2 wonderful ETFs to buy for portfolio diversification

These ETFs are highly rated for a reason…

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If you're wanting to diversify your portfolio with some exchange traded funds (ETFs), then you could do a lot worse than the two ETFs listed below that trade on the Australian share market.

Both of these ETFs provide investors with a large basket of shares from across the globe. Here's why they could be top options for investors right now:

iShares Global Consumer Staples ETF (ASX: IXI)

The first ETF for investors to look at is the iShares Global Consumer Staples ETF.

This ETF has been designed to measure the performance of the world's leading consumer staples companies. These are the companies that produce or sell essential everyday products such as food, tobacco, and household items.

The beauty of these products is that demand for them is relatively consistent whatever is happening in the economy. As a result, given the current economic environment, it could be seen as a good option for investors that are looking for lower risk options.

Among its 100+ holdings are household names such as Coca-Cola, Coles Group Ltd (ASX: COL), Colgate-Palmolive, Diageo, L'Oreal, Mondelez, Nestle, PepsiCo, Procter & Gamble, Unilever, Walmart, and Woolworths Group Ltd (ASX: WOW).

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF for investors to consider is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to approximately 1,500 of the world's largest listed companies from major developed countries.

This means that investors can participate in the long-term growth potential of international economies in one fell swoop.

Vanguard believes the ETF could be suitable for buy and hold investors seeking long-term capital growth, some income, and international diversification.

Among the companies included in the fund are giants such as Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has positions in and has recommended iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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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