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 normally 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:
VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)
The first ETF to consider is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors exposure to a portfolio of the largest companies involved in video game development, eSports, and gaming related hardware and software globally.
The fund manager points out that these companies are well-placed to benefit from the increasing popularity of video games and eSports.
In addition to this, VanEck believes this ETF would be a good option for investors that already have exposure to FAANG stocks or want alternative options in the tech sector.
Among the fund’s largest holdings are graphics processing units giant Nvidia and games developers Take-Two Interactive (GTA, Red Dead), Electronic Arts (FIFA, Sims, Apex Legends), and Activision Blizzard (Call of Duty).
Vanguard MSCI Index International Shares ETF (ASX: VGS)
If diversification is your aim, then you’ll find it hard to beat the Vanguard MSCI Index International Shares ETF.
This ETF gives investors a slice of over 1,500 of the world’s largest listed companies from major developed countries.
This means you’ll be buying global giants such as Amazon, Apple, Facebook, Home Depot, Johnson & Johnson, Nestle, Procter & Gamble, Tesla, and Visa.
Vanguard believes that this ETF would be suitable for buy and hold investors that are seeking long-term capital growth, international diversification, and some income. In respect to the latter, the fund currently offers a 1.6% dividend yield.