I think investing in exchange-traded funds (ETFs) might be the best way to go for a lot of people these days due to how simple it is, how low the costs are and how relatively pleasing the returns are. If I had $50,000 to invest in ETFs, this is how I’d do it: BetaShares NASDAQ 100 ETF (ASX: NDQ) – $20,000 The biggest issue facing most ASX investors is that they don’t have enough exposure to technology businesses, except perhaps to the very expensive tech shares on the ASX. The BetaShares NASDAQ 100 ETF gives investors exposure to the biggest…
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I think investing in exchange-traded funds (ETFs) might be the best way to go for a lot of people these days due to how simple it is, how low the costs are and how relatively pleasing the returns are.
If I had $50,000 to invest in ETFs, this is how I’d do it:
BetaShares NASDAQ 100 ETF (ASX: NDQ) – $20,000
The biggest issue facing most ASX investors is that they don’t have enough exposure to technology businesses, except perhaps to the very expensive tech shares on the ASX.
The BetaShares NASDAQ 100 ETF gives investors exposure to the biggest 100 businesses on the NASDAQ, which is predominately home to technology companies like the FAANG shares, although the NASDAQ is attracting more non-tech businesses onto its boards.
It’s good to have large exposure to Microsoft, Amazon, Apple, Alphabet (Google) and Facebook. These are the businesses that are altering our lives the most.
I think this ETF will deliver earnings growth much better than the ASX over the long-term, which should hopefully lead to better returns.
Vanguard FTSE Asia Ex Japan Shares Index ETF (ASX: VAE) – $15,000
Asia is another area that is generating ASX-beating earnings growth. The Asian population is huge and the businesses located there are really beginning to tap into that opportunity, particularly the rapidly-rising Asian middle class.
Banks, insurance, telcos, ecommerce, social media, tourism and so on are all growing. There’s no sign of Alibaba, Tencent, Baidu and so on stopping growing any time soon. Future Indian economic growth could also make this ETF even better to own.
The Vanguard Asia ETF is generating better earnings growth at a cheaper price compared to Western-focused ETFs.
BetaShares Australia 200 ETF (ASX: A200) – $10,000
If you want to invest into the ASX market then the best choice could be with this ETF. Most listed investment companies (LICs) have underperformed the ASX index over the past year and three years.
This ETF has the cheapest management fee cost compared to others, like Vanguard, at 0.07% per annum.
Whilst I wouldn’t want a lot of my money invested in an ASX ETF due to the focus on banks, it could be useful to boost the average yield I’m getting from these ETFs.
BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) – $5,000
The best shares to own are the ones that are changing the world and creating new economic value. The last two decades have been about internet companies. The next two decades could be robotics and AI.
It’s still a relatively new industry, so widespread profit-making and dividends isn’t quite the situation yet, but it could be in time.
Except for the ASX index, I think all of the above ETFs can beat the ASX returns over the next decade.
But, if you want more than just ETFs in your portfolio then these are some great individual ASX growth shares you could buy.
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Motley Fool contributor Tristan Harrison owns shares of VANGUARD FTSE ASIA EX JAPAN SHARES INDEX ETF. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. 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.