Why I'd buy these Vanguard ETFs with $3,000 in June

A few carefully chosen ETFs can give investors broad exposure without needing to pick every stock individually.

June is here, and it could be as good a time as ever to put $3,000 to work in ASX exchange-traded funds (ETFs).

I like ETFs because they can give investors instant exposure to a wide range of companies without needing to pick every stock individually. They can also make it easier to invest across themes, regions, and markets that are difficult to access through the ASX alone.

If I were choosing three Vanguard ETFs to buy in June, these would be high on my list.

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Image source: Getty Images

Vanguard Global Technology Index ETF (ASX: VTEK)

The first Vanguard ETF I would consider is the Vanguard Global Technology Index ETF.

I like this ASX ETF because technology is no longer just one corner of the market. It is increasingly tied to how businesses operate, communicate, advertise, analyse data, automate work, and serve customers.

The VTEK ETF provides investors with exposure to global technology companies across software, semiconductors, cloud computing, devices, digital platforms, and internet services.

That includes holdings such as Nvidia, Apple, Microsoft, Broadcom, and Taiwan Semiconductor Manufacturing Co.

I think this is a good option for investors who want exposure to innovation without trying to pick the single best tech winner.

There are risks. Technology shares can be volatile, especially when valuations are high or interest rates move against growth stocks. But with a long-term mindset, I think global technology remains one of the most attractive places to invest.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

The second Vanguard ETF I would look at is the Vanguard FTSE Asia Ex-Japan Shares Index ETF.

I think this fund offers something different from the usual US-heavy ETF exposure.

The VAE ETF gives investors access to Asian share markets outside Japan. That can include companies linked to e-commerce, financial services, manufacturing, semiconductors, electric vehicles, consumer growth, and digital platforms.

Asia can be more volatile than developed markets, and investors need to be comfortable with currency, political, and regulatory risks. But I think the long-term opportunity remains compelling.

The region is home to huge populations, rising middle-class wealth, major technology companies, and economies that could keep expanding over the decades ahead.

This is not the type of ETF I would buy expecting a smooth ride every year. But I think it can offer a useful growth angle for investors seeking exposure beyond Australia, the United States, and Europe.

Vanguard S&P 500 US Shares Index ETF (ASX: V500)

The third Vanguard ETF I would consider buying with $3,000 is the Vanguard S&P 500 US Shares Index ETF.

This is one of the simplest ways to invest in the US share market through the ASX.

The V500 ETF seeks to track the S&P 500 Net Total Return Australian Dollars Index before fees, expenses, and tax. That essentially means it gives investors exposure to many of the largest listed companies in the United States.

I like the ETF because it captures a wide range of powerful global businesses. These companies are not only serving US customers. Many generate revenue across the world, with exposure to technology, healthcare, financial services, consumer brands, industrials, communications, and payments.

The V500 ETF also has a low management fee of 0.07% per annum, which is attractive for long-term investors.

It is unhedged, so currency movements can affect returns. But for investors seeking long-term capital growth, I think a low-cost US market ETF can be a very useful option.

Foolish Takeaway

The appeal of these Vanguard ETFs is that they each open a different door. One gives exposure to global technology. Another adds Asian growth. The third provides low-cost access to America's largest listed companies.

That mix will not remove market volatility, and there will be periods when one area performs better than another. But for investors who want to put money to work with a long-term mindset, I think these ETFs offer a sensible way to do it.

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Broadcom, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia has recommended Apple, Microsoft, and Nvidia. 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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