If you’re looking to add a bit of international exposure to your portfolio, then it is remarkably easier than you might think.
This is thanks to the emergence of exchange traded funds (ETFs). Through just a single investment, ETFs can provide investors with exposure to a wide range of international indices and themes.
Two ETFs that I think would be great additions to a balance portfolio are listed below:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
If you’re a fan of tech shares then you might want to look at the BetaShares NASDAQ 100 ETF. This ETF gives investors exposure to the 100 largest non-financial shares on the famous NASDAQ index. Among its biggest holdings you’ll find tech giants Apple, Microsoft, Amazon, Facebook, and Google. Whereas some of its smaller holdings include online conferencing company Zoom, Chinese search engine giant Baidu, and eBay. On the whole, I believe the majority of companies on the NASDAQ 100 are well-placed to grow at a quicker than average rate. This could drive strong returns for investors in this ETF.
Vanguard US Total Market Shares Index ETF (ASX: VTS)
Another option to consider buying is the Vanguard US Total Market Shares Index ETF. If you want a more balanced ETF with less of a focus on tech shares, then this ETF could be the one for you. It provides investors access to approximately 3,500 shares listed on the U.S. stock market. While this means it gives investors exposure to many of the tech giants listed above, it also gives investors access to blue chips such as Berkshire Hathaway, Johnson & Johnson, Proctor & Gamble, and Visa and Mastercard. And as many of these companies pay dividends, it also provides investors with a source of income. At present the ETF offers a trailing 2% dividend yield.
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More reading
- Tech shares! Should we even invest in anything else?
- 3 of the best ETFs to give ASX investors international exposure
- Are Macquarie Group shares worth investing part of $3,000 into this June?
- 3 top ETFs you can easily diversify your portfolio with immediately
- Where to invest $10,000 into ASX shares immediately
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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