Here are a couple of ETFs you need to know about…
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Exchange traded funds (ETFs) can be a fantastic way to balance out your portfolio. This is because ETFs provide investors with easy access to a large and diverse group of shares that you wouldn’t normally have access to.
With that in mind, I have picked out two ETFs that are popular with investors right now. Here’s what you need to know about them:
iShares S&P 500 ETF (ASX: IVV)
The first ETF for investors to look at is the iShares S&P 500 ETF. It aims to provide investors with the performance of the famous S&P 500 Index, before fees and expenses. This index has been designed to measure the performance of large capitalisation US equities.
BlackRock, which runs the ETF, notes that it gives investors exposure to the top 500 U.S. stocks through a single investment. It feels this can be used to diversify internationally and seek long-term growth opportunities for a portfolio. Among the ETF’s largest holdings are Amazon, Apple, Berkshire Hathaway, Facebook, JP Morgan, Johnson & Johnson, Microsoft, and Tesla.
Over the last 10 years, the fund has generated an average return of 17.9% per annum.
VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)
Another ETF to look at is the VanEck Vectors Video Gaming and eSports ETF. It gives investors exposure to a portfolio of companies involved in video game development, hardware, and esports.
VanEck notes that there are 2.7 billion active gamers in the world, which is more than Netflix subscriptions and active Apple devices. Furthermore, the gaming industry is disrupting traditional sports and media and is experiencing a period of transformative growth.
Among the companies included in the fund are giants such as graphics processing unit developer Nvidia and game developers Activision Blizzard, Take-Two and Electronic Arts. Take-Two is the company behind the Grand Theft Auto and Red Dead franchises. Whereas Electronic Arts is the company that makes the FIFA and Madden NFL series and Activision Blizzard is behind the Call of Duty series.
The index the fund tracks has generated a return of 33.6% per annum over the last five years.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and iShares Trust – iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.