If you’re aiming to diversify your portfolio and optimism your future returns, then I think exchange traded funds could be worth considering.
Three exchange traded funds that I believe have the potential to provide strong returns for investors over the next decade are listed below. Here’s why I like them:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
If you were to buy just one exchange traded fund, I would recommend you pick the BetaShares NASDAQ 100 ETF. This is because this fund gives investors access to the 100 shares that are trading on the famous NASDAQ 100 index. These include many of the biggest and brightest companies in the world such as Amazon, Apple, Facebook, Microsoft, Netflix, and Google parent, Alphabet. It is also worth noting that the fund has no exposure to the financial sector, which could make it ideal for investors that are invested heavily in the big four banks.
VanEck Vectors Australian Banks ETF (ASX: MVB)
But if you don’t have any exposure to the big four banks, and want some, then you might want to consider the VanEck Vectors Australian Banks ETF. I think this exchange traded fund is great for investors that want exposure to the sector but aren’t sure which of the banks to buy. This is because this fund gives investors access to all of the big four, the regional banks, and investment bank Macquarie Group Ltd (ASX: MQG) through a single investment.
VanEck Vectors China New Economy ETF (ASX: CNEW)
A final exchange traded fund to consider buying is the VanEck Vectors China New Economy ETF. This fund gives investors access to a portfolio of companies in China which have outstanding growth prospects. The companies are in sectors which are making up “the New Economy.” This includes the technology, health care, consumer staples, and consumer discretionary sectors. The VanEck Vectors China New Economy ETF is invested in 120 companies, which it believes represent growth at a reasonable price.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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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