If you are lucky enough to have $10,000 to invest in the share market this month and don't like picking stocks, then exchange traded funds (ETFs) could be worth considering.
But which funds could be top picks for investors in January? Let's take a look at three that stand out for good reason. Here's what you need to know about them:
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Betashares Cloud Computing ETF (ASX: CLDD)
The first ASX ETF for investors to look at is the Betashares Cloud Computing ETF. It offers targeted exposure to one of the most important technology shifts of our time.
Cloud infrastructure and software underpin everything from remote work and ecommerce to artificial intelligence and cybersecurity, and that reliance is only increasing.
The fund holds a range of global cloud leaders, including Microsoft (NASDAQ: MSFT), ServiceNow (NYSE: NOW), Shopify (NASDAQ: SHOP), Salesforce (NYSE: CRM), and Snowflake (NYSE: SNOW). These companies sit at the core of enterprise digital transformation, generating largely recurring revenue from mission-critical services.
Cloud adoption is still expanding globally, and even though tech stocks can be volatile, the underlying demand for cloud services is structural rather than cyclical. This bodes well for the future.
Betashares recently recommended the fund to investors.
VanEck MSCI International Value ETF (ASX: VLUE)
While growth gets most of the headlines, value investing tends to shine over full market cycles.
The VanEck MSCI International Value ETF provides investors with exposure to developed-market stocks that are trading at attractive valuations based on fundamentals such as earnings and cash flow.
At present, this ASX ETF's portfolio includes well-known global names such as Cisco Systems (NASDAQ: CSCO), Micron Technology (NASDAQ: MU), and Western Digital (NASDAQ: WDC). It is also less concentrated in mega-cap US tech than many global indices, which can help diversify portfolio risk.
Overall, the VanEck MSCI International Value ETF could be a useful counterbalance to growth-focused ETFs. It provides exposure to businesses that are profitable, established, and often overlooked when markets become fixated on the latest trend. VanEck recently recommended the fund.
VanEck China New Economy ETF (ASX: CNEW)
Lastly, the VanEck China New Economy ETF could be worth a look.
While it is not for the faint-hearted, it offers exposure to an area with enormous long-term potential. Rather than focusing on China's old-economy giants, this ASX ETF targets stocks aligned with the country's evolving consumer, healthcare, and technology sectors.
The fund holds a diversified portfolio of 120 China A-share stocks that are operating in areas such as advanced manufacturing, healthcare, and consumer services. These are businesses benefiting from rising incomes, urbanisation, and domestic consumption trends. This fund was also recommended by VanEck.
