These ETFs could give your portfolio some diversification…
The post Diversify your portfolio with these quality ETFs appeared first on The Motley Fool Australia. –
If you’re wanting to add some diversification to your portfolio this month, then you might want to look at exchange traded funds (ETFs). These funds 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 iShares Global Consumer Staples ETF. This fund aims to provide investors with the performance of the S&P Global 1200 Consumer Staples Sector Index before fees and expenses.
This index is designed to measure the performance of global consumer staples 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 low 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 12.1% per annum.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
The VanEck Vectors Morningstar Wide Moat ETF gives investors access to a diversified portfolio of 49 attractively priced US companies with sustainable competitive advantages or “moats”.
Moats are something Warren Buffett looks for when he’s picking shares to invest in. And given his long term investment success, it certainly could be worth following his lead.
At present there are a total of 49 shares included in the fund. These includes well-known companies such as Amazon, Bank of America, Berkshire Hathaway, Constellation Brands, Intel, McDonalds, and Microsoft.
Over the last 10 years, the index the ETF tracks has generated an average return of 20.2% per annum.
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James Mickleboro does not own any shares 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 VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.