These ETFs could give your portfolio some diversification…
The post ASX investors could diversify their portfolios with these quality ETFs appeared first on The Motley Fool Australia. –
If you wish to add some diversification to your portfolio in August, then you might want to look at exchange traded funds (ETFs).
ETFs can help investors achieve diversification with relative ease by providing access to a large and diverse number of different shares through a single investment.
With that in mind, listed below are two ETFs which could be worth considering. Here’s what you need to know about them:
iShares Global Consumer Staples ETF (ASX: IXI)
The first ETF to look at is BlackRock’s iShares Global Consumer Staples ETF. This fund gives investors exposure to many of the world’s largest global consumer staples companies. These are companies that produce essential products, including food, tobacco, and household items.
Given how demand for these types of products is relatively consistent whatever the economy throws at them, this ETF is likely to be suitable for investors that are looking for lower risk options.
Among its largest holdings are the likes of Coca-Cola, Nestle, PepsiCo, Procter & Gamble, Unilever, and Walmart.
Over the last 10 years, the iShares Global Consumer Staples ETF has generated an average total return of 13.4% per annum. This would have turned a $10,000 investment in 2011 into ~$35,000.
iShares S&P 500 ETF (ASX: IVV)
Another ETF to look at is the iShares S&P 500 ETF, which is also managed by global giant BlackRock.
The fund manager notes that this ETF gives investors exposure to the top 500 U.S. stocks through a single investment. 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 19.9% per annum. This would have turned a $10,000 investment in 2011 into just over $61,000 today.
The post ASX investors could diversify their portfolios with these quality ETFs appeared first on The Motley Fool Australia.
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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 owns shares of and has recommended iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended 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.