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

In this article, we discuss 5 sector ETFs and International ETFs. If you want to read our discussion on the US and international economies, head over to Diversified Stock Portfolio: 11 Sector ETFs and International ETFs To Buy.

5. Vanguard Consumer Discretionary Index Fund ETF (NYSE:VCR)

5-Year Share Price Performance as of March 15: 81.68%

Investors looking for a diversified stock portfolio can pick up the Vanguard Consumer Discretionary Index Fund ETF (NYSE:VCR), which aims to mirror the performance of the MSCI US Investable Market Consumer Discretionary 25/50 Index. Introduced on January 26, 2004, the fund holds net assets of $6.3 billion as of February 29, 2024, with a portfolio of 306 stocks. Its expense ratio came in at 0.10% as of December 22, 2023.

Amazon.com, Inc. (NASDAQ:AMZN) is the largest holding firm of the Vanguard Consumer Discretionary Index Fund ETF Shares (NYSE:VCR). On March 4, Amazon.com, Inc. (NASDAQ:AMZN)’s CEO Andrew Jassy sold 50,000 shares of the firm at an average price of $180, totaling $9 million.

As per Insider Monkey’s fourth quarter database, 293 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), up from 286 funds in the preceding quarter. Ken Fisher’s Fisher Asset Management held the top position in the company, with 41.78 million shares worth $6.35 billion

Alger Spectra Fund stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN) is a well-known online retailer and cloud computing leader. The company’s Amazon Web Services (AWS) business provides utility-scale cloud offerings that facilitate corporate America’s transition to digital systems. During the quarter, shares contributed to performance as Amazon reported strong fiscal third quarter results, where the company beat sales and earnings estimates. Moreover, AWS growth remained steady. contributing to Amazon’s better-than-expected operating income despite concerns around cloud cost optimizations, showing signs of increasing net new cloud workloads. While management noted that customers remain price-conscious and focused on deals, demand remains strong across all segments, leading the company to raise their fiscal fourth quarter revenue and operating income guidance.”

4. Xtrackers MSCI Japan Hedged Equity ETF (NYSE:DBJP)

5-Year Share Price Performance as of March 15: 83.08%

The Xtrackers MSCI Japan Hedged Equity ETF (NYSE:DBJP) ranks 4th on our list of ETFs for a diversified stock portfolio. It aims to mirror the performance of the MSCI Japan US Dollar Hedged Index. The ETF was listed on June 9, 2011. As of March 15, 2024, the fund has net assets of $367.71 million and holds a portfolio of 225 stocks. It has an expense ratio of 0.47%.

Toyota Motor Corporation (NYSE:TM) is the largest holding of the Xtrackers MSCI Japan Hedged Equity ETF (NYSE:DBJP). On February 6, Toyota Motor Corporation (NYSE:TM) announced Q3 fiscal year results. The company reported a GAAP EPS of ¥100.62 and a revenue of ¥12041.1 billion.

As per Insider Monkey’s fourth quarter database, 15 hedge funds were bullish on Toyota Motor Corporation (NYSE:TM), same as the last quarter. Ken Fisher’s Fisher Asset Management is the largest position holder in the firm, with 6.21 million shares valued at $1.14 billion.

Here is what Baron Fund has to say about Toyota Motor Corporation (NYSE:TM) in its Q1 2022 investor letter:

“Toyota’s (NYSE:TM) “kaizen” manufacturing philosophy is based on improving manufacturing by using “just in time” processes to eliminate waste and reduce inventory carrying costs. Clearly the company does not contemplates disruptive change that will dramatically lower costs and improve quality.”

3. SPDR S&P Metals and Mining ETF (NYSE:XME)

5-Year Share Price Performance as of March 15: 94.16%

SPDR S&P Metals and Mining ETF (NYSE:XME) is placed among the best ETFs for a diversified stock portfolio. It aims to replicate the performance of the S&P Metals and Mining Select Industry Index. The index is composed of companies in the metals and mining sector, encompassing a variety of sub-industries such as Aluminum, Coal and Consumable Fuels, Copper, Diversified Metals and Mining, Gold, Precious Metals and Minerals, Silver, and Steel. Launched on June 19, 2006, SPDR S&P Metals and Mining ETF (NYSE:XME) has assets under management totaling $1.71 billion as of March 14, 2024, and it holds a portfolio of 33 stocks. The fund has a gross expense ratio of 0.35% as of March 17, 2024.

