Are you looking for some exchange traded funds (ETFs) to buy in May?
If you are, then it could be worth checking out the two listed below that are highly rated by Betashares' chief economist, David Bassanese.
Here's what the chief economist is saying about these ASX ETFs:
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Global Healthcare ETF – Currency Hedged (ASX: DRUG)
The first ASX ETF that could be a buy is the Global Healthcare ETF.
This ETF gives investors easy access to the largest global healthcare companies, hedged into Australian dollars.
Bassanese notes that the companies included in the fund, which are are predominantly pharmaceutical companies, have defensive qualities and can typically pass rising costs on to consumers. This provides investors with some level of inflation protection.
Among its holdings are healthcare stocks including Astra Zeneca, Johnson & Johnson, Merck & Co, and Pfizer.
Betashares Global Quality Leaders ETF (ASX: QLTY)
Another ASX ETF for investors to look at is the Betashares Global Quality Leaders ETF.
This ETF offers investors exposure to a portfolio of approximately 150 high-quality global companies (excluding Australia).
The fund has strict entry requirements for its holdings. For example, to be included in the ETF, a company needs to rank highly on four key metrics. These are return on equity, debt-to-capital, cash flow generation ability, and earnings stability.
These are all qualities that are attractive in any market, but particularly in the current uncertain economic environment. This helps explain why the Betashares Global Quality Leaders ETF has risen approximately 12% since the start of the year. This is more than triple the 3.3% gain recorded by the ASX 200 index over the same period.
The ETF currently includes companies such as Alphabet, L'Oreal, Microsoft, Nvidia, and Visa.
