Why I think these Vanguard ETFs are strong buys

From Asian growth to technological change, these funds offer access to areas with long-term potential.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I think the best exchange-traded funds (ETFs) are those that can give investors access to powerful long-term trends.

They provide exposure to areas of the global economy that can keep evolving over many years.

With that in mind, here are two Vanguard ETFs that I think are worth considering.

A smiling businessman sits at a desk with bags of money, indicating a share price rise after funding has been approved

Image source: Getty Images

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

The first ETF I would consider is one that gives investors exposure to a region undergoing enormous change.

It provides access to large and mid-sized companies across Asian markets outside Japan.

What interests me about Asia is the scale of its economic development. Millions (even billions) of people across the region are entering higher levels of consumption, adopting new technologies, and accessing services that have become common in developed markets.

That creates opportunities for businesses involved in areas such as financial services, consumer products, technology, and infrastructure.

I think the VAE ETF offers a different type of growth exposure compared with many other global ETFs. It gives investors access to companies benefiting from changing lifestyles and rising economic participation across some of the world's most populous markets.

Of course, Asian markets can experience periods of uncertainty. Different countries have different economic conditions, currencies, and regulatory environments.

But for long-term investors, I think the VAE ETF provides exposure to a region with significant room to continue developing.

Vanguard Global Technology Index ETF (ASX: VTEK)

The second Vanguard ETF I would look at is focused on one of the biggest forces reshaping the global economy.

It provides exposure to companies involved in the technology sector, including businesses developing the software, hardware, and digital infrastructure used around the world.

I think the interesting part of technology investing is how many industries now depend on it. Technology is influencing healthcare, finance, manufacturing, education, transport, and everyday communication. The companies that create these tools can become deeply embedded into how other businesses operate.

Artificial intelligence is accelerating demand for chips, cloud infrastructure, software platforms, and the digital tools businesses use to automate work. While it is still early and individual winners are difficult to predict, I think owning a basket of global technology companies provides a way to participate in that long-term opportunity.

The VTEK ETF can experience larger price movements than broader market ETFs, particularly when investors change their expectations around technology companies. But for investors with patience, I think exposure to businesses driving innovation can be a powerful addition.

Foolish takeaway

I think these Vanguard ETFs appeal for different reasons.

One provides exposure to Asia's ongoing development and the other captures the companies shaping technological change.

The common thread is that both funds give investors a way to own businesses benefiting from long-term economic progress.

That is why I think these ETFs could be valuable long-term holdings for investors who want simplicity without sacrificing exposure to global opportunities.

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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Exchange-Traded Funds (ETFs)

A gold gloved hand is held up in a stop gesture.
Opinions

Up 80% in 2 years with a 15% dividend yield, expert says sell this ASX ETF now

Let's take a look.

Read more »

Smiling man sits in front of a graph on computer while using his mobile phone.
Exchange-Traded Funds (ETFs)

3 ASX ETFs to buy and hold for 10 years

These funds could have the potential to deliver strong returns over the next decade.

Read more »

Businesswoman working from home with stock market chart showing percent change on her laptop screen.
Exchange-Traded Funds (ETFs)

Are these some of the best Betashares ETFs to buy?

I would focus on ETFs with a clear long-term role rather than funds built only around short-term excitement.

Read more »

Three hikers lift their arms in jubilation as they reach a rocky peak overlooking a sensational view of water and mountains with a blue sky surrounding them.
Exchange-Traded Funds (ETFs)

How Vanguard's biggest ASX ETFs performed in FY26

All three delivered growth and income, but which one stood out?

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Exchange-Traded Funds (ETFs)

The best ASX ETFs to buy and hold for 10 years

Looking to build wealth? Here are three funds to buy.

Read more »

A young woman with long brown hair opens her green eyes and mouth widely, expressing surprise.
Dividend Investing

The currency-hedged ASX ETFs magnifying dividends by up to 10x this season

Own IVV ETF, NDQ, or VGS? The currency-hedged versions are paying much more this season.

Read more »

Cubes placed on a Notebook with the letters "ETF" which stands for "Exchange traded funds".
Exchange-Traded Funds (ETFs)

Why I think these Vanguard ETFs are perfect buy and hold investments

These ETFs can help investors stay focused on patience, diversification, and keeping the process simple.

Read more »

Two people work with a digital map of the world, planning their logistics on a global scale.
Exchange-Traded Funds (ETFs)

3 reasons to buy the Vanguard VEU ETF

This fund could be a top pick for investors. Let's find out more about it.

Read more »