According to Betashares, one of the three overarching megatrends that's shaping the future is climate change. 

Thematic investing is when an investor tries to identify long-term transformational trends. Investors can benefit if those trends play out.

According to Betashares, as a megatrend, climate change encapsulates:

• The impacts and resource scarcity caused by climate change and environmental degradation
• Policy initiatives designed to support decarbonisation and the climate transition
• Consumer and investor preferences for sustainability.

One way to target this megatrend is through ASX ETFs. 

There are several that aim to capture this theme, some of which have dropped to start 2026. 

This could make it an ideal time to initiate an investment in this theme.

Here are some climate positive ASX ETFs to consider. 

Betashares Climate Change Innovation ETF (ASX: ERTH)

ERTH ETF aims to track the performance of an index that comprises a portfolio of up to 100 leading global companies. These companies derive at least 50% of their revenues from products and services that help to address climate change and other environmental problems through the reduction or avoidance of CO2 emissions. 

This included clean energy providers and other leading companies tackling:

• Green transport
• Waste management
• Sustainable product development
• Improved energy efficiency and storage.

It has performed extremely well over the last 12 months relative to some other climate positive funds.

It is up 10.48% in that span. 

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

This fund aims to track the performance of an index (before fees and expenses) that includes a portfolio of large global stocks identified as "climate leaders."

These companies have also passed screens to exclude companies with direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations.

At the time of writing it is made up of just over 200 international companies. Its largest exposure (73%) is to the United States. 

It has fallen 8% in 2026. 

SPDR S&P World Ex Australia Carbon Control Fund (ASX: WXOZ)

This ASX ETF combines roughly 1,000 companies outside Australia. 

It is designed to measure the performance of S&P Global ESG Score-screened companies within the S&P Developed ex Australia LargeMidCap Index and weighted to minimise carbon intensity in the portfolio. 

Essentially, the index is designed to support investors seeking to reduce their exposure to carbon intensity measured by weighted average carbon intensity.

It has fallen 5.4% year to date. 

iShares Core MSCI World All Cap ETF (ASX: IWLD)

IWLD ETF aims to provide investors with the performance of the MSCI World Ex Australia Custom ESG Leaders Index, before fees and expenses. 

The index is designed to measure the performance of global, developed market large and mid-capitalisation companies with better sustainability credentials relative to their sector peers.

At the time of writing it is made up of 655 holdings. The fund has fallen 5.3% for the year to date. 

The post Is now the time to buy climate focused ASX ETFs? appeared first on The Motley Fool Australia.

Many Aussie investors now target financial success alongside positively impacting the world through their investment choices.

This can look different for many investors. 

For some, this can focus on targeting companies aiming for certain environmental targets. 

It can also mean eliminating companies engaged in certain practices like weapons or tobacco manufacturing, gambling, etc. 

This is called negative screening.

These broader investment styles are also known as socially responsible, sustainable, green, or impact investing. 

Essentially, it will look a little different for each investor as they balance financial and ESG goals. 

If you are looking to add an ESG-themed fund to your portfolio, here are three of the most popular for investors in 2026. 

Betashares Australian Sustainability Leaders ETF (ASX: FAIR)

According to Betashares, this fund aims to track the performance of an index (before fees and expenses) that includes Australian companies that have passed screens to exclude companies with direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations.

The Fund's methodology also preferences companies classified as 'Sustainability Leaders' based on their involvement in business activities aligned to the United Nations Sustainable Development Goals.

The fund does not invest in any of the big four banks, or large Australian mining companies.

It has a management fee per annum (p.a.) of 0.49%. 

iShares Core MSCI World All Cap ETF (ASX: IWLD)

This ASX ETF provides investors with an opportunity to invest in non-Australian companies. 

The Fund aims to provide investors with the performance of the MSCI World Ex Australia Custom ESG Leaders Index. 

The index is designed to measure the performance of global, developed-market large and mid-capitalisation companies with better sustainability credentials relative to their sector peers.

