It's been a fantastic day for ASX shares so far this Wednesday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has gained a rosy 0.82% and is up to just under 8,200 points.
Although we've had a bit of a wild week or two on the ASX, the fact remains that the ASX 200 Index is still very close to its recent all-time highs. The index last touched a new record in the middle of last month – 8,384.5 points. At today's pricing, the ASX 200 remains around 2% off of that all-time high.
As such, one wouldn't exactly describe today's stock market as a playground for value investors.
But I still think there are ASX shares and exchange-traded funds (ETFs) out there that are worth investing in, even when the market is sitting near these all-time highs.
Here are two of them, specifically ASX ETFs.
2 ASX shares that I'll be adding to my ASX 200 portfolio
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
First up is the VanEck Wide Moat ETF. This ETF has been one of my favourite ASX investments for a long time, and I am hoping to add to my existing position soon.
This ETF isn't an index fund that blindly tracks an entire market. Instead, it is an actively managed fund that holds a relatively concentrated portfolio of American stocks. These stocks are selected on their perceived possession of a wide economic moat.
An economic moat is a term first used by legendary investor Warren Buffett. It refers to a durable, intrinsic competitive advantage that a company can possess, which helps it stay ahead of its competition.
This could be a powerful brand, a low-cost advantage, or producing a product or service that customers find difficult to avoid using.
Buffett has long touted the value of investing in stocks that possess these kinds of moats. And that's exactly what this ETF aims to do. In its current portfolio, MOAT includes American companies like Walt Disney, Campbell Soup Co, Adobe, and Starbucks.
This ETF's strategy has proven effective in recent years. As of 31 October, the VanEck Wide Moat ETF has returned an average of 14.81% per annum over the past five years. As such, I would be happy to add more of this investment right now.
iShares Global Consumer Staples ETF (ASX: IXI)
Next, we have another ASX ETF, the iShares Global Consumer Staples ETF. Even though the markets are near all-time highs, I would argue that we are still in a very uncertain investing climate. There are significant geopolitical tensions around the world, and we are in the midst of a volatile US election season.
With all this in mind, I think the iShares Consumer Staples ETF is a prudent choice for any portfolio. This is arguably an all-weather investment, thanks to the nature of the stocks this ETF holds. Consumer staples stocks, such as current IXI holdings like Procter & Gamble, Colgate-Palmolive and Coca-Cola, tend to perform well in any economic climate.
I hold this ETF because of this reason, and I would happily invest some more cash to build out my position right now.
