August is almost here, and exchange-traded funds (ETFs) can give investors a simple way to put new money to work.
The three funds below each offer a different route to long-term growth.
Here is why they would be on my buy list.
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Betashares Australian Quality ETF (ASX: AQLT)
Investing in the Australian share market does not have to mean owning every ASX share.
The AQLT ETF takes a selective approach by looking for Australian businesses with strong profitability, relatively stable earnings, and lower financial leverage.
I like that process because it directs the portfolio toward companies that have already demonstrated financial discipline. Strong businesses can often keep investing during difficult periods, protect their market positions, and recover more quickly when economic conditions improve.
The ETF still provides exposure to familiar areas of the Australian economy, including financial services, healthcare, consumer companies, resources, and technology. However, the quality screen changes which businesses receive the greatest weight.
The fund will not outperform during every market cycle. Highly speculative shares can race ahead when confidence is strong, while quality companies can become expensive after long periods of good performance.
Even so, I think this ETF offers an attractive way to invest locally without simply accepting the strengths and weaknesses of the entire market.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
The MOAT ETF looks for US companies with competitive advantages that are built to last.
Those advantages may come from a trusted brand, lower production costs, network effects, valuable intellectual property, or products that customers find difficult to replace.
The ASX ETF then considers valuation rather than buying those companies at any price.
That second step is what catches my attention. A wonderful business can still produce disappointing returns when investors begin from an excessive valuation. The VanEck Morningstar Wide Moat ETF seeks to identify companies whose market prices offer a better balance between quality and future return potential.
Its portfolio is also broader than a simple collection of the largest US technology names. The fund can move across healthcare, financial services, consumer products, industrial companies, and technology as valuations change.
For a long holding period, I think its combination of business quality and valuation discipline makes it one of the more interesting international ETFs on the ASX.
Betashares Global Cybersecurity ETF (ASX: HACK)
Cybersecurity has become a regular cost of operating in a digital economy.
Companies now store important information in the cloud, allow employees to work remotely, process payments online, and connect more devices to their networks. Each of those developments creates another area that needs protection.
The HACK ETF provides investors with exposure to global companies operating in areas such as network security, identity management, cloud protection, threat detection, and secure data access.
I think demand can keep rising because cyber threats continue changing. Businesses, governments, hospitals, and financial institutions cannot simply install one system and assume the job is finished.
Security products require updates, monitoring, and ongoing investment, which can support recurring revenue for the companies that provide them.
The fund is a focused thematic ETF, so I would expect more volatility than I would from a broad global fund. But I think it has strong long-term potential, arguably making it a great buy-and-hold option.
Foolish Takeaway
These funds approach that goal in distinct ways, whether through financially strong Australian companies, attractively priced US businesses with durable advantages, or the rising need to protect the digital economy.
Their focused strategies also mean investors should consider overlap, fees, and how each holding fits with the rest of the portfolio.
For investors putting money to work in August with a long-term mindset, I think all three deserve consideration.
