Here’s why iShares S&P 500 ETF (ASX:IVV) and this ETF could be excellent options for ASX investors in June…
The post 2 excellent ETFs for ASX investors in June appeared first on The Motley Fool Australia. –
If you’re wanting to add some diversification to your portfolio, then you might want to look at exchange traded funds (ETFs). This is because ETFs give investors easy access to a large and diverse number of different shares through just a single investment.
With that in mind, listed below are two ETFs which are popular with investors. Here’s what you need to know about them:
iShares S&P 500 ETF (ASX: IVV)
The first ETF to look at is the iShares S&P 500 ETF managed by global giant BlackRock. It aims to provide investors with the performance of the illustrious S&P 500 Index, before fees and expenses. This index has been designed to measure the performance of large capitalisation US equities.
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 18.1% per annum.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
Another ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. This fund gives investors exposure to a diversified portfolio of 49 attractively priced US companies with sustainable competitive advantages.
Historically, companies with moats have generated strong returns for investors. This is why Warren Buffett is such a big fan of investing in companies with this characteristic.
Among the ETF’s holdings are the likes of Amazon, American Express, Boeing, Coca-Cola, Microsoft, Pfizer, and Yum! Brands.
Over the last 10 years, the index it tracks has outperformed the ASX 200 index by some distance. During this time, it has generated an average total return of 20.2% per annum.
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