I think the market crash this year has demonstrated why having a balanced and diversified portfolio is very important.
Luckily for investors, diversification isn’t that hard to achieve. Four shares which I think would be good starters are listed below:
Aventus Group (ASX: AVN)
If you don’t have exposure to real estate, then Aventus could be worth considering. It is a retail property company specialising in large format retail parks. Its rental income has a reasonably high weighting towards everyday needs, with homewares, electrical, furniture, bedding and hardware making up the balance. I think this is a good mix and makes it one of the better options in the sector.
iShares S&P 500 ETF (ASX: IVV)
The iShares S&P 500 ETF is an exchange traded fund that gives investors exposure to the 500 shares listed on Wall Street’s famous S&P 500 index. This index is home to many of the largest and most well-known companies in the world. This includes Apple, Amazon, Johnson & Johnson, Lockheed Martin, McDonalds, Microsoft, Visa, and Walt Disney.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
The Vanguard MSCI Index International Shares ETF is probably as diverse as you can get with shares. This exchange traded fund gives investors exposure to a total of 1,579 of the world’s largest companies listed in major developed countries. Amongst its holdings are the likes of Apple, Nestle, Proctor & Gamble, and Google parent, Alphabet
Woolworths Limited (ASX: WOW)
Finally, I think this conglomerate could be another way to add a bit of diversification to your portfolio. As well as its supermarkets, Woolworths is responsible for a wide range of businesses in different markets. These include Big W, BWS, Dan Murphy’s, and a large number of hotels/pubs. Given the positive outlooks for the majority of these businesses and their defensive qualities, I think Woolworths could be worth considering.
Where to invest $1,000 right now
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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT and 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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