If you’re aiming to add some diversification to your portfolio in March, then you might want to look at exchange traded funds (ETFs).
This is because they are an easy and effective way to achieve diversification as they give investors access to a large and diverse number of shares through a single investment.
But which ETFs would be good options? Two to consider are listed below:
BetaShares Global Cybersecurity ETF (ASX: HACK)
The first ETF to look at is the BetaShares Global Cybersecurity ETF. It aims to track the performance of an index providing investors with exposure to the leading companies in the growing global cybersecurity sector.
This means many leading companies in the industry could be in a position to grow at an above-average rate over the next decade.
Among the companies you’ll be investing in with this ETF are Accenture, Cisco, Cloudflare, Crowdstrike, and Okta.
As you may have noticed, there aren’t any Australian companies. This is because this particular niche is under-represented on the ASX. This arguably makes this ETF even more attractive for local investors.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
Another ETF for ASX investors to look at is the Vanguard MSCI Index International Shares ETF. This fund gives investors exposure to some of the world’s biggest companies.
Vanguard notes that the fund gives investors access to a broadly diversified range of shares that allows them to participate in the long-term growth potential of international economies outside Australia. It feels this makes it suitable for buy and hold investors that are seeking long-term capital growth, some income, and international diversification.
At present, the fund contains a total of 1,528 listed companies globally. Among its largest holdings you’ll find the likes of Apple, Nestle, Johnson & Johnson, Procter & Gamble, Tesla, Visa. It also offers an attractive 1.8% dividend yield.