Whilst I’m positive on the prospects of the Australian share market in 2020, I believe it is always worth diversifying your portfolio with exposure to other markets just in case an unforeseen event occurs.
Investing overseas has become significantly easier in recent years thanks to the emergence of exchange traded funds (ETFs).
Through a single investment, ETFs can provide investors with exposure to a plethora of different industries, themes, and indices.
Three that I think would be good additions for 2020 are listed below:
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
One area of the world that I believe has strong long term growth potential is Asia. The BetaShares Asia Technology Tigers ETF gives investors exposure to some of the largest tech companies in this region. BetaShares describes these as “companies that are revolutionising the lives of billions of people in the Asian region.” This includes the likes of Alibaba, Baidu, and Tencent Holdings.
iShares S&P 500 ETF (ASX: IVV)
As its name implies, the iShares S&P 500 ETF gives investors exposure to Wall Street’s famous S&P 500 index. This index is home to many of the largest companies in the world such as Amazon, Apple, Starbucks, and Warren Buffett’s Berkshire Hathaway. If the US and China can avoid a full on trade war, I believe the S&P 500 index could provide more strong returns in 2020.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
The Vanguard MSCI Index International Shares ETF is probably as diverse as it gets. This ETF provides investors with exposure to many of the world’s largest companies listed in major developed countries. This allows investors to participate in the long-term growth potential of international economies outside Australia. Amongst its biggest holdings you will find the likes of Apple, Microsoft, Amazon, Nestle, and Visa.
These 3 stocks could be the next big movers in 2020
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In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
*Returns as of 6/8/2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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.
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