If you don't have enough funds at this point to build a truly diverse portfolio, then exchange traded funds (ETFs) could be just what you need.
Through just a single investment, ETFs provide investors with exposure to whole indices, industries, or even themes.
There are a large number of ETFs out there for investors to choose from, but three of my favourites are listed below. Here's why I like them:
iShares Asia 50 ETF (ASX: IAA)
I'm very bullish on the Asian economy over the next decade and feel it could be a great place to invest some funds. A good way to achieve exposure to Asia's economic growth is the iShares Asia 50 ETF. This fund aims to provide investors with the performance of the S&P Asia 50 Index, before fees and expenses. It has been designed to measure the performance of the 50 leading companies listed in China, Hong Kong, Macau, Singapore, South Korea and Taiwan. These include AIA Group, China Mobile, Samsung, and Tencent Holdings.
VanEck Vectors S&P/ASX MidCap ETF (ASX: MVE)
Investors interested in gaining exposure to a large number of locally listed growth shares might want to consider the Vectors S&P/ASX MidCap ETF. It invests in a diversified portfolio of shares with the aim of providing investment returns (before costs) that closely track the returns of the Midcap 50 Index. Its top holdings include the likes of A2 Milk Company Ltd (ASX: A2M), Afterpay Ltd (ASX: APT), SEEK Limited (ASX: SEK), and Xero Limited (ASX: XRO).
Vanguard MSCI Index International Shares ETF (ASX: VGS)
Another international-focused ETF to consider buying is the Vanguard MSCI Index International Shares ETF. This diverse ETF provides investors with exposure to many of the world's largest companies. The ETF is marketed towards buy and hold investors seeking long-term capital growth, some income, and international diversification. Its top holdings include Apple, Amazon, Facebook, Nestle, and Visa.