More info about the index can be found here.

However, for example, it negatively screens companies engaged in industries like: 

• Adult entertainment
• Alcohol
• Weapons
• Gambling
• Oil & gas drilling
• Tobacco and more

At the time of writing, it is made up of more than 600 holdings, and comes with a management fee of 0.09% p.a. 

Betashares Climate Change Innovation ETF (ASX: ERTH)

This ASX ETF is worth listing because, rather than using negative screening and eliminating negative companies, it actually targets companies actively engaged in climate solutions. 

That might sound similar on the surface, but they're actually very different strategies. 

Negative screening only removes "bad" companies – it doesn't actively pick "good" ones.

Suppose an ESG ETF excludes fossil fuels, tobacco, and weapons.

What's left could still be a bunch of companies that are neutral or even minimally impactful – like banks, supermarkets, or software firms that aren't actively solving environmental or social problems.

You might end up with a portfolio of companies that simply aren't doing harm, but also aren't contributing anything positive, like renewable energy, clean tech, or social-impact ventures.

However, the ERTH ETF provides a portfolio of up to 100 leading global companies that derive at least 50% of their revenues from products and services that help to address climate change and other environmental problems through the reduction or avoidance of CO2 emissions. 

This covers clean energy providers, along with leading companies tackling green transport, waste management, sustainable product development, and improved energy efficiency and storage.

It comes with a management fee p.a. of 0.65%. 

The post 3 of the most popular ethical/ESG ASX ETFs in 2026 appeared first on The Motley Fool Australia.

Those ETFs include iShares Core S&P/ASX 200 ETF (ASX: IOZ) and iShares S&P/ASX Small Ordinaries ETF (ASX: ISO).

IOZ ETF delivered a solid 10.36% return for 2025 in line with the strength of the benchmark S&P/ASX 200 Index (ASX: XJO) last year.

The ISO ETF outperformed, producing a 24.54% total return as ASX small-cap shares benefitted from three interest rate cuts.

Small-caps have market valuations of between a few hundred million dollars and $2 billion, and carry more debt to fund their growth.

Perpetual portfolio manager Alex Patten said 2025 represented the first time that small-caps had outperformed "in a number of years".

Patten said:

… now that rates are starting to come down, we're seeing more interest in small and micro caps and bit more liquidity in the market.

How much will ASX ETF investors receive today?

We have summarised the dividend amounts that investors will receive today, rounded to two decimal places.

The post Own IOZ or ISO ETFs? It's dividend payday for you! appeared first on The Motley Fool Australia.

Or perhaps iShares S&P/ASX 20 ETF (ASX: ILC) or iShares S&P/ASX Small Ordinaries ETF (ASX: ISO)?

BlackRock has just announced the estimated distributions (dividends) for its ASX iShares exchange-traded funds (ETFs).

BlackRock will pay its next round of dividends on 19 January.

If you own any of these ETFs and want to top up your holdings ahead of this round of payments, you'd better be quick.

The ex-dividend date is tomorrow.

How much will iShares ASX ETF investors receive?

Here are the estimated dividends that investors will receive on 19 January.

The amounts will be finalised on Thursday, which is the record date.

Prefer to reinvest your dividends?

A distribution reinvestment plan (DRP) is available for all of the ASX iShares ETFs above.

A DRP allows investors to reinvest their distributions automatically each time dividends are paid.

It's a helpful set-and-forget option for investors seeking compounding returns over the long term.

BlackRock will be accepting DRP elections up until 5pm today.

The post Own ASX IOZ or other iShares ETFs? Dividends just announced! appeared first on The Motley Fool Australia.

A trend that is becoming increasingly prevalent is the focus on ESG investing.

ESG investing is based on environmental, social, and governance considerations. 

It is becoming increasingly important for investors to aim not only for financial returns but also to impact the world through their investment choices positively.

For example, this could mean focusing on climate-positive companies. 

