3 strong ASX ETFs to buy for FY27

These funds could be strong picks for buy and hold investors.

Not every ASX exchange traded fund (ETF) needs to chase the hottest theme in the market.

Sometimes the better move is to own funds that can make a portfolio stronger, broader, and less dependent on one narrow idea.

With that in mind, here are three ASX ETFs that could be worth considering in FY 2027.

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Vanguard MSCI Index International Shares ETF (ASX: VGS)

The Vanguard MSCI Index International Shares ETF could be a strong foundation holding.

It gives investors exposure to more than 1,000 stocks across developed markets outside Australia.

That means a portfolio can look beyond the usual local mix of banks, miners, supermarkets, and property groups.

This fund owns international businesses across sectors such as technology, healthcare, industrials, consumer goods, financials, and communications.

The big advantage is that investors do not need to know which country, sector, or company will lead the next decade. They can own a broad slice of the developed world through one ASX trade, which is never a bad thing.

Betashares Australian Quality ETF (ASX: AQLT)

The Betashares Australian Quality ETF takes a more selective approach to the local share market.

Rather than buying Australian shares simply because they are large, this fund focuses on companies with quality characteristics.

That can include stronger profitability, lower debt, and more stable earnings.

This can be an attractive way to invest locally because the Australian share market can be heavily influenced by banks and resources companies. A quality filter gives investors a different way to sort through the ASX.

The fund still provides Australian exposure, but it does so with more discipline than a plain market-cap index.

That could make it interesting for investors who like the idea of owning local shares, but want a portfolio tilted toward stronger businesses. It was recently recommended by analysts at Betashares.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

Finally, the Betashares Global Cash Flow Kings ETF brings a different type of discipline.

It focuses on global companies that generate high levels of free cash flow.

That is important because free cash flow is the money left over after a company has paid the bills needed to keep the business running and growing.

Businesses with strong cash generation often have more choices. They can reinvest, strengthen the balance sheet, buy back shares, pay dividends, or ride out difficult periods without as much pressure.

This fund is not trying to own the loudest growth stories. It is looking for companies with financial strength sitting behind the share price. It was also recently recommended by the team at Betashares.

Motley Fool contributor James Mickleboro 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 recommended Vanguard Msci Index International Shares 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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