Do you have $10,000 available to invest?
Exchange-traded funds (ETFs) can provide access to a wide range of companies in one ASX investment.
The right choice will depend on the exposure an investor wants. Whether the money is a first investment or an addition to a much larger portfolio, I think the three Vanguard ETFs below are worth considering.
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Vanguard Global Technology Index ETF (ASX: VTEK)
The VTEK ETF offers a broad way to invest in the technology sector.
It tracks an index of approximately 300 large and mid-sized technology companies from developed and emerging markets. That provides exposure to semiconductors, software, computer hardware, and technology services.
I like that the opportunity extends beyond a handful of famous US companies. Technology is becoming more important across nearly every industry as businesses spend on artificial intelligence, automation, cybersecurity, cloud computing, and data.
The index also caps any single company at 20%, reducing the influence of one giant holding.
Technology shares can experience large swings when valuations or growth expectations change, but I think the long-term opportunity remains strong.
Vanguard Diversified All Growth Index ETF (ASX: VDAL)
The VDAL ETF provides exposure to more than 6,000 shares across around 50 markets.
It invests across Australian shares, developed international markets, emerging economies, and global small companies. Vanguard manages the mix and regularly rebalances the investments.
I think this makes the fund an attractive option for investors seeking broad share market exposure without selecting several separate ETFs.
The VDAL ETF targets a 100% allocation to growth assets, so it does not hold a defensive allocation to bonds.
That gives the fund greater exposure to long-term share market growth, although investors should expect some volatility during downturns.
Overall, I think the VDAL ETF stands out for the enormous range of companies and markets it places inside one investment.
Vanguard U.S. Total Market Shares Index ETF (ASX: VTS)
Lastly, the VTS ETF provides easy access to almost the entire US share market.
Its holdings extend beyond the largest companies in the S&P 500 to include mid-sized and smaller businesses. I like this approach because it captures today's market leaders while also providing exposure to companies that could become much larger.
The United States is home to leading businesses across technology, healthcare, consumer products, financial services, and industrial markets.
This does mean the fund is exposed to single-country risk. But given the strong returns the US stock market has generated over the past century, I think the potential rewards outweigh this risk.
Foolish takeaway
These Vanguard ETFs offer three different approaches.
The VTEK ETF focuses on global technology, the VDAL ETF provides broad exposure across world share markets, and the VTS ETF covers the US market from its largest companies to much smaller ones.
I think all three deserve a closer look and could be great additions to a balanced portfolio.
