There are a lot of exchange traded funds (ETFs) for investors to choose from on the Australian share market.
To narrow things down, let's take a look at three funds that could be top picks for investors with $5,000 to put into the market.
Let's what they provide exposure to and why they could be top picks for investors right now:
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Betashares Asia Technology Tigers ETF (ASX: ASIA)
The first ASX ETF to look at is the Betashares Asia Technology Tigers ETF. It offers easy exposure to some of the fastest-growing digital economies in the world. This fund targets Asia's tech tigers like Tencent and Alibaba, but also growing players like Meituan and Temu owner PDD Holdings.
For investors that want to capture the rising middle class and growing digital consumption across the region, the Betashares Asia Technology Tigers ETF offers a simple way to do so.
iShares S&P 500 ETF (ASX: IVV)
Next up is the iShares S&P 500 ETF. It allows investors to tap into the U.S. economy by owning a slice of 500 of the country's largest companies. This means mega-cap tech giants like Apple and Microsoft but also some of the most durable and globally recognised consumer and financial brands like Citigroup, Coca-Cola, Johnson & Johnson, McDonald's, Starbucks, and Walmart.
These are businesses with enormous scale, global reach, and the kind of consistent profitability that has powered the U.S. market for decades. They are also the sort of companies that can quietly compound wealth year after year. This could make the iShares S&P 500 ETF a great addition to a portfolio.
Vanguard Australian Shares Index ETF (ASX: VAS)
Finally, the Vanguard Australian Shares Index ETF could be a great pick for investors with $5,000 to put to work in the share market. This ASX ETF tracks the top 300 shares listed on the ASX and gives investors broad-based exposure to Australia's largest and most stable businesses.
While names like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) often get most of the attention, the Vanguard Australian Shares Index ETF also holds a wide range of quality companies from a range of sectors. This includes industrials, retailers, and utilities that provide a solid base of dividend income and defensive characteristics.
Overall, the Vanguard Australian Shares Index ETF could be a great complement to the other ETFs and help strengthen a portfolio with exposure to the local economy.
