Who else wants to diversify their portfolio?

I’m always on the lookout for ways to diversify my portfolio whilst maintaining strong returns. If you can mitigate risk whilst also beating the market then that’s a powerful combination.

Diversification usually means investing into different industries and perhaps businesses that offer geographical diversification away from Australia.

Here are three shares that I think would offer good diversification:

BetaShares Global Agriculture ETF (ASX: FOOD)

This exchange-traded fund (ETF) is offered by ETF specialist BetaShares. Food is an essential part of our lives, so you could say it’s defensive in some regards.

The ETF gives investors exposure to some of the world’s biggest food businesses like Archer Daniels Midland, Deere & Co, Kubota Corp and Tyson Foods.

The importance of food companies is only going to increase as the global population. Some experts believe there will be a good shortage by 2030. If that’s true then this ETF could be one of the best ways to profit from that idea.

National Veterinary Care Ltd (ASX: NVL)

This veterinary clinic business has seen its share price fall by over 30% since its all-time high at the start of the year due to difficult conditions in the vet industry.

However, I think this presents a compelling long-term opportunity to buy shares at a discounted price. We all still own pets – the number of pets hasn’t decreased by 30%. Pet owners still regularly take their pet to the vet, a majority of pets go at least once a year.

National Vet Care has acquired a lot of new clinics over the past year. It needs to integrate them. I think the amount of annualised profit that will be realised in the FY19 result will encourage investors with this pet company again.

Magellan Global Trust (ASX: MGG)

This is a listed investment trust (LIT) run by Magellan Financial Group Ltd (ASX: MFG). It aims to give Aussie investors exposure to some of the world’s highest-quality businesses like Facebook, Alphabet (Google), Visa, Mastercard and Wells Fargo.

Since inception in October 2017 it has outperformed its benchmark by 0.6%, after all fees, whilst keeping a good amount of cash on hand for downside protection. At June 2018, 21% of its portfolio was cash.

I think this is one of the better ways for investors to get exposure to high quality international shares without having to do any research themselves.

Foolish takeaway

At the current prices I’m drawn to National Vet Care’s beaten-down share price. Although 2018 has been disappointing for the pet company you just need to think about where the business will be in five or ten years’ time. In that context, I think it’s easier to imagine how much more valuable the National Vet Care will be.

Another share that would be great for diversification is this top ASX share in the auto industry.

Breaking news: ASX companies set to raise dividends!

It's been a nail-biter of a reporting season here in the first half of 2018.

But the real action, in my opinion, is what companies are doing with dividends.

What does this mean for you? Well there is one stock I've found that could very well turn out to be THE best buy of 2018. And while there's no such thing as a 'sure thing' when it comes to investing - this ripper might come as close as I've ever seen.

Click here it's FREE!

Motley Fool contributor Tristan Harrison owns shares of MAGLOBTRST UNITS and NATVETCARE FPO. The Motley Fool Australia owns shares of NATVETCARE FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!