Diversified Stock Portfolio: 5 Sector ETFs and International ETFs to Buy

In this article, we discuss 5 diversified sector and international ETFs to buy. If you want to see more ETFs in this selection, check out Diversified Stock Portfolio: Sector ETFs and International ETFs to Buy. 

5. Vanguard Diversified High Growth Index ETF (ASX:VDHG.AX)

Vanguard Diversified High Growth Index ETF (ASX:VDHG.AX) aims to mirror the overall returns of the various indices of the underlying funds that it invests in, based on their Strategic Asset Allocation. The performance of the ETF is measured against the High Growth Composite Index. This is done without taking into account any fees, expenses or taxes. The fund was formed on November 20, 2017 and is domiciled in Australia. The ETF charges a management fee of 0.27%. Some of the holdings of Vanguard Diversified High Growth Index ETF (ASX:VDHG.AX) include Vanguard Australian Shares Index Fund, Vanguard International Shares Index Fund, Vanguard International Shares Index Fund, and Vanguard Global Aggregate Bond Index Fund, among others. 

4. SPDR S&P China ETF (NYSE:GXC)

SPDR S&P China ETF (NYSE:GXC) seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P China BMI Index. The ETF aims to offer a selection of publicly traded companies based in China that are accessible to foreign investors. The fund was established March 20, 2007 and charges an expense ratio of 0.59%. As of February 9, 2023, SPDR S&P China ETF (NYSE:GXC)’s 30-day dividend yield came in at 1.61%, with a semi-annual distribution frequency. SPDR S&P China ETF (NYSE:GXC) has 939 holdings in its portfolio. 

Alibaba Group Holding Limited (NYSE:BABA) is a prominent stock owned by SPDR S&P China ETF (NYSE:GXC), representing 7.71% of the total portfolio. On January 11, Barclays analyst Jiong Shao raised the firm’s price target on Alibaba Group Holding Limited (NYSE:BABA) to $141 from $114 and maintained an Overweight rating on the shares. In a research note to investors, the analyst stated that the company’s results for the quarter ending December are expected to show revenue that is largely in line with expectations and improved margins. He also noted that Alibaba should see a return to growth in gross merchandise volume for the first time in a year in the quarter ending March, which is considered to be a more significant development.

According to Insider Monkey’s Q3 data, 105 hedge funds were bullish on Alibaba Group Holding Limited (NYSE:BABA), and David Blood and Al Gore’s Generation Investment Management held a prominent stake in the company, comprising 4.50 million shares worth $360.7 million. 

Polen Capital made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its October investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) is the leading e-commerce company in China. The stock was weak over the quarter as they reported a quarterly revenue decline. The company has been heavily impacted by the continued covid-19 lockdowns throughout China and the aggressive rate increases and deteriorating outlook for China’s economy have weighed heavily on the stock. The share price has also been under pressure due to the U.S. Securities and Exchange Commission’s plans to delist Chinese tech stocks in 2024 if they do not provide access to audit files.”

3. Schwab Emerging Markets Equity ETF (NYSE:SCHE)

Schwab Emerging Markets Equity ETF (NYSE:SCHE)’s aim is to track as closely as possible, before fees and expenses, the total return of the FTSE Emerging Index. The index offers access to large- and mid-cap equities from more than 20 emerging markets. Schwab Emerging Markets Equity ETF (NYSE:SCHE) was launched on January 14, 2010 and its total net assets came in at $8.80 billion as of February 10, 2023. The fund offers an expense ratio of 0.11% and the total holdings were 1,838. It is a passively managed ETF with a 30-day SEC yield of 2.88%.  

Tencent Holdings Limited (OTC:TCEHY) is a prominent stock in Schwab Emerging Markets Equity ETF (NYSE:SCHE)’s portfolio, representing 4.76% of the total holdings. It is a Chinese investment holding company, provides value-added services (VAS) and Online advertising services in Mainland China and internationally. The company operates through VAS, Online Advertising, FinTech and Business Services, and Others segments. On January 25, Barclays analyst Jiong Shao raised the price target on Tencent Holdings Limited (OTC:TCEHY) to $48 from $36 and maintained an Equal Weight rating on the shares. According to the analyst’s research note, the firm’s gaming and advertising trends, as well as the 2023 outlook, are all improving. The analyst specifically mentioned that domestic gaming is “finally poised to grow again.” 

