If you are fortunate enough to have $1,000 to invest in the share market, but don't know where to put it, then it could be worth considering an ASX exchange traded fund (ETF).
But with so many to choose from, it can be hard to decide which ones to buy.
Don't worry, I will now narrow things down by picking out three that could be best buys as the month of May approaches rapidly.
Here's why they could be worth considering for a $1,000 investment:
Image source: Getty Images
BetaShares Nasdaq 100 ETF (ASX: NDQ)
The first ASX ETF to consider is the BetaShares Nasdaq 100 ETF.
This ETF provides exposure to 100 of the largest non-financial companies listed on the Nasdaq exchange. It is heavily weighted towards technology and growth-oriented businesses.
Its holdings include companies such as Apple (NASDAQ: AAPL), Netflix (NASDAQ: NFLX), Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), and NVIDIA (NASDAQ: NVDA).
Demand for AI, cloud computing, and digital services continues to support growth across this group of companies. This could make the BetaShares Nasdaq 100 ETF a strong performer over the next decade and beyond.
iShares S&P 500 ETF (ASX: IVV)
Another ASX ETF to consider is the iShares S&P 500 ETF.
This ETF tracks the performance of the S&P 500 Index, giving investors access to 500 large-cap US stocks.
Its holdings include companies such as Apple, Microsoft, Amazon, Walmart (NYSE: WMT), and McDonald's (NYSE: MCD).
This means that the iShares S&P 500 ETF provides broad exposure to the US economy, which remains the largest and most influential market globally. It also offers diversification across sectors and tends to be less concentrated than more thematic ETFs.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
A third ASX ETF to consider is the VanEck Morningstar Wide Moat ETF.
This ETF focuses on companies that are judged to have sustainable competitive advantages, often referred to as economic moats.
Its holdings include companies such as Alphabet (NASDAQ: GOOGL), Visa (NYSE: V), and Airbnb (NASDAQ: ABNB). Visa stands out due to its global payments network, which benefits from high margins and strong network effects.
In addition, the VanEck Morningstar Wide Moat ETF incorporates a valuation overlay, selecting companies that are not only high quality but also trading at what is considered an attractive price.
This combination of quality and valuation offers a different approach compared to traditional index tracking ETFs.
