Like many ASX shares in this 2020 stock market crash, most exchange-traded funds (ETFs) on the ASX have seen significant volatility in the last 2 months. Whilst I'm normally more of a fan of individual ASX shares for my own investments, I also appreciate the easy international diversification that an ETF can give one's portfolio.
With that in mind, here are 3 internationally focused ASX ETFs I would buy for my portfolio for 2020 and beyond whilst prices are relatively cheap.
BetaShares Nasdaq 100 ETF (ASX: NDQ)
This ETF from BetaShares tracks the largest 100 companies on the US Nasdaq index. Most newer, tech-focused companies choose to list on the Nasdaq exchange, and as such, you can get some exposure to some of the biggest 'movers and shakers' of the global economy through it. NDQ's current top holdings include names like Apple, Facebook, Amazon, Alphabet, Intel, and Cisco. Netflix, Tesla, and Starbucks also make an appearance.
As you can see, you are getting some of the best companies with the best brands in the world with this fund – all in one basket. As such, I think this is a great ETF to put on your 2020 watchlist.
VanEck Vectors Wide Moat ETF (ASX: MOAT)
MOAT is another ETF that just follows US companies but selects only those that are deemed to possess a long-term competitive advantage (or as Warren Buffett has put it: moat). Companies with such moats are generally a bit more conservative than those you might get in the Nasdaq ETF, but I think this is a definite positive in the current bear market environment.
Currently, MOAT's holdings include Kellogg, Nike, American Express, Pfizer, Microsoft and Altria – all companies whose products you might even find in your own home. For this reason, I think there is a compelling case for an investment in MOAT in today's uncertain economic climate.
iShares Global Consumer Staples ETF (ASX: IXI)
This ETF only holds companies that make the essential household goods that are classified as 'consumer staples'. Think food, drinks, cleaning materials, and personal hygiene products. Some of IXI's top holdings will be very familiar names like Nestle, Proctor & Gamble, PepsiCo, Coca-Cola, Walmart and Colgate-Palmolive. My personal favourite holding is Mondelez, which makes Oreos and Cadbury chocolate!
These kinds of companies have held up remarkably well in this bear market – probably due to the fact that many consumers have been stocking up on them. As such, I think they are great investments for 2020 that can give you a bit of that 'sleep well at night' goodness.
