Here are 2 high quality ETFs analysts rate as buys

Here are two ETFs to look at this month…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

If you're wanting to invest in some exchange traded funds (ETFs), then the two listed below could be worth considering.

Here's what you need to know about these highly rated ETFs:

ETF spelt out with a rising green arrow.

Image source: Getty Images

ETFS Battery Tech & Lithium ETF (ASX: ACDC)

The ETFS Battery Tech & Lithium ETF could be a top option for investors that are looking to gain exposure to the electrification and decarbonisation trend. That's because this ETF provides investors with exposure to a range of companies involved in battery technology and lithium mining.

This includes the likes of AMG Advanced Metallurgical Group and Lockheed Martin, as well as Australia's own Mineral Resources Limited (ASX: MIN) and Pilbara Minerals Ltd (ASX: PLS). These companies look set to benefit greatly from the shift to clean energy and electric vehicles.

One analyst that is particularly positive on the ETF is Jessica Amir from Saxo Markets. Amir recently told Livewire that she believes this ETF could be a top option for investors that aren't keen on stock-picking but want to gain exposure to the decarbonisation megatrend.

VanEck Vectors MSCI World ex Australia Quality ETF (ASX: QUAL)

The VanEck Vectors MSCI World ex Australia Quality ETF could be another ETF to consider buying this week.

This ETF gives investors access to a basket of high quality shares from across the world but excluding Australia. This means it could be a good option for investors that are already overweight with ASX investments.

But what is high quality? To be selected for the fund, companies need to pass certain criteria. This includes having low leverage, high earnings growth rates, and high returns on equity. Companies that have ticked these boxes and have been included in the fund are Apple, Microsoft, Nike, and Nvidia.

Shaw and Partners' Felicity Thomas is positive on the ETF. She recently told Livewire: "With rising interest rates and the war that's going on in Europe, I actually think it's important to invest in quality companies with high revenue growth and a solid balance sheet, which QUAL provides."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

A man in a full astronaut suit sits forlornly on a set of concrete steps with a sorrowful look on his face beneath his rounded space helmet.
ETFs

Global X announces new space-focused ASX ETF

A new space-themed ETF is set to launch.

Read more »

The letters ETF sit in orange on top of a chart with a magnifying glass held over the top of it.
ETFs

Which ASX ETF should I buy?

There are a number of compelling funds Australians can buy.

Read more »

A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone
ETFs

3 world-class ETFs for Australian investors

Want to invest in the best? These funds could be worth a look.

Read more »

A handful of Australian $100 notes, indicating a cash position
ETFs

How to use the iShares S&P 500 ETF (IVV) to become a millionaire

This investment could be one of the best ways to unlock wealth.

Read more »

Little brother and sister climbing on a ladder together on a tree outdoors.
ETFs

How to invest sustainably and still generate big returns with ASX ETFs

These sustainably focused ASX ETFs are booming.

Read more »

Robot hand and human hand touching the same space on a digital screen, symbolising artificial intelligence.
ETFs

Could this ASX ETF be the best way to invest in the AI boom?

Wanting to invest in AI but not sure where to start? Here is one way you could do it.

Read more »

Man looking at digital holograms of graphs, charts, and data.
ETFs

Want to invest in the future? These technology ETFs are killing it

The boom in artificial intelligence and electric vehicles has driven gains in technology ETFs.

Read more »

A man points at a paper as he holds an alarm clock, indicating the ex-dividend date is approaching.
ETFs

3 amazing ASX ETFs to buy and hold for 10 years

Building wealth over the next decade could be possible with these shares.

Read more »