If you don’t have the funds to build a truly diverse portfolio, then exchange traded funds (ETFs) could be worth considering. This is because ETFs give investors access to a large number of different shares through just a single investment.
With that in mind, I have picked out two ETFs that trade on the ASX that could be good options. They are as follows:
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
The BetaShares Asia Technology Tigers ETF provides investors with exposure to many of the biggest tech shares in the Asia market.
Among the companies included in the fund are Alibaba, Baidu, JD.com, Meituan Dianping, NetEase, and Tencent.
Tencent is a multinational technology conglomerate and one of the largest companies in the world. Its communication and social platforms, Weixin (WeChat) and QQ, connect over a billion users with each other and with digital content and services. It also has a rapidly growing games business.
Another company in the fund is Alibaba. It is often referred to as the Amazon of China. It has close to a billion customers across its Alibaba, Taobao, and Tmall brands. From these platforms, the company is estimated to control a sizeable 56% of China’s e-commerce market.
A third company in the fund is Meituan Dianping. It is a bit of a hybrid of Uber Eats and Expedia. Its apps connect consumers with local businesses for food deliveries, hotel bookings, movie tickets, and many other services. During FY 2020 the company was making 24.5 million food deliveries per day and reached almost 500 million active customers.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
The VanEck Vectors Morningstar Wide Moat ETF gives investors easy access to a diversified portfolio of fairly priced US companies with sustainable competitive advantages.
At present there are a total of 49 shares included in the fund. These includes well-known companies such as Amazon, Bank of America, Berkshire Hathaway, Constellation Brands, Intel, McDonalds, and Microsoft.
Warren Buffett looks for moats (sustainable competitive advantages) when he’s picking shares to invest in and it’s not hard to see why. This ETF has smashed the market over the last five and ten years.
In respect to the last five years, the ETF has generated an average return of 19.3% per annum. This compares to a 16.4% per annum return by the S&P 500.
Where to invest $1,000 right now
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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
More reading
- 2 outstanding ETFs for ASX growth investors to buy
- 2 outstanding tech ETFs for ASX investors to buy this month
- 3 high quality ETFs for ASX investors to buy
- 2 highly rated ASX tech shares to buy this month
- Love tech shares? This ASX ETF is a great buy today
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat 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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