These ETFs could be worth considering…
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If you’re wishing to add some diversification to your portfolio this week, 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:
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
The first ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. It gives investors access to a diversified portfolio of 48 attractively priced US companies that are deemed to have sustainable competitive advantages or moats.
Warren Buffett is a fan of investing in companies with moats. And given his long term investment success, it certainly could be worth following his lead.
Among the 48 shares included in the fund are some of the most well-known companies in the world. This includes Alphabet (Google), Amazon, Coca-Cola, Constellation Brands, Intel, Kelloggs, McDonalds, Microsoft, Pfizer, Philip Morris.
Over the last 10 years, the index the ETF tracks has generated an average return of 22.6% per annum.
VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)
Another ETF by VanEck that could be worth considering is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors exposure to a portfolio of the largest companies involved in video game development, hardware, and esports.
Among the companies included in the fund are gaming giants Activision Blizzard, Electronic Arts, Roblox, and Take-Two.
In addition, graphics processing unit developer Nvidia is another key member of the fund. Nvidia sparked the growth of the PC gaming market in 1999, redefining modern computer graphics and revolutionising parallel computing. Since then, its GPU deep learning ignited modern artificial intelligence, which is the next era of computing.
VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports.
The index the VanEck Video Gaming and Esports ETF tracks has generated a return of 32.2% 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 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.