Question: Any reasons why? I am interested in adding international ETF’s to my portfolio. Can you let me know of any worthwhile ones that I can research and get into at this point in time? I suppose timing is the big question with the stock markets doing so well.

Answer (by Paul Rickard): If you are looking at offshore ETFs, the major ETFs are:

1. for broad based exposure to the USA, iShares S&P 500 – IVV – which tracks the S&P 500 or Vanguard’s US Total Marker Share ETF – VTS;
2. for broad based global exposure : iShares Core MSCI World – IWLD (currency hedged version through IHWL) or Vanguard’s International Shares Index Fund – VTS (currency hedged version through VGAD).

There are also a number of country/regional ETFs; sector ETFs; and themed or sub-sector ETFs.

Question: With regard to Peter’s article on the impact of Amazon, are you still positive on the outlook for WES (Coles) in your Income portfolio?

Answer (by Paul Rickard): Yes, I am still comfortable with Wesfarmers.

I am a little surprised about how well the consumer staples sector has performed over the last few weeks. I think this is partly due to some short covering on Woolworths. To be honest, I didn’t expect to see Wesfarmers at $44.00.

The portfolio is underweight the sector, with Wesfarmers being my preference simply due to more attractive pricing metrics.

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.