Or, it can also materialise by actively excluding companies engaged in harmful industries. 

This is called negative screening – excluding companies involved in industries like fossil fuels, weapons, tobacco, gambling, etc. 

Fortunately for ESG investors, there are numerous ASX ETFs that group companies aligned with these themes.

Let's look at the funds that have brought the best returns in 2025. 

iShares Core MSCI World All Cap ETF (ASX: IWLD)

ESG investing can come in very different forms. For investors looking to add ESG exposure to their portfolio, it's vital to dig into each fund to understand the screening process and underlying holdings. 

This is important because where ASX ETF providers draw the line on an ethical company may differ from your own. 

The ethos behind the iShares Core MSCI World All Cap ETF (ASX: IWLD) is centred around investing in companies with better sustainability credentials than their peers. 

The fund aims to provide investors with the performance of the MSCI World Ex Australia Custom ESG Leaders Index, before fees and expenses. The index is designed to measure the performance of global, developed market large and mid-capitalisation companies with better sustainability credentials relative to their sector peers.

A more in-depth classification of how this screening occurs can be found in the BlackRock fact sheet. 

The fund has risen more than 11% this year. 

It is currently comprised of more than 600 underlying holdings and focuses on companies outside Australia. 

Its largest weighting by sector is to: 

• Information technology (32.66%) 
• Financials (14.73)
• Consumer discretionary (10.52%). 

Vanguard Ethically Conscious International Shares Index ETF Fun (ASX: VESG)

This fund also employs a negative screening method to build its portfolio. 

According to Vanguard, it excludes the securities of companies that have a specified level of business involvement in fossil fuels, nuclear power, alcohol, tobacco, cannabis, gambling, adult entertainment or weapons. 

The index also excludes companies involved in controversial conduct related to the principles of the United Nations Global Compact.

More in-depth information about the screening process can be found on Vanguard's website. 

The fund is up 11.6% so far in 2025. 

It is an extremely diversified fund with more than 1,400 underlying holdings. 

Its largest exposure is to: 

• Technology (40.3%)
• Consumer Discretionary (15.1%) 
• Financials (14.3%).

The post Which ethically focussed ASX ETFs have performed the best this year? appeared first on The Motley Fool Australia.

Let's check them out.

15 ASX ETFs at 52-week highs today

First up we have the Vanguard MSCI Index International Shares ETF (ASX: VGS). This diversified fund covers more than 20 advanced economies from around the world, including Canada, the United Kingdom, France, Switzerland, Singapore, and Denmark. But most of its holdings are US shares, despite the fact that this fund has almost 1,500 individual companies within it.

VGS units touched $106.05 each this morning, which is this fund's new 52-week high.

Given the dominance of US shares in the Vanguard International Shares ETF, it's no surprise to see other US-based funds doing well today. Another ASX ETF that hit a new 52-week high this morning was the iShares S&P 500 ETF (ASX: IVV). IVV units hit a new high watermark of $44.12.

This S&P 500 ETF holds the largest 500 shares in the US by market capitalisation, so shares many of the same names as VGS, like Apple, Microsoft, NVIDIA, and Alphabet, in its top holdings. The SPDR S&P 500 Trust ETF (ASX: SPY) is virtually identical to IVV in terms of holdings, so it's not a shock to see SPY units hit a new high as well. In this case, our 52-week high comes in at $656.70.

Nor the BetaShares NASDAQ 100 ETF (ASX: NDQ), with its new high of $34.80. This ETF is a little different, tracking the 100 largest shares on the NASDAQ stock exchange. However, it still holds the US tech giants listed above as its top-weighted shares.

Also sharing many of those top holdings is the Vanguard US Total Market Shares Index ETF (ASX: VTS). This fund represents an investment in almost 3,900 US shares but is still dominated by those same names. So again, no one should be taken aback by seeing VTS units at a new 52-week high of $326.70 today.