2. SPDR Portfolio Europe ETF (NYSE:SPEU)

SPDR Portfolio Europe ETF (NYSE:SPEU) seeks to provide investment results that correspond generally to the total return performance of the STOXX Europe Total Market Index. The ETF offers broad exposure to the Western Europe region. The fund was established on October 15, 2002 and offers a gross expense ratio of 0.09%. SPDR Portfolio Europe ETF (NYSE:SPEU) has 1,810 holdings in its portfolio and a 30-day SEC yield of 2.55%, with a quarterly dividend distribution frequency.

ASML Holding N.V. (NASDAQ:ASML) is a prominent position in SPDR Portfolio Europe ETF (NYSE:SPEU)’s portfolio, representing 2.29% of the total holdings. It is a Netherlands-based company that develops, markets, commercializes, and services advanced semiconductor equipment systems for memory and logic chipmakers. On January 25, ASML Holding N.V. (NASDAQ:ASML) declared a €1.37 per share interim dividend, which is payable on February 15. 

According to Insider Monkey’s third quarter database, 51 hedge funds were bullish on ASML Holding N.V. (NASDAQ:ASML), compared to 47 funds in the last quarter. Ken Fisher’s Fisher Asset Management is the leading position holder in the company, with 4.7 million shares worth nearly $2 billion. 

Here is what Baron Opportunity Fund has to say about ASML Holding N.V. (NASDAQ:ASML) in its Q2 2022 investor letter:

“ASML Holding N.V. designs and manufactures semiconductor production equipment. It specializes in photolithography equipment, where light sources are used to photo-reactively create patterns on wafers that become printed circuits. ASML is the dominant leader across all types of lithography but, most importantly, is the only company selling equipment for extreme ultra-violet (EUV) lithography, the latest generation technology.

Indeed, because of the stalling out of Moore’s Law, advanced lithography of larger and multi-patterned silicon chips has been critical for leading-edge chip manufacturing and continued improvement in semiconductor chip performance over time. The company is well positioned to continue growing above industry rates as it rapidly adds capacity across its entire business to meet rising industry demand, especially from leading-edge customers continuing to invest to stay ahead of their competitors and drive chip performance forward.

Additionally, the introduction of high-NA EUV technology in the middle of the decade will add another leg to the growth opportunity.”

1. BNY Mellon International Equity ETF (NYSE:BKIE)

BNY Mellon International Equity ETF (NYSE:BKIE) tracks the performance of Morningstar Developed Markets ex-US Large Cap Index, which offers broad exposure to large-cap equities in developed markets outside the United States. The fund was established on April 22, 2020 and provides an expense ratio of 0.04%. 

Novo Nordisk A/S (NYSE:NVO) is a prominent holding in BNY Mellon International Equity ETF (NYSE:BKIE)’s portfolio. It is a Denmark-based healthcare company, engaged in the research, development, manufacture, and marketing of pharmaceutical products worldwide. On January 3, JPMorgan analyst Richard Vosser raised the firm’s price target on Novo Nordisk A/S (NYSE:NVO) to DKK 1,100 from DKK 925 and maintained an Overweight rating on the shares.

According to Insider Monkey’s data, 40 hedge funds were bullish on Novo Nordisk A/S (NYSE:NVO) at the end of the third quarter of 2022, compared to 32 funds in the prior quarter. Jim Simons’ Renaissance Technologies is the largest stakeholder of the company, with 15.30 million shares worth $1.5 billion. 

Mawer Investment Management made the following comment about Novo Nordisk A/S (NYSE:NVO) in its fourth quarter 2022 investor letter:

“Reflecting the broad nature of the market’s advance during the quarter, the vast majority of portfolio holdings delivered positive returns. Some of the stronger performers across our equity funds were those that could be classified as more economically sensitive in nature, bolstered by the market’s hope that central banks may not need to be as aggressive as feared in tightening monetary policy with the latest inflation prints having shown signs of moderation. This included companies such as footwear and apparel brand Nike, coffee machine manufacturer De’Longhi, and industrial equipment dealer Finning International. Other standout performers included health care giant Novo Nordisk A/S (NYSE:NVO) and specialty insurer Trisura Group, with both companies reporting strong results.”

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