2 top ASX ETFs to buy right now

The iShares S&P 500 ETF (ASX: IVV) is one of two ASX ETFs to buy today for ASX share portfolio diversification and long-term returns

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Exchange-traded funds (ETFs) can be a great tool to use to diversify your portfolio of ASX shares. Whilst there are many ETFs available on the ASX, here are two ETFs to consider today that can add diversification to your portfolio whilst charging relatively low management fees.

iShares S&P 500 ETF (ASX: IVV)

This ETF from iShares charges one of the lowest management fees of any ASX ETF. It will set you back just 0.04% per annum for your position. That equates to $4 a year for every $10,000 invested. The S&P 500 Index (INDEXSP: .INX), which is the index this ETF tracks, holds 500 of the largest companies over in the United States.

The US is home to many of the best companies in the world. And I'm sure most investors would be happy with its top holdings. These include Apple Inc (NASDAQ: AAPL), Microsoft Corp (NASDAQ: MSFT), Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) and Amazon.com Inc (NASDAQ: AMZN). As well as older, blue chip companies like Coca-Cola Co (NYSE: KO), Johnson & Johnson (NYSE: JNJ) and Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B).

As you can probably gather, tech companies form a large block of this ETF. But that could work out to be an advantage for an ASX investor, seeing as tech companies are dwarfed by miners and banks in our own S&P/ASX 200 Index (ASX: XJO).

This ETF also offers a very solid long-term performance track record. It has returned an average of 16.41% per annum for the past 10 years.

iShares Global Consumer Staples ETF (ASX: IXI)

This ETF runs on a slightly different track. It also holds a global portfolio of companies that all dwell in the consumer staples industry. Consumer staples can be loosely defined as any goods or services we can't live without. Think foods, drinks and household essentials, as well as vices like alcohol and tobacco. These kinds of companies can be useful in a portfolio, seeing as demand for their products is not usually affected by adverse economic conditions or changing technology.

Its largest holdings include companies like Coca Cola, PepsiCo Inc (NASDAQ: PEP), Nestle, L'Oreal, Procter & Gamble Co (NYSE: PG) and Colgate-Palmolive Company (NYSE: CL). But there's a couple of ASX companies in there too. These include Coles Group Ltd (ASX: COL) and Treasury Wine Estates Ltd (ASX: TWE).

54% of the Global Consumer Staples ETFs' holdings are US companies. But it also has significant exposure to the United Kingdom, Switzerland, France and Japan. It charges a management fee of 0.46% per annum, and has returned an average of 11.2% per annum over the past 10 years.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Coca-Cola, Johnson & Johnson, PepsiCo, and Procter & Gamble. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Berkshire Hathaway (B shares), and Microsoft. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Johnson & Johnson and recommends the following options: short March 2023 $130 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), long January 2022 $1920 calls on Amazon, short January 2022 $1940 calls on Amazon, long March 2023 $120 calls on Apple, and long January 2023 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Berkshire Hathaway (B shares). 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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