2 excellent ETFs to buy for portfolio diversification

These ETFs are highly rated for a reason…

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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.

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