As we head into the final days of February, self-managed super fund (SMSF) investors may be reviewing their portfolios and thinking about positioning for the new month.
For many trustees, the priorities are clear: diversification, long-term growth, and sensible risk management.
The good news is that exchange-traded funds (ETFs) can tick all three boxes, offering exposure to global markets without the need to pick individual stocks.
Here are three ASX ETFs that could suit an SMSF portfolio right now.
Image source: Getty Images
Betashares Global Quality Leaders ETF (ASX: QLTY)
The first ETF to consider is the Betashares Global Quality Leaders ETF.
This popular fund focuses on high-quality global stocks that rank highly on four key factors. These are return on equity, debt-to-capital, cash flow generation ability, and earnings stability.
Current holdings include companies such as Microsoft (NASDAQ: MSFT), Eli Lilly (NYSE: LLY), ASML Holding (NASDAQ: ASML), Tokyo Electron, and Lam Research (NASDAQ: LRCX). These are global leaders operating in sectors with long-term growth drivers.
For an SMSF, quality exposure can help reduce the risk of owning weaker businesses that struggle during economic downturns. This fund was recently recommended by analysts at Betashares.
iShares S&P 500 ETF (ASX: IVV)
The iShares S&P 500 ETF provides investors with broad exposure to 500 of the largest stocks on Wall Street.
The portfolio includes Apple (NASDAQ: AAPL), Merck & Co Inc (NYSE: MRK), Nvidia (NASDAQ: NVDA), Walmart (NYSE: WMT), and JPMorgan (NYSE: JPM), spanning technology, healthcare, consumer goods, and financial services.
For SMSF investors looking for a core international holding, the iShares S&P 500 ETF offers scale and diversification in a single trade. In addition, the S&P 500 index has an enviable track record, historically delivering strong long-term returns. This has been supported by innovation and corporate profitability. I don't believe it will be any different over the next decade or two.
Over a retirement time horizon, that broad exposure can play a foundational role.
VanEck MSCI International Value ETF (ASX: VLUE)
To balance growth exposure, the VanEck MSCI International Value ETF adds a value tilt.
This ETF targets international companies trading at attractive valuations based on metrics such as price-to-book and forward earnings. Holdings include firms such as Toyota Motor Corp (NYSE: TM), Pfizer (NYSE: PFE), Rio Tinto Ltd (ASX: RIO), and Qualcomm (NASDAQ: QCOM).
Value stocks can perform well during periods of market rotation or rising interest rates, which is what we are experiencing right now. This fund was recently recommended by analysts at VanEck.
