If you’re not comfortable picking individual shares to invest in or you’d like to invest in a particular theme, then ETFs could be a good option for you.
This is because through just a single investment, they allow investors to invest in a collection of shares.
Three ETFs that I feel are good options for investors right now are listed below. Here’s why I like them:
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
This ETF provides investors with exposure to the 50 largest technology and online retail companies that have their main area of business in Asia (excluding Japan). These companies include the likes of Alibaba, Tencent, Baidu and JD.com. According to BetaShares, these are “companies that are revolutionising the lives of billions of people in the Asian region.” Whilst the trade war is a concern, I’m optimistic that this is just a short term issue and their long-term growth prospects remain exceptionally strong.
iShares S&P 500 ETF (ASX: IVV)
Another option for investors to consider is the iShares S&P 500 ETF. As its name implies, this ETF provides investors with exposure to Wall Street’s S&P 500 index. This is arguably the most famous index and is home to many of the largest companies in the world. This includes the likes of Amazon, Apple, Starbucks, and Warren Buffett’s Berkshire Hathaway. Another potential positive is that the ETF is not currency hedged. So if the Australian dollar continues to weaken, the value of your investment will appreciate. Given the outlook for rates in Australia, I suspect this is a real possibility.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
If you’re looking for a source of income in this low interest environment, then I think the Vanguard Australian Shares High Yield ETF could be a good option. This ETF gives investors access to 60 of the highest paying dividend shares on the local share market. This includes the likes of mining giant BHP Group Ltd (ASX: BHP), telco company Telstra Corporation Ltd (ASX: TLS), conglomerate Wesfarmers Ltd (ASX: WES), and of course the big four banks. The ETF provides investors with a forecast forward 5.3% dividend yield at present.
Finally, I would suggest you consider teaming up these ETFs with one of these highly rated shares that a leading analyst has slapped a buy rating on.
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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 BetaShares Asia Technology Tigers ETF, Telstra Limited, and Wesfarmers Limited. 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.