I think exchange traded funds (ETFs) can be great additions to a balanced portfolio.
This is because they allow you to invest across a large and diverse number of shares through just a single investment.
But which ETFs should you buy today? Three of the best ETFs in my opinion are listed below. Here’s why I would buy them:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
My favourite ETF is the BetaShares NASDAQ 100 ETF. This ETF gives investors access to 100 of the biggest non-financial companies on the legendary Nasdaq index. These means investors will be getting a slice of a large number of tech giants such as Apple, Microsoft, and Netflix. Due to the positive outlooks of the majority of the companies in the ETF, I believe it can generate strong returns for investors over the next decade. Another positive is a recent pullback following a tech selloff on Wall Street. This gives investors an opportunity to buy in at a more attractive price.
BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)
Another option for investors to consider buying is the BetaShares S&P/ASX Australian Technology ETF. It is the Australian equivalent of the BetaShares NASDAQ 100 ETF and a great option if you don’t already have exposure to the tech sector. Included in the fund are the likes of Afterpay Ltd (ASX: APT), Appen Ltd (ASX: APX), and Xero Limited (ASX: XRO). I believe this ETF has the potential to outperform the broader ASX 200 index by a decent margin over the long term.
iShares Global Healthcare ETF (ASX: IXJ)
A final option to consider is the iShares Global Healthcare ETF. This exchange traded fund gives investors a piece of some of the largest healthcare companies across the world. This includes giants such as CSL Ltd (ASX: CSL), Johnson & Johnson, Novartis, and Pfizer. Given the expected increase in demand for healthcare services over the next few decades, I believe it is a great place to invest with a long term view.
Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS, CSL Ltd., and Xero. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia 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.
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