One investment option that is growing in popularity is exchange traded funds (ETFs). And it certainly isn’t hard to see why they are so popular with investors. As well as being an easy way to invest your hard-earned money, they provide you with opportunities that were unattainable a decade ago.
But given the many options, it can be difficult to decide which ones to buy ahead of others. To narrow things down, I have picked out three ETFs that are highly rated right now. They are as follows:
iShares S&P 500 ETF (ASX: IVV)
The first ETF for investors to look at is the iShares S&P 500 ETF. It aims to provide investors with the performance of the famous S&P 500 Index, before fees and expenses. BlackRock, which runs the ETF, highlights that the fund gives investors exposure to the top 500 U.S. stocks through a single investment.
It feels this can be used to diversify internationally and seek long-term growth opportunities for a portfolio. Among the companies you’ll be owning a slice of are Amazon, Apple, Berkshire Hathaway, Facebook, JP Morgan, Johnson & Johnson, Microsoft, and Tesla.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
Another ETF to consider is the VanEck Vectors Morningstar Wide Moat ETF. This ETF gives investors exposure to a diversified portfolio of fairly valued companies with sustainable competitive advantages or “moats”. Moats are something that legendary investor Warren Buffett looks for when he identifies his investments. And considering his success, following his lead could be a good idea.
Currently, there are a total of 49 US based stocks in the fund. This includes Amazon, Bank of America, Berkshire Hathaway, Intel, McDonalds, Microsoft, Philip Morris, and Yum Brands.
VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)
A final ETF to consider is the VanEck Vectors Video Gaming and eSports ETF. This fund gives investors access to a portfolio of the largest companies involved in video game development, hardware, and esports. Among the companies included in the fund are giants such as graphics processing units company Nvidia, and game developers Activision Blizzard, Electronic Arts, and Take-Two.
VanEck highlights that these companies are in a position to benefit from the increasing popularity of video games and eSports. In addition to this, it notes that the fund gives investors the opportunity to diversify their portfolio by providing tech options outside the status quo.