If you're building a retirement portfolio, then it would make sense to avoid risky ASX shares and focus on strong, high quality options.
But which ASX shares might be suitable?
Listed below are a couple of ASX shares that could be good options for a balanced retirement portfolio. Here's what analysts are saying about them:
Betashares Global Quality Leaders ETF (ASX: QLTY)
With Betashares chief economist, David Bassanese, believing that there's a 50% chance that the global economy will fall into a recession, he believes investors should be looking at defensive options.
One of the exchange traded funds (ETFs) that Bassanese rates highly is the Betashares Global Quality Leaders ETF. This ETF gives investors exposure to a portfolio of approximately 150 global companies (excluding Australia).
These are the crème de la crème of listed companies and are only included if they fit a very strict criterion.
To be included in the fund, a company needs to rank highly on four key metrics: return on equity, debt-to-capital, cash flow generation ability, and earnings stability.
Three companies that tick these boxes and you will be owning a slice of with the ETF are Google parent Alphabet, tech leader Microsoft, and GPU giant Nvidia.
Woolworths Limited (ASX: WOW)
Another ASX share that could be a good option for a retirement portfolio is Woolworths.
It is of course the retail conglomerate behind the eponymous supermarket chain, Countdown supermarkets in New Zealand, Big W, Everyday Rewards, and Pet Culture.
Thanks to its collection of strong brands, its positive exposure to inflation, and its defensive qualities, it could be a great pick for investors looking for lower risk options.
Goldman Sachs certainly appears to agree with this. It is also very positive on Woolworths' outlook due to its digital and omni-channel advantage, which it expects to drive further market share and margin gains.
The broker currently has a conviction buy rating and $41.00 price target on the company's shares. In addition, Goldman is expecting fully franked dividend yields in the region of 3% through to FY 2025.