Our final funds at new highs

It's again a similar story with the Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG). This fund is very similar in nature to the Vanguard MSCI Index International Shares ETF. However, it omits companies like oil shares, tobacco shares, and other 'ethically challenged' companies. But it still holds the US tech giants as its largest investments. VESG units hit a new high of $74.38 this morning.

Similarly, the BetaShares Global Sustainability Leaders ETF (ASX: ETHI) is also having a top day. Again, this ETF holds a basket of the world's largest shares, selected using ethics criteria. The new 52-high for this one sits at $12.72.

Next up is a very similar ASX ETF in the iShares Core MSCI World ex-Australia ESG ETF (ASX: IWLD). This fund is provided by BlackRock and represents a similar investing mandate of choosing the world's largest companies from advanced economies with an ethical bias. IWLD units touched a new 52-week high of $45.60 this session.

Our next ETF to examine today is cut from a different cloth. The VanEck MSCI International Small Companies Quality ETF (ASX: QSML) is a fund that has a portfolio of around 150 different small companies that fulfil certain 'quality' metrics, such as a high return on equity and low leverage. QSML units hit a new 52-week high of $23.53 earlier today.

Onto our final six ETFs at new 52-week highs today are as follows:

• Global X Battery Tech & Lithium ETF (ASX: ACDC) with a new 52-week high of $105.99
• BetaShares S&P 500 Equal Weight ETF (ASX: QUS) at $43.39
• Global X Morningstar Global Technology ETF (ASX: TECH) at $92
• VanEck Morningstar Wide Moat ETF (ASX: MOAT) at $120.18
• BetaShares Global Quality Leaders ETF (ASX: QLTY) at $24.09
• BetaShares Global Shares ETF (ASX: BGBL) at $53.21

The post 15 ASX ETFs smashing new 52-week highs on Wednesday appeared first on The Motley Fool Australia.

Today, we have seen not one, not five, not 10, but 12 ASX ETFs hit new 52-week highs.

Here's the whole dozen, plus the new 52-week high each has hit this Thursday:

• VanEck MSCI International Quality ETF (ASX: QUAL), with a new high of $42.04 per unit
• BetaShares NASDAQ 100 ETF (ASX: NDQ), at $31.71
• iShares Global 100 ETF (ASX: IOO) at $109.77
• Vanguard Ethically Conscious International Shares Index ETF (ASX: VESG) at $71.43
• iShares Core MSCI World ex-Aus ESG Leaders ETF (ASX: IWLD) at $43.81
• iShares MSCI Japan ETF (ASX: IJP) at $92.92
• Global X FANG+ ETF (ASX: FANG) at $16.29
• BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) at $11.78
• BetaShares Japan ETF (ASX: HJPN) at $15.88
• VanEck Video Gaming and Esports ETF (ASX: ESPO) at $9.90
• BetaShares Global Shares ETF (ASX: BGBL) at $51.23
• Global X S&P 500 Covered Call ETF (ASX: UYLD) at $10.93

So, a happy day for these ETFs and their ASX investors today, to be sure.

Not so-cheaper by the dozen: Why are these 12 ASX exchange-traded funds at new highs today?

You might notice that all 12 of these ASX exchange-traded funds have something in common. The whole dozen represent international shares. Yep, there are no ASX-tracking ETFs here, index funds or otherwise.

In fact, 10 out of the 12 ASX exchange-traded funds on this list are heavily weighted to United States markets, with the two exceptions being the Japanese-focused funds.

So there are two primary reasons why these ETFs are doing so well today. The first is the Australian dollar. It was only last week that the Aussie dollar was closing on being able to buy 68 US cents. But this week, our coal currency has taken a bit of a dip and is buying closer to 66.5 US cents right now.

That might not seem like a big difference, but it is worth a lot when you have a portfolio of American or Japanese shares. If our dollar buys fewer US dollars or yen, then investments denominated in these currencies are worth more when priced in Australian dollars. As such, all 12 of these ETFs are benefitting enormously from the falling currency.

