Investors that are interested in diversifying their portfolios by investing in international shares might want to consider some of the many exchange traded funds (ETFs) that are listed on the ASX.
But given the large number of ETFs for investors to choose form, it can be hard to decide which ones to choose over others.
In order to narrow things down for you, I’ve picked out two ETFs that I think would be great additions to most portfolios.
Here’s why I think they could provide strong returns for investors over the long term:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
The first option for investors to consider buying is the BetaShares NASDAQ 100 ETF. This ETF has a strong focus on technology and gives investors diversified exposure to a high-growth sector that is under-represented on the ASX.
By investing in this fund, you’ll be buying a slice of a number of the biggest and brightest companies in the world. This includes tech behemoths Alphabet (Google), Amazon, Apple, Facebook, Microsoft, and Netflix. In addition, a number of other household names such as Starbucks, Tesla, and Zoom are included in the fund.
I believe the majority of the companies included in the fund have very positive long term outlooks. As a result, I suspect the Nasdaq 100 ETF could outperform the ASX 200 meaningfully over the next decade.
VanEck Vectors China New Economy ETF (ASX: CNEW)
Another exchange traded fund to consider buying is the VanEck Vectors China New Economy ETF. This fund gives Australian investors exposure to the growing Chinese economy through a total of 120 promising companies.
According to VanEck, this includes many of the most fundamentally sound companies in China which have the best growth prospects in sectors making up the New Economy. These are sectors such as technology, healthcare, consumer staples, and consumer discretionary.
As I’m very bullish on the Chinese economy over the next decade, I believe these companies are well-placed to grow with it and generate strong returns for investors.
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.
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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. 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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