If you're looking for exchange traded funds (ETFs) to buy, then the two listed below could be top options.
Here's why analysts say these ETFs could be in the buy zone now:
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ETFS Battery Tech & Lithium ETF (ASX: ACDC)
The first ETF that has been rated as a buy recently is the ETFS Battery Tech & Lithium ETF.
This ETF gives investors exposure to the electrification and decarbonisation trend through a range of companies involved in battery technology and lithium mining. This includes BYD, Mineral Resources Limited (ASX: MIN), Nissan, Pilbara Minerals Ltd (ASX: PLS), and Renault.
One analyst that is positive on the ETF is Jessica Amir from Saxo Markets. She recently said:
If [lithium] stock picking is not for you, and if you believe, like we do, that the electric vehicle industry and the critical minerals/ commodities will continue to see rising demand, and policy support, and also benefit from the world striving to be carbon neutral by 2050, then you could invest or trade in Global X Lithium & Battery Tech ETF (LIT) or ETFS Battery Tech & Lithium ETF (ACDC) that invests in about 30 of the biggest EV and battery technology companies in the world.
VanEck Vectors MSCI World ex Australia Quality ETF (ASX: QUAL)
Another ETF that has been rated as a buy for investors is the VanEck Vectors MSCI World ex Australia Quality ETF.
This ETF provides investors with access to a portfolio of high quality shares outside Australia. These are companies with low leverage, high growth rates, and high returns on equity such as Apple, Microsoft, Nike, and Nvidia.
Sarah Gonzales from Apt Wealth is a fan of the ETF. This is due to its focus on quality, which tends to perform better during market downturns. She recently told Livewire:
My preferred ETF is the VanEck MSCI International Quality ETF. I think it provides exposure to that quality factor, which tends to outperform in market downturns. It does focus on factors like return and equity, year-on-year growth of earnings and also levels of debt. These are proxies for profitability, earnings variability, and the level of debt of companies. Particularly if we are going into a recession, I think these are really the factors that I think we should focus on.
