If you're looking for an easy way to build a diverse portfolio, then exchange traded funds (ETFs) could be the answer.
That's because ETFs allow investors to invest in a large number of shares through just a single investment, providing instant diversification in some cases.
With that in mind, listed below are three ETFs that could be good options for investors. Here's what you need to know about them:
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BetaShares Global Energy Companies ETF (ASX: FUEL)
The first ETF to look at is the BetaShares Global Energy Companies ETF. This ETF provides investors with access to the leading players in the energy sector. And given how energy prices are very strong right now, it could be a great place to have some investment exposure. This ETF includes the likes of BP, Chevron, ExxonMobil, and Royal Dutch Shell. The former has just released its quarterly update and revealed a profit of US$8.45 billion. This was BP's second largest quarterly profit in its history and followed a record profit from Shell last week.
iShares S&P 500 ETF (ASX: IVV)
Another ETF for investors to consider this month is the iShares S&P 500 ETF. This popular ETF could be a great way to diversify a portfolio because it gives investors access to a massive 500 of the top listed U.S. companies. In addition, iShares notes that the fund offers long-term growth opportunities for a portfolio. This is thanks to the inclusion of high quality companies such as Amazon, Apple, Disney, Facebook, JP Morgan, Johnson & Johnson, Microsoft, Tesla, and Visa.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
A final ETF for investors to look at is the Vanguard MSCI Index International Shares ETF. When it comes to diversification, this ETF has it in spates. That's because the Vanguard MSCI Index International Shares ETF allows investors to invest in approximately ~1,500 of the world's largest listed companies. This means you'll be owning many of the world's biggest and brightest companies such as Amazon, Apple, AstraZeneca, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, Roche, and Visa.
