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Exchange traded funds (ETFs) are very popular with investors and it isn’t hard to see why. Never has it been so easy for investors to gain access to groups of shares from all corners of the world.
But given how many ETFs there are to choose from, it can be hard to decide which ones to add to a portfolio. To narrow things down for readers, I have picked out two highly rated and popular ETFs to get better acquainted with today. They are as follows:
iShares S&P 500 ETF (ASX: IVV)
The first ASX ETF for investors to look at is the iShares S&P 500 ETF. This ETF aims to provide investors with the performance of Wall Street’s famous S&P 500 Index, before fees and expenses.
BlackRock, the operator of iShares, highlights that the ETF gives investors exposure to the top 500 U.S. stocks through a single investment. This allows Australian investors to use the fund to diversify internationally and seek long-term growth opportunities for a portfolio.
Among its largest holdings are Alphabet (Google), Amazon, Apple, JP Morgan, Johnson & Johnson, Meta (Facebook), Microsoft, Nvidia, and Tesla.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
Another ETF for investors to look at is the VanEck Vectors Morningstar Wide Moat ETF. This ETF gives investors access to a diversified portfolio of ~50 fairly priced US companies with sustainable competitive advantages or moats (hence the ETF’s name).
Companies with moats have historically generated strong returns for investors. As a result, it is for this reason that Warren Buffett looks for companies with this quality when picking investments. And given the strong returns the legendary investor has generated over the long term, it is hard to argue against this strategy.
If you buy this ETF you’ll be owning a slice of companies such as Alphabet, Amazon, Boeing, Microsoft, Salesforce, and Walt Disney.