If you want to make some new buy and hold additions to your portfolio this year but aren't keen on stock picking, then exchange traded funds (ETFs) could be the answer.
They allow you to buy large groups of shares with a single click of the button.
But which ASX ETFs could be quality options for investors looking for long term picks?
Let's take a look at four quality options:
Image source: Getty Images
BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)
The first ASX ETF to buy and hold could be BetaShares S&P/ASX Australian Technology ETF It was recently named as one to buy by the team at Betashares.
The fund manager highlights that it provides investors exposure to a side of the market that is likely to outperform over the next decade.
It 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."
Betashares Global Quality Leaders ETF (ASX: QLTY)
Another ASX ETF that could be a top buy and hold option is the Betashares Global Quality Leaders ETF.
It is never a bad idea to invest in the highest quality stocks that the world has to offer. And that is exactly what this fund allows investors to do with ease. It was recommended as an ASX ETF to buy by Betashares last year.
The Betashares Global Quality Leaders ETF is focused on investing in approximately 150 high quality companies. These companies rank highly on four key metrics: return on equity, debt-to-capital, cash flow generation, and earnings stability. Historically, companies ranking highly on these metrics have a tendency to outperform.
Betashares Australian Momentum ETF (ASX: MTUM)
A third ASX ETF that could be a great buy and hold option for investors is the Betashares Australian Momentum ETF.
It provides investors with access to a momentum strategy over Australian shares. Betashares recently tipped it as a buy.
The fund manager notes that momentum investing aims to identify stocks that show a recent trend of outperforming the broad market. It is an approach based on the theory that rising asset prices tend to continue rising, and falling prices tend to continue falling. The index the fund tracks has outperformed the S&P/ASX 200 index since inception in May 2011.
iShares S&P 500 ETF (ASX: IVV)
A final ASX ETF for investors to look at for the long term is the iShares S&P 500 ETF.
As its name implies, this fund gives investors access to 500 of the largest companies on Wall Street. This means that you will be buying a slice of a diverse group of shares from a range of different sectors.
At present, this includes world class companies and household names such as Apple, Microsoft, and Nvidia. It could be a great way to gain exposure to the US economy if you are bullish on its long term outlook.
