Diversify your portfolio with these quality ETFs

These ETFs could give your portfolio some diversification…

| More on:
The letters ETF on wooden cubes with golden coins on top of the cubes and on the ground

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're wanting to add some diversification to your portfolio this month, then you might want to look at exchange traded funds (ETFs). These funds help investors achieve diversification with relative ease by providing access to a large and diverse number of different shares through a single investment.

With that in mind, listed below are two ETFs which could be worth considering. Here's what you need to know about them:

iShares Global Consumer Staples ETF (ASX: IXI)

The first ETF to look at is iShares Global Consumer Staples ETF. This fund aims to provide investors with the performance of the S&P Global 1200 Consumer Staples Sector Index before fees and expenses.

This index is designed to measure the performance of global consumer staples companies that produce essential products, including food, tobacco, and household items. Given how demand for these types of products is relatively consistent whatever the economy throws at them, this ETF is likely to be suitable for investors that are looking for low risk options.

Among its largest holdings are the likes of Coca-Cola, Nestle, PepsiCo, Procter & Gamble, Unilever, and Walmart.

Over the last 10 years, the iShares Global Consumer Staples ETF has generated an average total return of 12.1% per annum.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Vectors Morningstar Wide Moat ETF gives investors access to a diversified portfolio of 49 attractively priced US companies with sustainable competitive advantages or "moats".

Moats are something Warren Buffett looks for when he's picking shares to invest in. And given his long term investment success, it certainly could be worth following his lead.

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.

Over the last 10 years, the index the ETF tracks has generated an average return of 20.2% per annum.

Should you invest $1,000 in Aristocrat Leisure Limited right now?

Before you buy Aristocrat Leisure Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Aristocrat Leisure Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

James Mickleboro does not own any shares mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended iShares Global Consumer Staples 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.

More on ETFs

A happy young couple lie on a wooden deck using a skateboard for a pillow.
ETFs

3 high-conviction ASX ETFs to buy and hold forever

These funds could be quality picks for investors looking for buy and hold options.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
ETFs

5 excellent ASX ETFs to buy now

Here are five funds that could be top picks for Aussie investors this month.

Read more »

Business people discussing project on digital tablet.
ETFs

Should you invest $3,000 into these top ASX ETFs this month?

Is now a good time to buy these funds? Let's find out.

Read more »

ETF spelt out with a piggybank.
ETFs

Is it too late to buy the VTS ETF and MOAT ETF after the rebound?

Was the best time to buy these ETFs last month?

Read more »

Hologram of a man next to a human robot, symbolising artificial intelligence.
ETFs

AI, cybersecurity, and defence: 3 megatrend ASX ETFs to watch now

Want to invest in some of the most exciting megatrends? Check out these funds.

Read more »

A business woman flexes her muscles overlooking a city scape below.
ETFs

3 ASX ETFs that could be strong buys in May

Looking for some investment ideas? Here are three to consider in May.

Read more »

Army man and woman on digital devices.
ETFs

3 reasons why Vaneck Global Defence ETF could beat the ASX 200 over the next year

Let's take a look at why this fund could be a top pick for investors.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
ETFs

5 ASX ETFs to buy and hold until 2035

Check out these funds if you are looking to make buy and hold investments.

Read more »