If you have $5,000 to invest in exchange traded funds (ETFs) this month, then it could be worth checking out the five in this article.
Here's why I think they could be top picks for Aussie investors in January:
Vanguard MSCI International Shares ETF (ASX: VGS)
I would start with the Vanguard MSCI International Shares ETF.
This ASX ETF gives investors exposure to over a thousand companies across developed markets.
But its real value is what it removes. It removes reliance on the Australian economy, local interest rate cycles, and domestic sector concentration. Over long periods, global diversification tends to smooth outcomes.
The Vanguard MSCI International Shares ETF is the ETF I would be happiest owning without checking regularly. It quietly captures global economic growth as it unfolds.
Betashares Nasdaq 100 ETF (ASX: NDQ)
The Betashares Nasdaq 100 ETF is another ASX ETF I would buy with the $5,000.
This ETF concentrates on US tech stock that reinvest heavily, move fast, and shape how people work, communicate, and spend.
Holding the Betashares Nasdaq 100 ETF alongside the Vanguard MSCI International Shares creates an interesting contrast. One is broad and balanced. The other is focused on technological progress.
VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT)
Another ASX ETF to consider buying is the popular VanEck Morningstar Wide Moat ETF.
Instead of guessing which sector will perform best, this ASX ETF looks for businesses that are difficult to disrupt. Strong brands, high switching costs, and entrenched positions are the common thread. These companies often look boring until you realise how consistently they generate cash.
The VanEck Morningstar Wide Moat ETF is the ETF I would rely on when markets become volatile. It is designed to reward investors willing to make patient long-term investments.
Betashares Asia Technology Tigers ETF (ASX: ASIA)
The Betashares Asia Technology Tigers ETF could be a great option for investors this month.
Many of the world's most engaged digital consumers live in Asia, and this ETF targets the platforms they use every day. Payments, gaming, social commerce, and online services dominate the portfolio.
The Betashares Asia Technology Tigers ETF adds a layer of growth that does not depend on US leadership alone. It can be volatile at times, but it reflects where future economic growth is likely to come from.
Betashares Crypto Innovators ETF (ASX: CRYP)
Finally, the Betashares Crypto Innovators ETF is one worth considering if you have a high tolerance for risk and believe that cryptocurrencies are here to stay.
Rather than betting directly on digital assets, it focuses on the businesses building the infrastructure around them. Exchanges, miners, and service providers rise and fall with adoption trends, regulation, and sentiment.
