Where to invest $10,000 in ASX ETFs in May

These funds could be smart buys. Let's see what they offer.

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If you have $10,000 to invest in May, ASX exchange traded funds (ETFs) can make it easy to access global markets without needing to pick every stock yourself.

The key is choosing funds with a clear purpose. Some focus on quality, some target long-term themes, and others use a disciplined stock-selection process to look for companies that could outperform over time.

Here are three ASX ETFs that could be worth a closer look this month.

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VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The first ASX ETF to look at is the VanEck Morningstar Wide Moat ETF.

It is built around a simple idea. Some companies are better protected than others. They may have strong brands, cost advantages, network effects, or other qualities that make it difficult for competitors to take market share.

The ETF looks for US companies that have these sustainable advantages, while also paying attention to valuation.

Its holdings include NXP Semiconductors (NASDAQ: NXPI), NVIDIA (NASDAQ: NVDA), and Airbnb (NASDAQ: ABNB). NXP is an interesting example because its chips are used across cars, industrial systems, and connected devices. These are areas where reliability matters and customer relationships can be hard to displace.

That gives the VanEck Morningstar Wide Moat ETF a different feel from a standard US market ETF. It is not just buying the biggest names. It is trying to own stocks with staying power when the price looks reasonable.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

Another ASX ETF that could appeal in May is the VanEck Video Gaming and Esports ETF.

Gaming is no longer just a niche entertainment category. It has become a global media industry, with revenue coming from consoles, mobile games, online worlds, in-game spending, and the hardware that powers the experience.

This fund provides exposure to companies involved in video game development, esports, and related hardware and software globally.

Its holdings include Tencent Holdings (SEHK: 700), Electronic Arts (NASDAQ: EA), and Nintendo. Nintendo shows why this sector can be attractive over long periods. Its value is not only in hardware sales, but also in the franchises it owns and can monetise across games, films, merchandise, and new platforms.

This makes the VanEck Video Gaming and Esports ETF a way to access the broader economics of gaming rather than betting on one title, one console cycle, or one developer. It was recently recommended by VanEck.

Betashares Global Quality Leaders ETF (ASX: QLTY)

A third ASX ETF worth considering in May is the Betashares Global Quality Leaders ETF.

This fund focuses on global stocks outside Australia that rank well on measures such as return on equity, debt-to-capital, cash flow generation, and earnings stability.

Its holdings include UnitedHealth Group (NYSE: UNH), Arista Networks (NYSE: ANET), and Lam Research (NASDAQ: LRCX). Arista is a useful example. It sells networking equipment used by large cloud and AI customers. That gives it exposure to digital infrastructure, but within a business that has been selected through a quality-focused lens.

The appeal of the Betashares Global Quality Leaders ETF is that it does not rely on one theme or region. It looks for companies with financial strength across global markets, which can be a useful approach when investors want growth exposure without leaning too heavily into speculative names. This fund was recently recommended by the team at Betashares.

Motley Fool contributor James Mickleboro has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Airbnb, Arista Networks, Lam Research, NXP Semiconductors, Nintendo, Nvidia, and Tencent. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Electronic Arts and UnitedHealth Group. The Motley Fool Australia has recommended Airbnb, Arista Networks, Lam Research, Nvidia, and VanEck Morningstar Wide Moat ETF. 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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