I am looking to diversify my share portfolio which is currently dominated by Australian shares, what international shares & technology stocks would you recommend?

I am 64 and looking to diversify my share portfolio, (which is currently dominated by quality Australian shares other than 5% of my portfolio in Berkshire Hathaway B shares) to include a greater allocation of international shares and technology stocks. I did have a holding in MHH but sold out. I am however concerned about the strength of the tech sector this year. What are your thoughts about the ETF’s IVV and NDQ, given the strength of the AUD now would you not hedge?

A: If you want broad US market exposure, go for IVV. The currency hedged version is IHVV.

 

If you are concerned about the strength of the tech sector, I would go with NDQ which tracks the NASDAQ 100. Tech stocks make up about 48% of the index.

 

Over the medium term, I think the Aussie dollar will go higher due to weakness in the US dollar, so I would hedge. The hedged version, which trades under ticker HNDQ, is not as liquid and the management fee of 0.51% pa is a little higher.

 

You could also consider FANG from ETF Securities. 10 stocks (the 5 FANGs plus Tesla, Baidu, Alibaba, Twitter & NVIDIA). Management fee just 0.35%. No currency hedged version.


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