2 excellent ETFs to buy for portfolio diversification

These ETFs are highly rated for a reason…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're wanting to diversify your portfolio with some exchange traded funds (ETFs), then you the two ETFs listed below could be worth considering.

Both of these ETFs provide investors with a large basket of shares from across the globe. Here's why they could be top options for investors right now:

ETF written in white and in shopping baskets.

Image source: Getty Images

iShares Global Consumer Staples ETF (ASX: IXI)

The iShares Global Consumer Staples ETF could be a top option for investors looking to diversify their portfolio. Particularly in the current uncertain economic environment.

That's because this ETF has been designed to measure the performance of the world's leading consumer staples companies.

Consumer staples companies produce or sell essential everyday products such as food, tobacco, and household items. These are products that experience relatively consistent demand whatever is happening in the economy.

Among its 100+ holdings are companies such as Coca-Cola, Coles Group Ltd (ASX: COL), Colgate-Palmolive, Diageo, L'Oreal, Mondelez, Nestle, PepsiCo, Procter & Gamble, Unilever, Walmart, and Woolworths Group Ltd (ASX: WOW).

iShares S&P 500 ETF (ASX: IVV)

Another ETF that could be a great option for diversification purposes is the iShares S&P 500 ETF.

This ETF aims to provide investors with the performance of the famous S&P 500 Index, before fees and expenses.

The S&P 500 Index is home to 500 of the largest listed companies on Wall Street. This means you'll be buying many of the largest and most well-known companies in the world in one fell swoop.

Among the ETF's largest holdings are giants such as Amazon, Apple, Coca-Cola Company, Johnson & Johnson, Mastercard, McDonalds, Microsoft, Nike, Tesla, and Visa.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended iShares Trust - iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

woman looking at iPhone whilst working on a laptop
ETFs

Why I'm seriously thinking about buying these ASX ETFs in April

As April approaches, these are two ASX ETFs I’m watching closely for long-term investing.

Read more »

A couple sit in front of a laptop reading ASX shares news articles and learning about ASX 200 bargain buys
ETFs

Which ASX ETFs have Aussies traded most since the Iran war began?

Aussies have $333 billion invested in ASX ETFs. Here's how their trading patterns have changed this month.

Read more »

a smiling woman sits at her computer at home with a coffee alongside her, as if pleased with her investments.
ETFs

Where I'd invest $50,000 into ASX ETFs today

A $50,000 investment doesn’t need to be complicated. Here’s how I’d use ASX ETFs to build a balanced portfolio.

Read more »

ETF in gold hovering on a laptop.
ETFs

5 ASX ETFs to navigate rising interest rates

These funds could be worth considering if rates stay high.

Read more »

Latin American woman at home checking her budget after grocery shopping.
ETFs

Where to invest if inflation keeps rising – Expert

These funds could outperform if inflation stays high.

Read more »

A panel of four judges hold up cards all showing the perfect score of ten out of ten
ETFs

3 top Vanguard ETFs I would buy in April

Markets have been volatile, but that could create opportunities. Here are three Vanguard ETFs I’d consider as we head into…

Read more »

A woman scratches her head in dismay as she looks at a chaotic scene at a data centre.
ETFs

As AI spending accelerates these ASX ETFs could help you tap into the boom

AI and chips are reshaping industries.

Read more »

A little boy holds his fingers to his head posing as a bull.
ETFs

5 ASX ETFs to buy before the next bull market

These funds could be worth considering when sentiment shifts.

Read more »