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.
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:
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iShares S&P 500 ETF (ASX: IVV)
The first ETF for investors to look at is the iShares S&P 500 ETF. It aims to provide investors with the performance of the famous S&P 500 Index. As its name implies, this index comprises 500 of the largest listed companies on the US stock market.
BlackRock, which manages the ETF, believes it would be appropriate for an investor seeking capital growth with a medium to high risk/return profile, rather than one with a short investment timeframe. It also notes that it could be used to diversify internationally.
Among the ETF's largest holdings are giants such as Alphabet, Amazon, Apple, Warren Buffett's Berkshire Hathaway, Facebook/Meta, JP Morgan, Microsoft, and Tesla, to name just a handful.
VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)
Another ETF for investors 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 related hardware and software globally.
This is a very large market. For example, VanEck estimates that there are 2.7 billion active gamers in the world. This is more more than Netflix subscriptions and active Apple devices.
Furthermore, competitive video gaming audiences are expected to reach 646 million people globally in 2023, driven in part by rising population of digital natives. All in all, this bodes well for companies included in the fund such as graphics processing units (GPU) giant Nvidia and games developers Take-Two Interactive (GTA, Red Dead) and Electronic Arts (FIFA, Sims, Apex Legends).
