Building a globally diversified portfolio doesn't require dozens of holdings or a constant stream of trading decisions. This structure with 5 diversified ETFs is simple, transparent, and built for the long haul.

Global X Australia 300 ETF (ASX: A300) 

The foundation starts at home. This ASX ETF provides exposure to the 300 largest companies on the ASX. That means ownership across the full spectrum of Australia's corporate heavyweights.

It includes banks like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC), miners such as BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO), as well as to healthcare leader CSL Ltd (ASX: CSL) and retail giant Wesfarmers Ltd (ASX: WES).

A300 is broad, diversified and low cost, making it well suited to anchor roughly 30% of a portfolio in domestic equities.

iShares S&P/ASX 200 ETF (ASX: IOZ) 

This ASX ETF offers a slightly tighter focus on the 200 largest Australian companies. While there is overlap with A300, IOZ remains one of the lowest-cost ways to gain exposure to the core of the Australian market.

Together, these funds ensure investors capture dividends, franking credits and the performance of Australia's biggest listed businesses.

Betashares Global Shares ETF (ASX: BGBL) 

Global diversification is where long-term growth often accelerates. This Betashares ETF delivers exposure to around 1,500 companies across developed markets.

Investors gain access to global leaders such as Apple Inc. (NASDAQ: AAPL) and Amazon.com Inc (NASDAQ: AMZN), alongside major European and Japanese corporations.

It spreads risk across sectors including technology, healthcare, financials and consumer goods, reducing reliance on any single economy.

Betashares Global Quality Leaders ETF – Currency Hedged (ASX: HQLT) 

For a sharper tilt toward financially strong businesses, this ASX ETF narrows the field to approximately 150 high-quality global companies selected for strong profitability, stable earnings and solid balance sheets.

The currency hedging back to Australian dollars reduces exchange rate volatility, which can smooth returns over time. This ETF adds a disciplined growth overlay to the global allocation.

SPDR Bloomberg AusBond ETF (ASX: BOND)

No portfolio is complete without a defensive component. BOND ETF invests in a diversified basket of Australian government and investment-grade corporate bonds.

Bonds typically move differently to shares, helping cushion portfolios when equity markets fall. They also provide income, adding stability to overall returns.

Foolish Takeaway

An allocation could look like this: around 30% in Australian equities through A300 and IOZ, approximately 35% in global shares via BGBL and HQLT, with the remaining portion in BOND to provide defensive ballast.

The result is a diversified, low-cost portfolio spanning thousands of companies worldwide, supported by high-quality bonds.

There is no need to predict which individual stock will outperform next year. Instead, investors gain broad exposure to the engines of global growth while maintaining stability through disciplined asset allocation. It's a structure designed to endure market cycles rather than chase them.

The post 5 low-cost ASX ETFs for a global diversified portfolio appeared first on The Motley Fool Australia.

Here is a breakdown of the ASX shares I would buy to gain exposure to these trends.

Buy now pay later

Possibly the most hyped sector of 2019 is the credit-like product 'buy-now, pay-later' (BNPL). AfterPay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) are the current 'gold standard' within the industry and we saw the Afterpay share price appreciate 150% and Zip Co 210% in 2019. This trend is not going away either – there were 3 initial public offerings in 2019 within the sector: Sezzle Inc (ASX: SZL), Openpay Group Limited (ASX: OPY), and Splitit Limited (ASX: SPT).

Looking ahead for the sector, in 2020 there will be significant work with industry regulators to secure the place of BNPL products within the current array of financial products already on offer. This has been the largest risk posed to BNPL investors. In a report in the Australian Financial Review, author James Frost examines the risks of BNPL. If regulators manage to get something done this year and it is in favor of BNPL companies, we could see a dotcom-like boom due to the large de-risking of the sector.

To get onboard the BNPL hype train, I would consider buying AfterPay or Zip Co, as both of these companies have large market shares within the BNPL sector, as well as the healthiest financials.

Full disclosure, I've owned shares in Zip Co Ltd since November 2019.

Electric vehicle primary metal producers

Electric vehicles (EV) are all the jazz throughout the Automotive sector. Almost every mainstream car manufacturer has an EV available for purchase, or at least a hybrid, and is planning on ramping up production of these vehicles throughout this coming decade. Pressure from foreign policy makers (particularly in the Euro zone) is making automotive manufacturers race for EV market share. Of course, every EV needs a battery and batteries are made from metals mined from the ground, in particular, lithium, cobalt and nickel.

The companies I would be looking at to capture the EV trend are Pilbara Minerals Limited (ASX: PLS), Galaxy Resources Limited (ASX: GXY) and Altura Mining Ltd (ASX: AJM).

Safe haven assets

Global risk remains high by any metric and as a result, safe haven assets have done extremely well this past year, with Gold and Government Bonds showing that investors are unsure about equites. Gold has appreciated 18% in 2019 and looking like it is going to stay above $1450 USD/oz in 2020. Furthermore 2019 was a record year for reserve banks buying gold.

To capture this trend, I would be buying a mix of Gold and Bond ETFs such as the SPDR S&P/ASX Australian Bond Fund (ASX: BOND) and ETFS Physical Gold ETF (ASX: GOLD). For a bit more exposure to gold I'd also consider buying a gold producer such as Newcrest Mining Limited (ASX: NCM).

Foolish takeaway

These 3 share market trends are well and truly alive and kicking and will be for some time.

BNPL is only going to see more attention this year with a large focus on the regulation of this industry. More and more electric vehicles will make their way onto roads this year, providing great opportunity for our listed battery metal producers. Finally, safe haven assets will continue to be held tightly by the big end of town until interest rates start to be lifted – which you could say with a high degree of confidence won't be until after 2020.

Happy buying!

The post ASX shares I would buy to follow 3 booming sharemarket trends in 2020 appeared first on The Motley Fool Australia.