The share market is firmly in the red today on worries about the ongoing trade war escalations between the US and China.
It's US President Donald Trump that has caused the latest worries because he's ramping up the tariffs to a higher percentage than the initial levy he set over the past year or so.
Unsurprising it caused the US market to fall and the ASX 200 (ASX: XJO) is also down by 1.4%.
But I think it's hard to know exactly what shares to buy in this environment with the playing field changing all the time. But it could still be an idea to buy shares of US-focused exchanged-traded funds (ETF).
Two of the best ETFs to consider could be iShares S&P 500 ETF (ASX: IVV) and BetaShares NASDAQ 100 ETF (ASX: NDQ).
The S&P 500 is an index which has 500 of the biggest (and best) businesses listed in the US as part of the portfolio, with many of the leading companies generating earnings from around the world. Microsoft, Berkshire Hathaway, Visa and so on are high-quality holdings. One of the best things about this ETF is its extremely low management fee of only 0.04% per annum. The ETF has dropped around 3% today.
The NASDAQ 100 ETF is an ETF which is invested in 100 of the biggest of the businesses listed on the NASDAQ in the US. It gives a greater exposure to the biggest tech shares of Microsoft, Amazon, Facebook, Alphabet and Apple, which is attractive if that's what you want.
There's no guarantee at all that this will be the worst of the market's fears about the trade war. There could be worse days over the next year. The rest of this century could be a struggle between the US and China for global dominance. But we have to try to take advantage of investment opportunities when they arise, such as now.
Foolish takeaway
Both of these ETFs could provide ASX-beating returns, but I'd rather go for the S&P 500 ETF due to the extremely low management fees and the excellent global diversification its offers.
