If I had $50,000 to invest today and wanted to put the money into exchange-traded funds (ETFs), I would be considering the five funds in this article.
They give investors access to many world-class businesses and companies with strong long-term growth potential.
Here's why I would be seriously considering them this week.
Images source: Getty Images
Vanguard Australian Shares Index ETF (ASX: VAS)
I would start with a core allocation to the Australian market through the Vanguard Australian Shares Index ETF.
It provides exposure to a broad range of Australian shares, from large caps like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA) through to mid and smaller companies like Temple & Webster Ltd (ASX: TPW) and Siteminder Ltd (ASX: SDR).
I like the balance it offers between income and growth, as well as the benefit of franking credits. It is not the most exciting ASX ETF, but I think it is one of the most dependable.
Vanguard S&P 500 US Shares Index ETF (ASX: V500)
Next, I would want meaningful exposure to the United States through the Vanguard S&P 500 US Shares Index ETF.
In my view, it is hard to ignore the long-term strength of the US market.
This ETF gives access to 500 of the largest companies in the world's biggest economy, including global leaders across technology, healthcare, and consumer sectors.
I see this as a key growth driver in the portfolio, and a way to diversify away from Australia's relatively concentrated market.
VanEck MSCI International Quality ETF (ASX: QUAL)
While broad exposure is important, I also like having a tilt toward quality.
That is where the VanEck MSCI International Quality ETF comes in.
This ETF focuses on stocks with strong returns on equity, stable earnings, and low financial leverage. I think that kind of discipline can be particularly valuable during periods of volatility.
For me, this is about increasing the overall quality of the portfolio without having to pick individual global stocks.
Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)
I would also include the Vanguard FTSE Asia Ex-Japan Shares Index ETF.
I believe Asia will play an increasingly important role in global economic growth over the coming decades.
This ETF provides access to a wide range of markets, including China, India, Taiwan, and South Korea. It adds a different set of growth drivers compared to the US and Australia.
It can be more volatile, but over the long term, I think that growth potential is worth having in the portfolio.
BetaShares Global Cybersecurity ETF (ASX: HACK)
Finally, I would add a small allocation with the BetaShares Global Cybersecurity ETF.
Cybersecurity is an area I believe will only become more important over time. As businesses and governments continue to migrate to the cloud, the need to protect data and systems is growing rapidly.
This ASX ETF provides exposure to a range of global cybersecurity companies, offering a more targeted growth opportunity alongside the broader market exposures.
Foolish takeaway
If I were investing $50,000 today, I would focus on ETFs that I could hold for years.
The VAS ETF would provide a strong Australian foundation, the V500 ETF would deliver exposure to the US, the QUAL ETF would add a quality tilt, the VAE ETF would capture Asian growth, and the HACK ETF would bring a thematic edge.
