There are a lot of exchange-traded funds (ETFs) for investors to choose from on the Australian share market.
Investors are so spoilt for choice it can be hard to decide which ones to buy above others.
So, let's take a look at three ASX ETFs that could be among the best options out there right now. They are as follows:
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Betashares Australian Momentum ETF (ASX: MTUM)
The first ASX ETF that we are going to look at is the Betashares Australian Momentum ETF.
This interesting fund was only recently launched and became the first ETF to provide investors with access to a momentum strategy over Australian shares.
Momentum investing looks for stocks that show a recent trend of outperforming the broad market. It works on the theory that rising asset prices often continue rising, and falling prices tend to continue falling. This approach is supported by economic theory and empirical data.
Betashares recently tipped the ETF as one to buy. It highlights that the index the fund tracks has outperformed the S&P/ASX 200 index by an average of 2.3% per annum since its inception in May 2011 and through to the end of June 2024. And given that this outperformance exists on most time periods, the strategy seems to be working.
BetaShares Diversified All Growth ETF (ASX: DHHF)
The second ASX ETF that we will look at is the BetaShares Diversified All Growth ETF. This fund, which was also recently named as one to buy by BetaShares, allows investors to buy a slice of ~8,000 large, mid, and small cap stocks from Australia, the US, developed markets, and emerging markets.
The fund believes that the fund has high growth potential and may be suitable for investors with a high tolerance for risk.
It has averaged a return of 11% per annum since its inception in December 2020.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
A final ASX ETF for investors to consider is the VanEck Vectors Morningstar Wide Moat ETF.
If you are a fan of Warren Buffett and his style of investing, then it could be a great option. That's because this Buffett-inspired ETF gives investors access to a group of companies that have fair valuations and sustainable competitive advantages or moats.
These are qualities that Buffett will often look for when finding investments for his Berkshire Hathaway (NYSE: BRK.B) business. And much like Buffett, the index this fund tracks has been a market-beater over the past decade.
At present, the fund is invested across ~50 shares including the likes of Adobe, Nike, and Walt Disney.
