I’m always thinking about what ASX shares I want to buy next and which ones I’d like more exposure to.
It can be hard to increase your exposure to certain investments if you aren’t presented with the right buying price. This describes the current situation with two ASX shares I want to more of for my portfolio.
I believe I need to increase exposure to overseas listed businesses, but only at the right price. Currency movements also make the thought process a little more complicated. It might be best to ignore currency fluctuations.
Here are two of the ASX shares I want to buy more of for my portfolio:
MFF Capital Investments Ltd (ASX: MFF)
MFF Capital is a listed investment company (LIC) that’s more than a decade old. It has been one of the best performers with its focus on international shares, particularly in the US.
Indeed, around 31% its portfolio is allocated to just Visa and MasterCard which are great businesses and benefiting from the shift to card payments (over cash) and more online shopping.
Some of MFF Capital’s other large positions include Home Depot, Bank of America, JPMorgan Chase, Alphabet and Lowe’s.
The co-founder of Magellan Financial Group Ltd (ASX: MFF), Chris Mackay, is portfolio manager and has an enormous amount of his family’s wife invested in the LIC. So, he’s very aligned with regular shareholders.
This LIC has a low, fixed management fee which makes MFF Capital very scalable.
Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE)
This exchange-traded fund (ETF) gives investors a relatively cheap way to invest in Asian businesses in countries which have growing economies and rapidly-rising middle classes like in China and India.
Businesses like Alibaba, Tencent, Samsung and so on are titans in their own markets and are valued cheaper than their western counterparts.
Whilst I wouldn’t want to put a large part of my portfolio into this ETF because Asia certainly has its own problems (just look at Hong Kong), I think it would be a mistake to avoid Asian growth entirely. So I’m happy to get indirect exposure through this ETF which invests in hundreds of Asian companies for a management fee of 0.40% per year.
Both of these potential investments give us exposure to investments that are very different to the ASX. I’d prefer to buy MFF Capital because of its excellent record, high-quality management and long-term focus. But, I want to make sure that at least a small portion of my portfolio is invested in Asia.
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Motley Fool contributor Tristan Harrison owns shares of Magellan Flagship Fund Ltd and VANGUARD FTSE ASIA EX JAPAN SHARES INDEX ETF. The Motley Fool Australia has no position in any of the stocks mentioned. 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.