks include Warren Buffett’s Berkshire Hathaway, Alibaba, Tencent and PayPal.

He suggests the global leaders offer exposure to business models not available from stocks listed on the Australian Securities Exchange, which is top-heavy with banks, mining stocks and bricks and mortar retailers.

“Most Australians already have a significant exposure to Australian shares through their superannuation,” he says.

“And while many investors would like to take advantage of opportunities overseas, buying shares listed on overseas exchanges can mean a lengthy process of establishing an account with an international broker, dealing with custodians and managing different currencies.”

But he says the introduction of a new product – TraCRs – has made it easier to invest in international shares.

TraCRs (short for Chi-X Transferable Custody Receipts) provide the ability to invest in major companies listed on the NASDAQ and New York Stock Exchange.

“By holding a TraCR, an investor gets the beneficial interest in a US share, which is ultimately held by a US custodian bank,” Sartor says.

“This gives investors exposure to the financial performance of that share, including the right to receive dividends in Australian dollars, and exercise voting rights.”

He says TraCRs are likely to appeal to investors already familiar with transacting on the ASX.

“TraCRs are bought and sold through a broker in Australian dollars, during Australian trading hours, which can be more cost-effective than investing directly in shares in the US,” Sartor says.

“Clearing and settlement takes place in the Clearing House Electronic Subregister System (CHESS), and investors can see their holdings alongside their Australian-listed shares.”

“Overall, it’s never been easier to invest in international shares via the ASX.”

For more information on investing into international shares contact Morgans today.