Due to their growing popularity, there are more and more exchange-traded funds (ETFs) to choose from on the Australian share market.
But which ones could be among the best to buy right now? Let's take a look at three that could be worth a closer look:
Betashares Australian Momentum ETF (ASX: MTUM)
The first ASX ETF to consider is the Betashares Australian Momentum ETF. It is a newly launched fund and the first ETF to provide investors with access to a momentum strategy over Australian shares.
The fund manager notes that momentum investing aims to identify stocks that show a recent trend of outperforming the broad market, and is an approach supported by economic theory and empirical data.
Instead of aiming to profit from underlying company fundamentals, this type of investing is based on the theory that rising asset prices tend to continue rising, and falling prices tend to continue falling.
This approach appears to work. The index that the fund tracks has outperformed the S&P/ASX 200 index by 2.3% per annum since inception in May 2011 and through to the end of June 2024, as well as outperforming the benchmark over most time periods. No wonder the fund manager is tipping it as a buy right now.
BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)
Another ASX ETF that the fund manager rates as a buy is the BetaShares S&P/ASX Australian Technology ETF.
It gives investors easy access to the leading Australian companies in a range of tech-related market segments.
BetaShares recently commented that "with the nascent adoption of AI, cloud computing, big data, automation, and the internet of things, there's a good chance that the next decade's major winners will come from the tech sector." This could make the ATEC ETF a great long term option for investors.
BetaShares NASDAQ 100 ETF (ASX: NDQ)
Finally, no best ETFs list would be complete without mentioning the BetaShares NASDAQ 100 ETF.
It is a hugely popular ETF that allows investors to buy a slice of the 100 largest non-financial shares on the famous NASDAQ index.
These are many of the largest companies in the world and household names. This includes Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Tesla (NASDAQ: TSLA), and Nvidia (NASDAQ: NVDA).
And given how bright the long term outlooks of these (and the remaining 96 stocks) are, this ETF appears well-positioned to continue delivering strong returns to investors over the next decade and beyond.
