I think exchange traded funds (ETFs) can be great additions to a balanced portfolio.
This is because they give investors easy access to a large and diverse number of different shares through just a single investment.
There are a lot of ETFs for investors to choose from, so which should you buy? Three of the best in my opinion are listed below. Here’s why I like them:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
My favourite ETF continues to be the BetaShares NASDAQ 100 ETF. It gives investors exposure to 100 of the largest non-financial companies on the famous Nasdaq index. This includes some of the biggest and most iconic companies in the world. Among its holdings are the likes of Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla. Given the quality of these companies and their very positive outlooks, I believe the Nasdaq 100 ETF can generate strong returns for investors over the next decade.
VanEck Vectors Australian Banks ETF (ASX: MVB)
If you’re looking to take advantage of the recent pullback in bank shares, then you might want to take a look at the VanEck Vectors Australian Banks ETF. I think this ETF would be a great way to gain exposure to the banking sector as it gives investors a piece of all the big four banks, the regionals, and even investment bank Macquarie Group Ltd (ASX: MQG) through a single investment. This is especially helpful if you’re not sure which bank to buy ahead of others.
VanEck Vectors China New Economy ETF (ASX: CNEW)
A final ETF to consider buying is the VanEck Vectors China New Economy ETF. It gives investors access to China through a portfolio of exciting companies which are in sectors making up “the New Economy.” This includes the technology, health care, consumer staples, and consumer discretionary sectors. The VanEck Vectors China New Economy ETF is invested in 120 companies, which it believes represent growth at a reasonable price.