Exchange traded funds (ETFs) continue to grow in popularity with investors and it isn’t hard to see why. Never has it been so easy for investors to gain access to groups of shares from all corners of the world.
But given how many ETFs there are to choose from, it can be hard to decide which ones to add to a portfolio.
To narrow things down, I have picked out two highly rated and popular ETFs to get better acquainted with in December. They are as follows:
iShares S&P 500 ETF (ASX: IVV)
The first ETF for investors to look at this month is the iShares S&P 500 ETF. It aims to provide investors with the performance of the famous S&P 500 Index, before fees and expenses.
The operator of the fund, BlackRock, highlights that the ETF gives investors exposure to the top 500 U.S. stocks through a single investment. It notes that Australian investors can use this to diversify internationally and seek long-term growth opportunities for a portfolio.
Among its largest holdings are Amazon, Apple, Facebook/Meta, JP Morgan, Johnson & Johnson, Microsoft, Nvidia, and Tesla.
The iShares S&P 500 ETF has provided in investors with a return of 18.5% per annum since 2016. This means a $10,000 investment five years ago would now be worth almost $23,500.
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 over 1,500 of the world’s largest listed companies from major developed countries.
The manager of the fund, Vanguard, notes that the ETF offers low-cost access to a broadly diversified range of securities that allow investors to benefit from the long-term growth potential of the global economy. Vanguard appears to believe this makes it suitable for buy and hold investors seeking long-term capital growth, some income, and international diversification.
Among the companies included in the fund are giant such as Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.
The Vanguard MSCI Index International Shares ETF has generated a total return of almost 15.8% per annum over the last five years. This would have turned a $10,000 investment into almost $21,000.
The post 2 highly rated international ETFs for ASX investors appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of August 16th 2021
- What kind of dividend does the Vanguard International Shares ETF (ASX:VGS) pay?
- Why is the Vanguard Australian Shares Index ETF (ASX:VAS) the most successful Aussie ETF?
- VGS vs VAS: Which ETF comes out on top?
- 2 leading ASX ETFs for excellent global diversification
- 3 ETFs for ASX investors to buy now
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 and has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF and iShares Trust – iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/31GFXkf