If you don't currently have the funds to build a truly diverse portfolio, then I think exchange traded funds (ETFs) could be just what you need.
This is because through a single investment, ETFs give investors exposure to whole indices, industries, or themes.
There are a growing number of ETFs out there for investors to choose from, but two of my favourites are named below. Here's why I like them:
iShares Asia 50 ETF (ASX: IAA)
The first ETF to consider buying is the iShares Asia 50 ETF. According to BlackRock, as its name implies, this fund aims to provide investors with the performance of the S&P Asia 50 Index, before fees and expenses. This index is home to the 50 leading companies that are listed in China, Hong Kong, Macau, Singapore, South Korea, and Taiwan. As I'm bullish on the Asian economy over the next decade, I feel it could be a great place to invest some funds.
Included in the fund are companies such as AIA Group, China Mobile, Hyundai, Samsung, Taiwan Semiconductor, and Tencent Holdings. The latter is the owner of the hugely successful WeChat app.
VanEck Vectors S&P/ASX MidCap ETF (ASX: MVE)
If you want to add some exposure to growth shares, then the VanEck Vectors S&P/ASX MidCap ETF could be a great way to do it. This ETF invests in a diversified portfolio of ASX-listed shares with the aim of providing investment returns that closely track those of the S&P/ASX Midcap 50 Index.
VanEck notes that Australian mid cap shares are the sweet spot of the Australian equity universe and represent companies with the spirit of small companies combined with the maturity of large companies. Among its holdings you'll find the likes of Afterpay Ltd (ASX: APT), Domino's Pizza Enterprises Ltd (ASX: DMP), Flight Centre Travel Group Ltd (ASX: FLT), and Xero Limited (ASX: XRO). Given the quality on offer in the fund, I believe it has the potential to outperform the benchmark ASX 200 index over the coming years.