Do you have $5,000 available to invest? If you do, then you may want to consider the ASX exchange-traded funds (ETFs) in this article.
They are all excellent options and provide investors with access to groups of high-quality stocks. Here's what you need to know about them:
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Betashares Global Quality Leaders ETF (ASX: QLTY)
The first ASX ETF for investors to look at is the Betashares Global Quality Leaders ETF. This fund, which was recommended by Betashares, gives investors exposure to the highest quality companies that the world has to offer. At present, there are approximately 150 companies included in the fund. These companies rank highly on four key metrics: return on equity, debt-to-capital, cash flow generation, and earnings stability.
BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)
Another ASX ETF that was recommended by Betashares is the BetaShares S&P/ASX Australian Technology ETF. It provides investors with access to the leading ASX-listed companies in a range of tech-related market segments. This includes information technology, consumer electronics, online retail and medical technology. The fund manager said: "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. Despite Australia's sharemarket skewing heavily towards financials and resources, investors can gain direct exposure to Aussie tech stocks via ATEC."
iShares Global Consumer Staples ETF (ASX: IXI)
A third ASX ETF to look at for a $5,000 investment is the iShares Global Consumer Staples ETF. It could be a good option for investors with a low tolerance for risk. That's because it provides investors with access to many of the world's largest consumer staples companies. These types of companies are generally regarded as low risk options and companies that perform well whatever is happening in the global economy. Among the fund's holdings are global giant Coca-Cola, Nestle, and Procter & Gamble. (NYSE: KO) (NYSE: PG).
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
A final ASX ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. This fund is focused on buying companies that have sustainable competitive advantages (wide moats) and fair valuations. This is what legendary investor Warren Buffett looks for when making investments for Berkshire Hathaway (NYSE: BRK.B) business. And given his long-term track record, the strategy clearly works. The companies held by the fund will change periodically to reflect changes to valuations and competitive advantages. But at present, this includes food company Campbell Soup (NYSE: CPB), entertainment giant Walt Disney Co. (NYSE: DIS), and beauty products company Estee Lauder (NYSE: EL).
