If you’re wanting to add some exchange traded funds (ETFs) to your portfolio, then you may want to check out the ones listed below.
Here’s why these two ETFs are popular with investors right now:
iShares Global Consumer Staples ETF (ASX: IXI)
The first ETF to look at is the iShares Global Consumer Staples ETF. This fund has been designed to measure the performance of the world’s leading consumer staples companies. These are companies that produce or sell essential products such as food, tobacco, and household items.
As demand for these types of products is relatively consistent whatever is happening in the economy, this ETF is likely to be suitable for investors that are looking for lower risk options.
Among its 111 holdings are the likes of Coca-Cola, Colgate-Palmolive, Diageo, L’Oreal, Mondelez, Nestle, PepsiCo, Procter & Gamble, Unilever, Walmart, and Woolworths Group Ltd (ASX: WOW).
Over the last 10 years, the iShares Global Consumer Staples ETF has generated an average total return of 13.4% per annum for investors. This would have turned a $10,000 investment into $35,000.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
Another ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. This fund gives investors exposure to a diversified portfolio of 51 good value, US companies with sustainable competitive advantages or moats.
Historically, companies with moats have generated strong returns for investors. This is why Warren Buffett is such a big fan of investing in companies that boast them. And given his track record, it is hard to argue against this.
Among the ETF’s holdings are the likes of Google’s parent Alphabet, Amazon, American Express, Boeing, Coca-Cola, Microsoft, Philip Morris, Pfizer, Salesforce, ServiceNow, and Yum! Brands.
Over the last 10 years, the index the fund tracks has outperformed the ASX 200 index by some distance. During this time, it has generated an average total return of 22.6% per annum. This would have turned a $10,000 investment into a massive ~$77,000.