This morning, I wrote about two ASX exchange-traded funds (ETFs) that currently hold a place in my personal investing portfolio. Whilst I love a good ASX ETF, funds that call Australia home are not alone in said portfolio. In addition to a collection of individual ASX and US stocks, I also own a few US ETFs.
The ASX is a fantastic place to invest in. But the US markets just offer some things that the ASX doesn't. As such, I like to proverbially pick apples from both trees when building my portfolio.
So today, let's discuss two of the US ETFs that I currently own, and why.
2 US ETFs that I buy for my ASX stock portfolio
iShares Core Dividend Growth ETF (NYSE: DGRO)
First up, we have this dividend growth ETF from familiar ASX fund provider iShares. Unlike the ASX, the US isn't exactly known for its heavy-hitting dividend stocks. However, US stocks tend to have far more impressive dividend growth streaks than ASX companies, though, with the 'States hosting a number of companies with 50-year-plus track records of annual dividend pay rises.
This ETF holds some of those stocks, such as Johnson & Johnson, Coca-Cola, and Procter & Gamble. But it also holds a number of dividend 'up-and-comers', including Apple, Visa, and Microsoft.
Most of DGRO's holdings have been steadily raising their dividends for many years. As such, the US ETF's annual dividends (which are paid quarterly) are also steadily rising.
I regard this ETF as a portal into some of the US' best dividend stocks. Together with the Schwab US Dividend Equity ETF (NYSE: SCHD), I intend to hold DGRO for many, many years, and (hopefully) enjoy the constantly rising dividend payouts along the way.
Schwab US Large-Cap Growth ETF (NYSE: SCHG)
As most ASX investors would know, the United States is home to the best tech stocks on the planet. No other market can rival the likes of Apple, Microsoft, Amazon, Netflix, Alphabet, NVIDIA and their peers in terms of scope, scale and global dominance of their respective markets.
I used to own the BetaShares Nasdaq 100 ETF (ASX: NDQ) for broad exposure to large-cap US growth stocks like the ones listed above. However, I swapped out this ASX ETF for a US ETF a few months ago. That US ETF is the Schwab US Large-Cap Growth ETF.
This fund gives me a similar level of exposure to the largest and most successful growth companies in the United States. But instead of charging me 0.48% per annum for the privilege, SCHG only asks 0.04% per annum, more than ten times cheaper. That fee difference can make a big impact on one's overall returns over a long period of time.
SCHG's portfolio contains all of the stocks listed above, as well as Mastercard, Costco, Palantir Technologies and Booking Holdings. It adds some pleasing diversification to my portfolio, as well as high potential returns going forward. I was happy to make the swap.
