If you're looking to add some diversity to your portfolio, then exchange traded funds (ETFs) could help you achieve this. ETFs provide investors with exposure to a wide range of themes, sectors, and indices through a single investment.
Two ETFs that you might want to get better acquainted with are listed below. Here's what you need to know:
ETFS Battery Tech & Lithium ETF (ASX: ACDC)
The first ETF to look at is the ETFS Battery Tech & Lithium ETF. It aims to provide investors with a return that, before fees and expenses, tracks the performance of the Solactive Battery Value-Chain Index.
This index represents the performance of companies that are providers of electrochemical storage technology and mining companies that produce metals used for the manufacturing of battery-grade lithium batteries.
Given the outlook for lithium prices due to increasing demand and tight supply, the companies included in the fund appear well-placed for growth in the coming years. This could be good news for the ETF.
VanEck S&P/ASX MidCap ETF (ASX: MVE)
Another ETF for investors to look at is the VanEck S&P/ASX MidCap ETF. This ETF gives investors exposure to a diversified portfolio of ASX-listed shares.
It aims to provide investment returns before fees and other costs of the S&P/ASX Midcap 50 Index. This index represents the mid cap universe for Australia and comprises all the members of the S&P/ASX 100 excluding those in the S&P/ASX 50.
VanEck notes that Australian mid caps are the "sweet spot" of the Australian equity universe and represent companies with the spirit of small companies combined with the maturity of large companies. Its holdings include companies from various sectors such as A2 Milk Company Ltd (ASX: A2M), Carsales.Com Ltd (ASX: CAR), Pilbara Minerals Ltd (ASX: PLS), and REA Group Limited (ASX: REA).
