Exchange-traded funds (ETFs) are often recommended to beginners because they make investing simple.
But I think experienced investors can benefit just as much from them.
After all, knowing how to analyse individual companies doesn't mean you have to spend your time doing it. Sometimes, an ETF can provide exactly the exposure you're looking for, without the constant research and portfolio management.
With that in mind, here are three ASX ETFs that I think deserve a place on the radar of even the most experienced investors.
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iShares S&P 500 ETF (ASX: IVV)
Even professional fund managers can struggle to consistently outperform the US share market.
That's one reason I like the iShares S&P 500 ETF. It gives investors exposure to approximately 500 of America's largest listed companies, including many of the world's most successful businesses. And it does so with an annual management fee of just 0.04%.
Rather than spending countless hours trying to identify which American companies will outperform, you can own a broad selection of them and let their earnings growth do the work.
The index also evolves over time, with companies entering and leaving as their fortunes change.
I believe that makes the iShares S&P 500 ETF an excellent foundation for a long-term portfolio, leaving investors free to concentrate their research efforts on opportunities where they believe they have a genuine advantage.
Betashares Global Cybersecurity ETF (ASX: HACK)
Cybersecurity is an industry where I believe even experienced investors can benefit from leaving the stock selection to an index.
The opportunity is significant. Businesses, governments, and individuals face increasingly sophisticated cyber threats, creating demand for software and services that protect their information and systems.
But identifying the eventual winners isn't easy. Companies such as Palo Alto Networks (NASDAQ: PANW), CrowdStrike (NASDAQ: CRWD), and Fortinet (NASDAQ: FTNT) compete in a rapidly changing market, where new technologies can quickly reshape competitive positions.
The Betashares Global Cybersecurity ETF provides exposure to these businesses and other major players in the industry.
I like this approach because it allows investors to back the long-term growth of cybersecurity spending without having to predict which provider will dominate in 10 years.
Even someone with considerable investing experience might prefer that trade-off.
Vanguard MSCI Index International Shares ETF (ASX: VGS)
Finally, there's the Vanguard MSCI Index International Shares ETF.
One challenge with building an international share portfolio is deciding how much exposure to allocate to individual countries.
Should you favour the United States? What about Japan, Switzerland, or Europe's major economies? And how often should those allocations change?
The Vanguard MSCI Index International Shares ETF largely removes those decisions by providing exposure to more than 1,000 companies across developed markets outside Australia.
Its holdings include major businesses from the United States, Europe, and Asia, with an annual management fee of just 0.18%.
For experienced investors, I think this is a great way to build a diversified international portfolio without constantly reassessing geographic allocations.
It also provides a solid foundation around which investors can make more selective investments when attractive opportunities arise.