ATI Inc. (NYSE:ATI) is the top holding company of the SPDR S&P Metals and Mining ETF (NYSE:XME). The firm manufactures and markets specialty materials and complex components globally. On February 1, ATI Inc. (NYSE:ATI) reported a Q4 non-GAAP EPS of $0.64 and a revenue of $1.06 billion, outperforming market estimates by $0.02 and $10 million, respectively.

According to Insider Monkey’s fourth quarter database, 32 hedge funds were bullish on ATI Inc. (NYSE:ATI), compared to 31 funds in the prior quarter. Richard Driehaus’ Driehaus Capital is the top shareholder of the company, with 1.55 million shares valued at $70.4 million.

Liberty Park Capital made the following comment about ATI Inc. (NYSE:ATI) in its Q1 2023 investor letter:

“We are pleased that Liberty Park Fund, LP has gotten off to a strong start in 2023. January was a particularly strong month for both of our funds, and LPF was able to use the market’s strength to install several new short positions; those positions greatly helped the portfolio in February and March as the market receded.

ATI Inc. (NYSE:ATI) and ZEUS each reported better-than-expected earnings caused by a widening spread between selling prices and commodity prices. We expect these spreads to compress and for margins at each of the companies to revert back to normal levels.”

2. Technology Select Sector SPDR Fund (NYSE:XLK)

5-Year Share Price Performance as of March 15: 180.46%

Next on our list of ETFs for a diversified stock portfolio is the Technology Select Sector SPDR Fund (NYSE:XLK), which aims to match the price and yield performance of the Technology Select Sector Index. It provides targeted exposure to companies involved in technology hardware, software, communications equipment, semiconductors, IT services, and electronic components. Launched on December 16, 1998, Technology Select Sector SPDR Fund (NYSE:XLK) manages assets amounting to $67.11 billion as of March 14, 2024, with a portfolio comprising 64 stocks. Its gross expense ratio, as of March 17, 2024, is 0.09%.

Microsoft Corporation (NASDAQ:MSFT) is the largest holding of the Technology Select Sector SPDR Fund (NYSE:XLK). On March 12, Microsoft Corporation (NASDAQ:MSFT) declared a $0.75 per share quarterly dividend, in-line with previous. It is to be paid on June 13 to shareholders on record as of May 16.

As per Insider Monkey’s fourth quarter database, 302 hedge funds were bullish on Microsoft Corporation (NASDAQ:MSFT), compared to the previous quarter when 306 funds had invested in the stock. Bill & Melinda Gates Foundation Trust is the largest position holder in the firm, with 38.21 million shares worth $14.37 billion.

Carillon Eagle Growth & Income Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) performed well after reporting strong earnings supported by accelerated growth from Azure. The cloud business is seeing consistent trends from optimization while AI has contributed strongly to its growth.”

1. VanEck Semiconductor ETF (NASDAQ:SMH)

5-Year Share Price Performance as of March 15: 308.09%

VanEck Semiconductor ETF (NASDAQ:SMH) is a top choice for a diversified stock portfolio. It aims to closely track the price and yield performance of the MVIS US Listed Semiconductor 25 Index, which represents companies involved in semiconductor production and equipment. Introduced on December 20, 2011, the ETF manages net assets totaling $19.09 billion as of March 15, 2024, with an expense ratio of 0.35%. Its portfolio includes 26 stocks as of March 14, 2024.

NVIDIA Corporation (NASDAQ:NVDA) is the top holding of the VanEck Semiconductor ETF (NASDAQ:SMH). The company offers graphics, compute, and networking solutions worldwide. On February 22, NVIDIA Corporation (NASDAQ:NVDA) declared a $0.04 per share quarterly dividend, in-line with previous. It is to be paid on March 27 to shareholders on record as of March 6.

According to Insider Monkey’s fourth quarter database, 173 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA), compared to 180 funds in the last quarter. Rajiv Jain’s GQG Partners held a significant position in the company, with 13.9 million shares valued at $6.89 billion.

Alger Spectra Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its fourth quarter 2023 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super- computing parallel processing techniques for solving complex computational problems. Simply put, Nvidia’s computational power is a critical enabler of Al and therefore critical to Al adoption, in our view. During the period, shares contributed to performance as Nvidia reported solid fiscal third quarter results well above analyst expectations, driven by strong demand from data centers. Growing Al data center workloads are driving demand for the increased interconnections and fully accelerated software stacks, thereby enabling leading application performance and fast result times.”

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