If you have $500 available to invest in the share market, then you may want to consider the ASX exchange-traded funds (ETFs) in this article.
Let's see why they could be excellent options for investors and what sort of companies they will provide access to in 2025. Here's what you need to know about these popular funds:
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BetaShares Crypto Innovators ETF (ASX: CRYP)
If you are bullish on the future of cryptocurrencies, then the BetaShares Crypto Innovators ETF could be a great way to gain exposure to the industry without having to buy coins. That's because this ASX ETF is designed to capture the full breadth of the crypto ecosystem by investing in pure-play crypto companies (such as cryptocurrency exchanges, crypto mining companies, and mining equipment firms), companies whose balance sheets are held at least 75% in crypto assets, and diversified companies with crypto-focused business lines. Among its ~50 holdings at present are Coinbase, Riot Blockchain and Microstrategy. They stand to benefit greatly if the crypto industry continues to boom.
Betashares Global Cash Flow Kings ETF (ASX: CFLO)
Historically, companies with strong cash flow generation have tended to outperform the market. As a result, it is never a bad idea to find companies of this nature and put them in your portfolio. Making life easier for investors is the Betashares Global Cash Flow Kings ETF, which brings together global companies that demonstrate strong and consistent free cash flow generation, growth of free cash flow, and relatively low levels of debt. Betashares, which recently tipped this fund as a buy, notes that the fund offers diversified exposure to 200 global companies and with similar sector and country weights to broad global equity benchmarks. Among its holdings are giants Alphabet (NASDAQ: GOOG) and Visa (NYSE: V).
BetaShares NASDAQ 100 ETF (ASX: NDQ)
A final ASX ETF to consider for a $500 investment is the BetaShares NASDAQ 100 ETF. This fund aims to track the performance of the Nasdaq-100 Index (before fees and expenses). The Nasdaq-100 is home to 100 of the largest non-financial companies listed on the Nasdaq market, and includes many companies that are at the forefront of the new economy. This includes Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Nvidia (NASDAQ: NVDA). Betashares highlights that its strong focus on technology means that "NDQ provides diversified exposure to a high-growth potential sector that is under-represented in the Australian sharemarket." Over the past 10 years, the index the fund tracks has generated a return of 21.3% per annum.
