If you're looking to invest in a diversified portfolio of high-quality companies without picking individual stocks, exchange-traded funds (ETFs) could be the answer.
With just one investment, ASX ETFs allow you to gain exposure to a broad range of shares across various sectors and regions.
With that in mind, listed below are five funds that could be great options to buy with $5,000 today. They are as follows:
iShares S&P 500 ETF (ASX: IVV)
A solid option for investors seeking exposure to the U.S. market is the iShares S&P 500 ETF. This popular ASX ETF tracks the S&P 500 Index, which is home to 500 of the largest and most influential companies in the United States. This includes Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN).
Over the long term, the U.S. market has delivered strong returns, and this ETF provides a simple and cost-effective way to gain access to those gains.
BetaShares Global Cybersecurity ETF (ASX: HACK)
For those interested in thematic investing, the BetaShares Global Cybersecurity ETF could be a great option. This ETF provides exposure to a portfolio of leading cybersecurity companies such as Palo Alto Networks (NASDAQ: PANW) and CrowdStrike (NASDAQ: CRWD).
With cyber threats on the rise and businesses increasingly prioritising digital security, demand for cybersecurity solutions is expected to grow significantly in the coming years. The BetaShares Global Cybersecurity ETF allows investors to tap into this high-growth industry while benefiting from a globally diversified portfolio of cybersecurity leaders.
BetaShares Nasdaq 100 ETF (ASX: NDQ)
Another great way to invest in the U.S. market is through the BetaShares Nasdaq 100 ETF. This ASX ETF tracks the Nasdaq 100 Index, which is home to major technology-focused companies like Nvidia (NASDAQ: NVDA), Alphabet (NASDAQ: GOOG), and Tesla (NASDAQ: TSLA).
Given the strong performance of tech stocks in recent years and their very positive long-term growth potential, the BetaShares Nasdaq 100 ETF could be an excellent choice for investors looking to gain exposure to the world's most innovative companies.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
For investors who prefer companies with strong competitive advantages, the VanEck Morningstar Wide Moat ETF is worth considering. This ASX ETF invests in U.S. companies that are judged to have a wide moat – a sustainable competitive edge that protects them from competitors.
This approach has historically delivered solid returns by focusing on quality businesses with strong profitability and durable advantages. Key holdings include companies like Gilead Sciences (NASDAQ: GILD), Walt Disney (NYSE: DIS) and Boeing (NYSE: BA).
BetaShares Australian Quality ETF (ASX: AQLT)
The final ASX ETF to consider is the BetaShares Australian Quality ETF, which has been recently tipped as a top pick by the BetaShares team.
BetaShares Australian Quality ETF provides exposure to a portfolio of high-quality Australian companies that have strong balance sheets, consistent earnings growth, and high return on equity.
Investing in quality businesses has historically been a winning strategy over the long term, and this fund offers a simple way to gain exposure to some of Australia's best companies while maintaining diversification.
