For many investors, the ASX 200 will have a strong representation within their portfolio.
This could be in the form of blue-chip shares, or an ASX ETF tracking these large Australian companies.
However, the ASX 200 has large exposure to the financials, materials (mining and resources), and energy sectors. This makes it heavily influenced by banking, commodities, and resource-driven industries.
It's important for investors to gain exposure to overseas markets global sectors and growing trends.
Here are two ASX ETFs I would consider adding to your portfolio.
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iShares Global Healthcare ETF (ASX: IXJ)
The iShares Global Healthcare ETF is designed to measure the performance of global biotechnology, healthcare, medical equipment and pharmaceuticals companies. It includes large, mid and small-capitalisation stocks.
It has more than 1200 underlying holdings, with large exposure to US based companies.
This fund could provide diversification into global healthcare companies, reducing reliance on the ASX 200's concentration in financials and resources.
Many of these companies are defensive shares. This means demand for the products and services remains high even during an economic downturn when consumers reduce their overall spending.
Put simply, that's because people still need access to healthcare regardless of economic conditions.
This is different to other sectors like consumer discretionary. Some of these companies engaged in luxury items or travel are more reliant on disposable income.
VanEck Vectors Video Gaming And eSports ETF (ASX: ESPO)
While the previous fund is a defensive asset, the ESPO ETF may be a worthwhile investment for those looking to gain exposure to a rapidly growing sector.
The fund gives investors exposure to a diversified portfolio of the largest and most liquid companies involved in video game development, esports and related hardware and software globally.
According to a report from VanEck, the value of digital gameplay is rising rapidly with revenue expected to reach US$188.8 billion in 2025.
The global player base is projected to increase by 4.4% to 3.6 billion people in 2025. To put that into perspective, this is more than the top three most-populated countries combined.
Once again, this theme is largely based in countries outside of Australia, allowing ASX investors to gain exposure to a growing industry based largely in the US, China and Japan.
This ASX ETF has already climbed 121.31% since its inception in September 2020.
