Buy these fantastic ASX ETFs before everybody else does

These funds could be worth your attention. But why?

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Key points

  • The Betashares Australian Momentum ETF targets around 100 ASX shares with strong price momentum and currently has significant exposure to financials, consumer discretionary, and industrial sectors. It's highlighted for its tactical approach to current market strengths.
  • The Betashares Australian Small Companies Select ETF offers a curated portfolio of small-cap ASX shares, focusing on those with positive earnings, low debt, and reasonable valuations, aiming to maximise returns while mitigating risks.
  • The Vanguard Total Stock Market ETF provides broad exposure to over 4,000 U.S. stocks, from major corporations to smaller growth companies, allowing investors access to a diverse range of sectors and global market leaders.

Wanting to invest but don't like picking stocks? Don't worry, exchange-traded funds (ETFs) are here to save the day.

That's because rather than trying to pick a single winning stock, ETFs give you access to tens or even thousands of stocks in one trade.

But which ASX ETFs could be top options for Aussie investors today? Let's take a look at three picks that could be destined for big things. They are as follows:

Betashares Australian Momentum ETF (ASX: MTUM)

The Betashares Australian Momentum ETF is an ASX ETF to consider buying. It targets around 100 ASX shares with the strongest price momentum.

This fund can tilt towards a variety of sectors depending on market leadership at the time. For example, the Betashares Australian Momentum ETF currently has heavier weightings to financials, consumer discretionary, and industrial. This reflects where strength has been most pronounced on the ASX recently.

Its largest holdings currently include Westpac Banking Corp (ASX: WBC), Brambles Ltd (ASX: BXB), and Wesfarmers Ltd (ASX: WES). It was recently named as one to consider buying by Betashares.

Betashares Australian Small Companies Select ETF (ASX: SMLL)

Another ASX ETF to consider buying is the Betashares Australian Small Companies Select ETF.

It offers investors exposure to a handpicked basket of small cap ASX shares, and aims to capture the upside of small cap investing while avoiding common pitfalls. Its index screens for shares with positive earnings, low debt, and reasonable valuations. The result is a portfolio of 60–90 stocks that is broadly diversified but tilted toward quality.

Top holdings currently include gold miner Perseus Mining Ltd (ASX: PRU), retailer Super Retail Group Ltd (ASX: SUL), and infant formula producer A2 Milk Company Ltd (ASX: A2M).

It was also recently named as one to consider buying by analysts at Betashares.

Vanguard Total Stock Market ETF (ASX: VTS)

Finally, the Vanguard Total Stock Market ETF could be a top pick for investors.

This ASX ETF offers exposure to more than 4,000 U.S. stocks, ranging from giants like Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) to smaller, fast-growing companies. This makes it one of the broadest, most diversified ways to tap into the U.S. market.

It also means that investors get instant access to the largest share market in the world, with companies driving global innovation across technology, healthcare, and consumer sectors.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Super Retail Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Amazon, Apple, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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