If you’re not keen on picking individual shares to invest in, then ETFs could be perfect for you.
They provide investors with the ability to invest in a collection of shares through just a single investment.
Three ETFs that I feel are good options for investors right now are listed below. Here’s why I like them:
VanEck Vectors Australian Banks ETF (ASX: MVB)
Deciding which of the big four banks to invest in over the others can be difficult. The good news is the VanEck Vectors Australian Banks ETF solves that problem by allowing you to invest in all the big four. The ETF also provides exposure to the regional banks and Macquarie Group Ltd (ASX: MQG). Another positive is that its units currently provide a 5.4% partially franked dividend yield.
VanEck Vectors Wide Moat ETF (ASX: MOAT)
The VanEck Vectors Wide Moat ETF gives investors exposure to high-quality US-listed companies which have competitive advantages, or “moats”. A wide range of shares are included in the ETF such as Kellogg Company, Medtronic, Intel, and Wells Fargo. History shows that investing in companies with moats has been a successful strategy, so this ETF certainly ticks a lot of boxes. So far, the ETF is living up to expectations. It has generated a return of 17.5% per annum over the last five years.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
The Vanguard MSCI Index International Shares ETF provides investors with exposure to many of the world’s largest companies listed in major developed countries. It also offers investors low-cost access to a diversified range of shares. Ultimately, this allows investors to participate in the long-term growth potential of international economies outside Australia. Amongst its biggest holdings you will find Apple, Microsoft, Amazon, 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 has recommended VanEck Vectors Morningstar Wide Moat ETF and 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.