Exchange traded funds (ETFs) can be a fantastic way to balance out your portfolio.
This is because ETFs provide investors with easy access to a large and diverse group of shares that you wouldn’t usually have access to.
With that in mind, I have picked out two ETFs that are popular with investors right now. Here’s what you need to know about them:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
The first ETF to look at is the incredibly popular BetaShares NASDAQ 100 ETF. As you might have guessed from its name, this ETF gives investors exposure to 100 of the largest non-financial companies on the famous Nasdaq index.
This means that investors will be buying a slice of some of the world’s most well-known and highest quality companies. These include the likes of Amazon, Apple, Facebook, Microsoft, Netflix, Tesla, and Google parent, Alphabet.
In addition to this, the index includes a number of upcoming companies which could be the tech stars of the future.
The BetaShares NASDAQ 100 ETF share price has generated a return of 17% over the last 12 months.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
Another ETF to consider is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to 1,528 of the world’s largest listed companies from major developed countries.
Vanguard notes that it offers investors low-cost access to a broadly diversified range of securities that allows them to participate in the long-term growth potential of international economies outside Australia.
Among its largest holdings are the likes of Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.
The ETF also offers investors a source of income. At the last count, its units were providing investors with a 1.9% yield. While not the largest yield you’ll find, it is still significantly better than term deposits and savings accounts.
Where to invest $1,000 right now
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*Returns as of February 15th 2021
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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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