If you’re looking to add some international exposure to your portfolio, then using exchange traded funds (ETFs) is both a quick and very effective way to achieve this.
This is because ETFs will allow you to invest in a range of countries, markets, sectors, and even themes.
But given the large number to choose from, which ETFs should you buy for international exposure today? I’ve picked out two that I think could be great additions to most portfolios. Here’s why I would buy them:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
If you’re looking for exposure to the United States, then you might want to consider buying the BetaShares NASDAQ 100 ETF. If you buy this ETF, you’ll be getting a piece of 100 leading non-financial companies on the famous NASDAQ 100 index. This includes countless household names such as Google’s parent Alphabet, Amazon, Apple, Facebook, Microsoft, Netflix, and Starbucks. I believe these 100 companies have brighter than average long term outlooks, which could lead to the BetaShares NASDAQ 100 ETF outperforming the ASX 200 over the 2020s.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
Another ETF for investors to consider buying for international exposure is the Vanguard MSCI Index International Shares ETF. This ETF gives investors access to some of the biggest and brightest companies in the world. In fact, at present the fund is invested in a total of 1,547 listed companies across major developed countries. Over one-third of its portfolio is allocated to technology and healthcare shares at present. And given the favourable long term outlooks of these sectors, I see this as a big positive. Among its holdings you’ll find the likes of Apple, Johnson & Johnson, NVIDIA, Pfizer, Procter & Gamble, Tesla, and United Health. Overall, I think it has a strong chance of outperforming the ASX 200 over the long term as well.
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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 has recommended BETANASDAQ ETF UNITS 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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