5 ETFs for an effective global portfolio

Building a diversified portfolio from zero doesn’t need complexity, clever trading, or a spreadsheet that looks like a NASA launch plan. With five well-chosen ETFs, investors can spread their money across Australia, the world’s biggest companies, bonds, and cash.

The backbone of any ETF portfolio is broad market exposure. A total world or developed markets ETFs give you instant access to thousands of companies across countries and sectors.

This portfolio leans on a 30% Australian base, around 35% global equities, and a stabilising mix of bonds and cash. It’s designed to be boring in the best possible way.

Australian backbone

Every portfolio needs a strong local anchor, and ETFs like BetaShares Australia 200 ETF (ASX: A200) or Vanguard Australian Shares Index ETF (ASX: VAS) will do the heavy lifting. Tracking the top 200 companies on the ASX, they give instant exposure to the pillars of the Australian market: Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), CSL Ltd (ASX: CSL), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and Wesfarmers Ltd (ASX: WES).

Banks, miners, and healthcare dominate, delivering dividends and a familiar economic link to home. At roughly 30% of a portfolio, this ETF provides stability and income without stock-picking risk.

Global heavyweights

For broad offshore exposure, iShares Global 100 ETF (ASX: IOO) owns the biggest corporate names on the planet. This ETF holds around 100 global giants, including Apple, Microsoft, Amazon, and Alphabet.

The US leads the weighting, but Europe and Japan feature strongly, giving investors exposure to multiple economies through companies with global revenue streams. IOO forms the backbone of global equity exposure without overcomplicating things.

Growth kicker

While iShares Global 100 covers the world’s blue chips, BetaShares NASDAQ 100 ETF (ASX: NDQ) adds growth firepower. Tracking the NASDAQ-100 Index (NASDAQ: NDX), it is packed with technology and innovation leaders such as Nvidia, Apple, Microsoft, Meta and Alphabet.

This tech ETF is more volatile, but it has historically driven returns during periods of strong global growth. A modest allocation helps tilt the portfolio toward the future without dominating it.

Liquidity and safety

Cash is unfashionable until markets fall apart. When share markets wobble, bonds often soften the blow, providing income and stability. This ETF acts as the portfolio’s shock absorber rather than a return engine.

iShares Core Composite Bond ETF (ASX: IAF) invests in high-interest bank deposits, offering capital stability and ready liquidity. It won’t deliver fireworks, but it provides flexibility, whether for opportunities, expenses, or peace of mind.

Put together, these five ETFs or equivalent funds create a low-cost, diversified, easy-to-manage portfolio that spans Australian shares, global leaders, growth stocks, bonds, and cash. No guessing, just broad exposure built for the long haul.

The post 5 ETFs for an effective global portfolio appeared first on The Motley Fool Australia.

More reading

• I would put $10,000 of my savings into these ETFs
• Invest in the best stocks in the world with these ASX ETFs
• Investing in the VanEck International Quality ETF (QUAL)? Here’s what you’re really buying
• 3 ASX ETFs that could be perfect for beginner investors in 2026
• Own IOO ETF? Here’s what happened with your investment in 2025

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, CSL, Meta Platforms, Microsoft, Nvidia, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, BHP Group, CSL, Meta Platforms, Microsoft, Nvidia, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.