With the ASX sitting near record highs and investor sentiment improving, many Australians are asking the same question: where should I put my money now?
For those with $10,000 to invest and a disdain for stock-picking, exchange-traded funds (ETFs) could be the answer.
They offer instant diversification, access to entire sectors or themes, and the ability to compound returns over time without the stress of picking individual stocks.
But which ASX ETFs could be worth considering? Let's take a look at three that could be worth considering in October:
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Betashares Global Defence ETF (ASX: ARMR)
The first ASX ETF to look at is the Betashares Global Defence ETF. It gives investors exposure to some of the world's leading defence, aerospace, and cybersecurity stocks. These businesses are benefiting from rising global defence spending as nations strengthen their capabilities amid ongoing geopolitical tensions.
The fund's holdings include global defence giants such as Lockheed Martin (NYSE: LMT), Northrop Grumman (NYSE: NOC), and RTX Corporation (NYSE: RTX). These are all key suppliers of advanced defence systems and technology to the United States and allied nations.
Defence has historically been a resilient sector, often performing well even during periods of market volatility. With governments prioritising security and military modernisation in a more uncertain world, demand for high-end defence solutions is expected to keep growing. It is no wonder then that analysts at Betashares recently recommended the fund.
Betashares S&P/ASX Australian Technology ETF (ASX: ATEC)
Another ASX ETF that could be a good option for the $10,000 is the BetaShares Australian Technology ETF.
This popular fund provides exposure to some of the country's fastest growing and most innovative tech stocks. It includes many of the names driving Australia's digital transformation, such as WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), and NextDC Ltd (ASX: NXT).
WiseTech continues to dominate global logistics software, Xero remains a leader in cloud-based accounting, and NextDC is capitalising on the surging demand for data storage and artificial intelligence.
Overall, by investing in the BetaShares S&P/ASX Australian Technology ETF, you gain exposure to Australian innovators that could deliver outsized returns as digitalisation and automation reshape the economy over the next decade. It was also recently recommended by the team at Betashares.
Betashares Australian Small Companies Select ETF (ASX: SMLL)
Finally, the Betashares Australian Small Companies Select ETF could be a top option.
It tracks the Nasdaq Australia Small Cap Select Index, which screens for small-cap shares with positive earnings, strong debt servicing ability, and solid valuations. This helps avoid the riskier, speculative stocks and instead focuses on quality growth names.
The fund generally holds between 60 and 90 stocks, allowing investors to benefit from the growth potential of Australia's next generation of corporate leaders. It is another fund that Betashares recently picked out as one to consider.
