Exchange traded funds (ETFs) provide investors with the opportunity to invest in a large number of shares from all corners of the world through a single investment.
This clearly has gone down well with Australian investors. One in seven Australians reportedly own an ETF, with a total of $136.9 billion invested in them locally as of late last year.
But given the high number of ETFs to choose from, it can be hard to decide which ones to buy.
To narrow things down, listed below are two high quality options to consider when the market reopens. Here's what you need to know about them:
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Vanguard MSCI Index International Shares ETF (ASX: VGS)
The first ETF for investors to look at is the Vanguard MSCI Index International Shares ETF.
This is one of the most popular ETFs on the Australian share market. And that's not a big surprise because the Vanguard MSCI Index International Shares ETF provides investors with exposure to ~1,500 of the world's largest listed companies.
This makes the ETF a great way for investors to instantly diversify their portfolio and gain exposure to global economic growth.
Among the companies you'll be owning a slice of with this ETF are global giants such as Apple, ASML, Exxon Mobil, Johnson & Johnson, Nestle, Procter & Gamble, and Visa.
iShares S&P 500 ETF (ASX: IVV)
Another ETF for investors to consider buying when the market reopens is the iShares S&P 500 ETF.
This popular ETF aims to provide investors with the performance of Wall Street's famous S&P 500 Index before fees and expenses. This index is home to 500 of the largest listed companies on the US market.
BlackRock, the owner of iShares, believes the ETF can be used by Australian investors to diversify internationally and seek long-term growth opportunities for a portfolio.
Among the 500 companies included in the fund are giants including Amazon, Apple, Berkshire Hathaway, Facebook, JP Morgan, Johnson & Johnson, Microsoft, and Tesla.
