An exchange traded fund (ETF) is a kind of security that tracks an index, sector, commodity, or
other asset, but which can be purchased or sold on a stock exchange the same way as a regular
stock. These funds provide investors an access to those shares that they would not otherwise
have access to.
So, the ETFs also provide a way to balance the portfolio and earn good returns. Here we will
discuss two such ETFs which could be good options for investors in June.
iShares S&P 500 ETF (ASX:IVV)
The fund managed by BlackRock Investment Management (Australia) Limited. seeks to match
the return of the S&P 500 before fees and expense. The fund issues dividend on a quarterly
basis.
The fund measures the performance of large-cap stocks based out of the US. The fund provides
investors exposure to the leading 500 US stocks via single investment and can be used to
diversify the portfolio internationally.
It offers long-term growth opportunities to investors. The largest holdings of the fund include
Amazon, Apple, and Tesla.
The ETF gave an average return of 18.1% per annum in the last 10 years.
Betashares NASDAQ 100 ETF (ASX:NDQ)
The other fund worth considering is Betashares NASDAQ 100 ETF.
The fund provides investors access to 100 leading non-financial companies listed on the
NASDAQ. A few of the leading firms include Amazon, Apple, and Facebook.
These tech companies have been among the top performers on the tech-heavy index for the
past five years. According to experts, these are expected to continue their domination in the
next five years as well.
The fund gave a return of 30.8% to its investors in the past one year. Over the last three years,
the ETF gave an average annual return of 27.52%, and 26.35% per annum. The investors have
received 21.57% return each year since its launch in May 2015.