Diversification is an important consideration when building a portfolio of shares. If you're buying ASX companies, it's important to consider a range of industries and geographic locations.
This can help shield your portfolio from any unfavourable economic conditions weighing on a particular company or industry – imagine only owning mining shares while commodity prices plummet.
It is also important to assess what you already own in your ASX portfolio and identify sectors or locations that may benefit from increased exposure.
Below are 3 ASX shares I believe offer new investors quick access to diversified earnings.
Macquarie Group (ASX: MQG)
Macquarie is one of the largest companies listed on the ASX. Although it has both feet firmly planted in the financial sector, I believe its earnings offer investors greater diversity than its banking peers.
To start, Macquarie offers a diverse business mix. It provides services to clients across 4 distinct business groups: banking and finance, commodities and global markets, asset management, and Macquarie capital. Around 60% of Macquarie's net profit is generated from annuity-style activities, and the remaining 40% is from market-facing activities.
In addition to the different business segments, Macquarie's revenue is also generated globally, with more than half of Macquarie's footprint overseas throughout Asia, the Americas, Europe, the Middle East and South Africa.
Betashares Nasdaq 100 ETF (ASX: NDQ)
ETFs have become almost synonymous with diversification. Giving investors the ability to access a large range of companies through a single trade can provide (almost) instant diversification – a strong appeal.
So, if you're looking for growth and diversification outside of ASX shares, an ideal candidate is the Betashares Nasdaq 100 ETF.
This ETF provides exposure to the 100 largest, non-financial businesses on the US NASDAQ exchange. This includes household names such as Apple, Facebook, Netflix, Tesla, Amazon, Alphabet, Intel and many more.
I like this ETF as it is heavily weighted towards tech businesses, unlike the financial and banking heavy ASX.
Washington H. Soul Pattinson and Co Ltd (ASX: SOL)
Washington H. Soul Pattinson and Co, or 'Soul Patts', is an Australian investment conglomerate that boasts a diversified portfolio of investments.
From starting out owning pharmacies, the company has since branched out with a broad range of listed and unlisted investments. These include a stake of more than 40% in Brickworks Limited (ASX: BKW), around 20% of Australian Pharmaceutical Industries Ltd (ASX: API) and about a quarter of TPG Telecom Ltd (ASX: TPM).
In addition to its large holdings in listed equities, Soul Patts also invests in real estate and unlisted equities, further diversifying its portfolio.
