One of the biggest mistakes many Australian investors make is concentrating too heavily on local shares.
While the ASX has plenty of high-quality shares, it represents only a small slice of the global market.
This means many investors miss out on exposure to world-leading stocks in sectors like technology, healthcare, and consumer brands.
The good news is that exchange-traded funds (ETFs) make it easy to diversify globally in just a few trades.
And listed below are three ASX ETFs that can give you a world-class portfolio without leaving the local market. Here's what you need to know about them:
Vanguard MSCI Index International Shares ETF (ASX: VGS)
The Vanguard MSCI Index International Shares ETF is one of the simplest ways to own a slice of the developed world's largest stocks. It tracks the MSCI World ex-Australia Index, giving investors a slice of over 1,200 global businesses across the U.S., Europe, and Asia.
Its holdings currently include giants such as Apple (NASDAQ: AAPL), Nestle (SWX: NESN), and LVMH Moet Hennessy Louis Vuitton SE (FRA: MOH). With such breadth, the Vanguard MSCI Index International Shares ETF works perfectly as a foundation for global diversification, complementing an Australian-focused core.
Betashares Nasdaq 100 ETF (ASX: NDQ)
For those who want direct exposure to some of the best U.S. stocks, the Betashares Nasdaq 100 ETF could be the way to do it. It provides access to the Nasdaq 100, home to some of the world's most influential stocks including Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), and Amazon (NASDAQ: AMZN).
Over the long term, the Nasdaq has been one of the best-performing indices globally. And it wouldn't be surprising if this trend continued, given its exposure to megatrends like artificial intelligence, cloud computing, and e-commerce, which are likely to shape the next few decades.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
Finally, the VanEck Morningstar Wide Moat ETF could be an ASX ETF to buy for global investing. It takes a different approach by focusing on quality. It invests in fairly valued U.S. companies that have sustainable competitive advantages that allow them to fend off competition and grow profits over time.
Current holdings include Alphabet (NASDAQ: GOOGL), Adobe (NASDAQ: ADBE), Nike (NYSE: NKE), and Walt Disney (NYSE: DIS). The strategy has a track record of strong performance, and is one that Warren Buffett uses, arguably making the VanEck Morningstar Wide Moat ETF a great complement to broader index funds.
