Question: Is there an ASX-listed exchange traded fund (ETF) for Nasdaq stocks? And is the iShares Core S&P 500 ETF (IVV) a good way of getting US exposure? I gather IVV is the largest and most widely invested for general US exposure.
Answer (By Paul Rickard): There is the new ETF from Betashares – the NASDAQ 100 ETF. Sock code is NDQ (see www.betashares.com.au).
Alternatively, consider the broader indices – the S&P 500 via iShares IVV, as you mentioned, or the US Total Market from Vanguard (VTS)
If I was investing in the US market, I would be looking at the broader market. My pick would be IVV.
Question 2: I am looking at getting out of my Australian bond investment of $50,000 and also a managed balanced fund with $60000, due to low yield. I’m thinking of investing in direct shares on the ASX top 50, a growth managed fund and an overseas equities fund.
Answer 2 (By Paul Rickard): I would be a little wary of exiting a bond fund just due to low yield – with Australian government treasury bonds yielding between 2% and 3.08%, that is what you should be expecting from a bond fund.
Clearly, what you are proposing will increase your risk – and provided you are comfortable with this exposure, then that is a valid investment strategy.
For direct shares, you may wish to consider our model portfolios – income or growth (see this article).
You may also wish to consider an exchange traded fund or broad based listed investment company (see this article).
For offshore, have a look at this recent article.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
