If you lack the finances to invest across a large number of different shares, then exchange traded funds (ETFs) could be just what you need.
ETFs allow you to invest in a particular theme, index, or industry through just a single investment.
There are a growing number of ETFs out there for investors to choose from, but three of my favourites are listed below. Here’s why I like them:
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
The BetaShares Asia Technology Tigers ETF tracks the performance of an index that provides access to the 50 largest technology and online retail companies that have their main area of business in Asia (excluding Japan). Due to its younger, tech-savvy population, BetaShares notes that Asia is surpassing the West in respect to technological adoption. As a result, the Asian technology sector is expected to remain a growth sector for some time to come. Amongst its biggest holdings you’ll find the likes of Alibaba, Baidu, JD.com, and Tencent.
BetaShares NASDAQ 100 ETF (ASX: NDQ)
The BetaShares NASDAQ 100 ETF gives investors exposure to the 100 largest businesses on the technology-focused NASDAQ index. This means investors will be buying a slice of major tech giants such as Amazon, Apple, Alphabet, Facebook, and Microsoft. Given the increasingly positive long-term growth outlook that many Nasdaq constituents have, I believe this ETF could provide investors with strong returns over the next decade.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
Another ETF to consider this month is the Vanguard MSCI Index International Shares ETF. As its name implies, this ETF provides investors with low-cost exposure to many of the world’s leading companies. The advantage of this is that it allows investors to participate in the long-term growth potential of the global economy, rather than just the ANZ market. Amongst its top holdings you will find Amazon, Microsoft, Nestle, and Visa.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS and BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.