Do you have $1,000 burning a hole in your pocket? If you do, it could be worth putting it into the work in the share market.
Doing so could turn this money into significantly more in the future if you invest it wisely.
But where could you invest it right now? Let's skip standard shares for now and look at a few exchange-traded funds (ETFs) that could be great options for your funds. They are as follows:
Betashares Australian Momentum ETF (ASX: MTUM)
The first ASX ETF to to consider for a $1,000 investment is the Betashares Australian Momentum ETF. It was recently tipped as a buy for growth investors.
The fund manager highlights that the Betashares Australian Momentum ETF is the first ETF to provide investors with a momentum strategy over Australian shares.
This could be a good thing, with Betashares noting 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 over 13 years ago. And, importantly, through to the end of June 2024, this outperformance exists on most time periods. This appears to demonstrate that the strategy isn't a fluke.
But what is the strategy? Betashares explains that 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. Betashares highlights that the approach is supported by economic theory and empirical data.
BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)
Another ASX ETF to consider for a $1,000 investment is the BetaShares S&P/ASX Australian Technology ETF. It has also recently been tipped as a buy by the fund manager.
As you might have guessed from its name, the BetaShares S&P/ASX Australian Technology ETF is invested in the best tech stocks on the Australian share market. This includes companies from a range of tech-related market segments such as information technology, consumer electronics, online retail, and medical technology.
BetaShares believes that the "the nascent adoption of AI, cloud computing, big data, automation, and the internet of things" means that there is a "good chance that the next decade's major winners will come from the tech sector."
Among its holdings are health imaging technology provider Pro Medicus Limited (ASX: PME), logistics solutions company WiseTech Global Ltd (ASX: WTC), and cloud accounting platform provider Xero Ltd (ASX: XRO).
BetaShares Crypto Innovators ETF (ASX: CRYP)
A third and final ASX ETF to look at for a $1,000 investment is the BetaShares Crypto Innovators ETF.
This is clearly a high risk option for investors as it provides easy access to the whole crypto ecosystem. However, rather than investing in coins, it invests in the companies that stand to benefit from a burgeoning crypto market. This includes pure-play crypto companies, those whose balance sheets are held at least 75% in crypto-assets, and diversified companies with crypto-focused business operations.
It could be a good option for investors that believe the crypto market is the future. For those that think it is a fad, stay well clear.
