There are plenty of exchange-traded funds (ETFs) in Australia that are focused on the ASX.
One of the most popular ASX ETFs is Vanguard Australian Share ETF (ASX: VAS) which focuses on the ASX 300, but my preferred option is the BetaShares Australia 200 ETF (ASX: A200).
The BetaShares Australia 200 ETF, as the name might suggest, seeks to track the ASX 200. There's not much of a difference between the two ETFs, but there are two that influence my choice.
Both ETFs provide exposure to the biggest ASX shares like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and CSL Limited (ASX: CSL). But because you're missing out of the bottom 100 of the ASX 300, you get more exposure to the blue chips.
If you're investing in one of these ETFs you are essentially deciding to own Australia's biggest blue chips, so you may as well get more exposure to them rather than less.
The other noticeable difference is that the ETF has a slightly lower management fee. BetaShares Australia 200 ETF's annual management fee is 0.07% compared to Vanguard Australia's management fee of 0.10% per annum. Realistically, 0.03% per annum is not much of a difference at all, but if the returns are identical then you may as well pick the one that would give slightly better net returns.
Other attractive features of BetaShares Australia 200 ETF generally is that it provides decent diversification, although not as much as something like Vanguard MSCI Index International Shares ETF (ASX: VGS), and it has quite a high dividend yield for an ETF.
Foolish takeaway
If you want to invest in ASX businesses then the best way to do it could be with BetaShares Australia 200 ETF combined with ETFs that are focused on global shares.
