Earlier today, we looked at a couple of exchange traded funds (ETFs) that Bell Potter is tipping as buys for domestic exposure. You can read about them here.
Now, let's take a look at three international ETFs that the broker thinks Aussie investors should be adding to their portfolios. Here's what it is saying about them:
L1 Capital International (Hedged) Active ETF (ASX: L1HI)
The first international ETF that could be a buy according to Bell Potter is the L1 Capital International (Hedged) Active ETF.
It notes that the fund is headed up by experienced portfolio manager David Steinthal, taking a blended quality and value investment style in its approach to markets.
The broker likes it due to its strategy following a high-conviction, benchmark unaware approach to investing, focusing on quality and value in security selection. It explains:
We like the prudent investment process of the manager and their stylistic preference to quality as a factor in security selection. This is supported by a highly experienced investment team which has shown capability in developing nuanced insights into markets whilst developing an investment process that ensures strict adherence to their investment style with minimal drift.
Plato Global Alpha Fund Complex ETF (ASX: PGA1)
Another international ETF that Bell Potter is bullish on right now is the Plato Global Alpha Fund Complex ETF.
It uses quantitative modelling to generate trading ideas to invest dynamically and generate returns in all market environments. This includes exploiting inefficient markets through a systematic approach. Bell Potter commented:
We like the managers commitment to continuous improvement, extensive experience in managing quantitative strategies and approach to factor modelling in developing an allocation Plato as a quantitative manager.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
Finally, the popular Vanguard MSCI Index International Shares ETF could be worth a look according to the broker.
It is invested in over 1,200 international stocks, providing significant diversification. Its holdings include many of the world's largest stocks listed in major developed countries. This includes Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Tesla (NASDAQ: TSLA), Toyota, and LVMH (FRA: MOH).
Commenting on the fund, Bell Potter said:
We like VGS as a simple method of gaining global equity market exposure through a reputable issuer in Vanguard. Through this allocation, we have a preference for indices ex-Australia to reduce portfolio overlap whilst allocating to developed markets only given some inefficiencies in emerging market benchmarks.
