Exchange-traded funds (ETFs) are one of the simplest ways to build a diversified portfolio without needing to pick individual shares.
With just a few trades, investors can gain exposure to hundreds of companies across different sectors, countries, and investment themes.
If you have $2,500 to put to work this month, here are five ASX ETFs that could be worth a closer look.
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Vanguard Australian Shares Index ETF (ASX: VAS)
The Vanguard Australian Shares Index ETF provides investors with exposure to the largest stocks on the ASX, tracking the S&P/ASX 300 Index. It is a core holding for many investors thanks to its broad diversification and low fees. With top holdings like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Ltd (ASX: CSL), and Woolworths Group Ltd (ASX: WOW), it offers an instant slice of the Australian economy.
iShares S&P 500 ETF (ASX: IVV)
Another ASX ETF to look at is the iShares S&P 500 ETF. It tracks the S&P 500 index, giving investors access to 500 of the largest stocks on Wall Street. Its portfolio features some of the world's biggest names, including Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN). For investors wanting to tap into US innovation and economic growth, the iShares S&P 500 ETF is a straightforward option.
Betashares Asia Technology Tigers ETF (ASX: ASIA)
A third ASX ETF to consider for that $2,500 investment is the Betashares Asia Technology Tigers ETF. It holds 50 of the best tech stocks in Asia, including Taiwan Semiconductor Manufacturing (NYSE: TSM), PDD Holdings (NASDAQ: PDD), Alibaba (NYSE: BABA), and Tencent Holdings (SEHK: 700). Given the fund's exposure to a region experiencing rapid growth in e-commerce, AI, and digital services, it could be a high-growth addition to a portfolio.
BetaShares Global Cybersecurity ETF (ASX: HACK)
Another high-growth option to consider is the BetaShares Global Cybersecurity ETF. It invests in stocks that are providing cybersecurity solutions worldwide, such as Palo Alto Networks (NASDAQ: PANW), CrowdStrike (NASDAQ: CRWD), and Fortinet (NASDAQ: FTNT). As cyber threats continue to rise, so too does demand for security solutions. As a result, this is creating a very positive long-term outlook for the industry.
BetaShares Global Quality Leaders ETF (ASX: QLTY)
Finally, the BetaShares Global Quality Leaders ETF could be an ASX ETF to consider with the $2,500. It focuses on high-quality global stocks with strong returns on equity, low debt, and stable earnings. Current holdings include ResMed Inc (ASX: RMD), Mastercard (NYSE: MA), and Procter & Gamble (NYSE: PG). This focus on quality can help deliver better risk-adjusted returns over the long term. It is for that reason that Betashares recently named it as one to consider buying.
