I believe that having a diversified portfolio is very important.
For example, if your portfolio was concentrated on travel and bank shares, the value of your portfolio would be down materially this year.
Whereas by spreading your investments across a number of sectors (and even geographies), your portfolio would be in much better shape.
The good news is that thanks to exchange traded funds, diversification isn't that hard to achieve with ASX shares.
Two options for investors to consider for international diversification are listed below:
Betashares Nasdaq 100 ETF (ASX: NDQ)
The first exchange traded fund to consider buying is the Betashares Nasdaq 100 ETF. It gives investors exposure to the 100 largest non-financial companies on the NASDAQ exchange. These includes household names such as Amazon, Apple, Costco, Microsoft, Netflix, Starbucks, and Google parent, Alphabet.
Given how the majority of companies in the fund have very positive outlooks I feel the exchange traded fund offers strong potential returns as well as diversity. As a result, I think it would be a great long term investment option.
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
Another BetaShares exchange traded fund to consider buying for diversity is the Asia Technology Tigers ETF. This exchange traded fund gives you access to some of the most exciting technology companies in the Asian market. These include search engine company Baidu, ecommerce stars Alibaba and JD.com, and WeChat owner Tencent Holdings.
As these companies are revolutionising the lives of billions of people in the region, I believe they are well-positioned for growth in the future. In light of this, as with the Nasdaq 100 ETF, I believe there's a strong probability the BetaShares Asia Technology Tigers ETF will outperform the ASX 200 in the future. This could also make the fund a great buy and hold option for ASX investors.
