If you’re wanting to invest in international shares for diversification, then exchange traded funds (ETFs) could help you achieve this.
But which ETFs should you look at? Here are two popular ETFs that could be worth considering:
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
The first ETF to look at is the BetaShares Asia Technology Tigers ETF. It gives investors exposure to 50 of the largest technology and ecommerce companies that have their main area of business in Asia.
Among the companies you’ll be owning a slice of are tech giants such as Alibaba, Baidu, Infosys, JD.com, Samsung, and Tencent Holdings. In addition, you’ll be buying lesser known but high quality tech companies such as Kuaishou Technology, Meituan Dianping, and Pinduoduo.
In respect to the latter, Pinduoduo is an e-commerce platform that offers a wide range of products from daily groceries to home appliances. The Pinduoduo platform connects distributors with consumers directly through an interactive shopping experience. This allows shoppers to team up to buy items in bulk at lower prices. Earlier this year the company revealed that it had 788 million annual active customers.
Another share in the ETF is Tencent. It is a multinational technology conglomerate and one of the largest companies in the world. It is best known for its communication and social platforms, Weixin (WeChat) and QQ, which connect over a billion users with each other.
And while regulatory concerns in China have been weighing on the ETF, the recent weakness in its share price could have created a buying opportunity for patient long-term focused investors.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
Another ETF to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to many of the world’s largest listed companies.
In fact, the ETF currently has a total of 1503 shares in its portfolio. These include companies from all sectors and almost all continents. Vanguard notes that the ETF allows local investors to participate in the long-term growth potential of international economies outside Australia.
Among its 1500+ holdings are the likes of Apple, BP, Exxon Mobil, Facebook, Johnson & Johnson, JP Morgan, LVMH, Nestle, Procter & Gamble, and Visa.
The ETF also provides investors with a source of income. Based on its current share price, the ETF’s dividend yield stands at 1.56%.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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