If you’re looking for a way to diversify your portfolio to offer some protection from market shocks and optimise your returns, then I think the two exchange traded funds (ETFs) listed below could be worth considering.
As well as giving investors exposure to a wide range of shares in different markets and industries, I believe these ETFs also have the potential to provide strong returns for investors in the future. They are as follows:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
If you were to buy only one ETF, I would make it the BetaShares NASDAQ 100 ETF. This is because this ETF gives investors access to the 100 shares that are trading on the famous NASDAQ 100 index. These include countless household names such as Amazon, Facebook, Microsoft, and Netflix.
One area of the market which is not represented on the index is the financial sector. This could make it a good option for investors that have a high weighting towards shares such as Australia and New Zealand Banking GrpLtd (ASX: ANZ) and the big four banks.
iShares Global Healthcare ETF (ASX: IXJ)
Another ETF to consider buying is the iShares Global Healthcare ETF. If your portfolio is lacking exposure to the healthcare sector, then I think this ETF would be a good way to do it. As well as giving investors access to Australian healthcare shares such as CSL Ltd (ASX: CSL), Ramsay Health Care Limited (ASX: RHC), and Sonic Healthcare Limited (ASX: SHL), it provides exposure to many global healthcare giants.
This includes the likes of Johnson & Johnson, Novartis, Pfizer, Roche, and Sanofi. And given the positive outlook for the healthcare sector over the next couple of decades due to ageing populations and increased chronic disease, I believe it could provide strong returns for investors over the long term.
And here are more top shares which could provide strong long term returns…
One trick to potentially generating life-changing wealth from the stock market is to buy early-stage growth companies when their share prices still look dirt cheap.
Motley Fool’s resident tech stock expert Dr. Anirban Mahanti has identified 5 stocks he thinks are screaming buys. And you can buy them now for less than $5 a share!
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More reading
- 2 ASX ETFs I would buy for diversification and strong long term returns
- 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
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 CSL Ltd. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Ramsay Health Care Limited and Sonic Healthcare Limited. 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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