The second is the strength of the US and Japanese markets in general. Last night alone, we saw the US S&P 500 Index add a healthy 1.19%, with big names like Amazon.com and Alphabet recording a 1.85% and 1.16% gain respectively.

And in Tokyo, the Nikkei 225 Index has added 1.46% today thus far, after putting on almost 4% so far this week.

So with these two factors in play, it's not too surprising to see these ASX exchange-traded funds that are heavy with US and Japanese shares clock new 52-week highs today.

The post 12 ASX exchange-traded funds (ETFs) smashing new 52-week highs today appeared first on The Motley Fool Australia.

Inflation and higher interest rates have punished the valuations of plenty of businesses that are expected to grow their operations over the coming years.

After all of the investor panic that we saw earlier in the year, there appear to be signs that investors are now returning to the market.

Is confidence returning?

According to the Sharesies Investing Insights report for October 2022, there was "steady buying by the majority of investors, with some choosing to buy and sell the market moves."

For me, this was one of the most interesting takeaways from the report:

Twice as much buying as selling on the Sharesies platform this month. Buy orders outstripping sell orders is a consistent pattern on the platform over the last six months, regardless of market volatility.

Which ASX shares are people buying?

ASX mining shares were some of the most popular investments last month according to the report.

In terms of the total amount invested, in dollar terms, these were the top ten: Sayona Mining Ltd (ASX: SYA), New Hope Corporation Limited (ASX: NHC), Fortescue Metals Group Limited (ASX: FMG), Core Lithium Ltd (ASX: CXO), Pilbara Minerals Ltd (ASX: PLS), Qx Resources Ltd (ASX: QXR), Telstra Corporation Ltd (ASX: TLS), BHP Group Ltd (ASX: BHP), Qantas Airways Limited (ASX: QAN) and Flight Centre Travel Group Ltd (ASX: FLT).

However, the list was a little different when you look at which were the top 10 most bought ASX shares by the number of investors. Here is the list: BHP, Fortescue, Commonwealth Bank of Australia (ASX: CBA), Pilbara Minerals, Wesfarmers Ltd (ASX: WES), Core Lithium, Woolworths Group Ltd (ASX: WOW), Qantas, Coles Group Ltd (ASX: COL) and Macquarie Group Ltd (ASX: MQG).

Perhaps unsurprisingly, investors were drawn to a number of ASX's blue chips.

Strong levels of ETF investing

According to the report, exchange-traded funds (ETFs) saw four times as much buying in dollar volume traded terms as selling in October.

Sharesies suggested that this was "likely driven by investors employing a dollar-cost averaging investment strategy".

These were some of the ETFs getting investor attention last month:

Vanguard Australian Shares Index ETF (ASX: VAS)

VanEck Global Clean Energy ETF (ASX: CLNE)

BetaShares Climate Change Innovation ETF (ASX: ERTH)

iShares Core MSCI World Ex Aus ESG Leaders ETF (ASX: IWLD)

iShares Core MSCI Australia ESG Leaders ETF (ASX: IESG)

Foolish takeaway

While investors may be coming back to the market, it doesn't mean that the market has reached a bottom yet. Only time will tell whether June was the month we saw the lowest prices for many ASX shares.

The post Are ASX share investors getting their mojo back? appeared first on The Motley Fool Australia.

But some ETFs managed a 2021 performance far exceeding that benchmark. So here are the ASX's best performing ETFs of 2021.

The 5 best performing ASX ETFs of 2021

iShares S&P 500 ETF (ASX: IVV)

This ETF from BlackRock's iShares is our first high flyer to check out today. IVV is a rather simple ETF, covering the most-tracked index in the world, the US S&P 500. This index tracks 500 of the largest companies on the US markets. These include everything from the US tech giants like Apple Inc (NASDAQ: AAPL) and Amazon.com Inc (NASDAQ: AMZN) to Warren Buffett's Berkshire Hathaway Inc (NYSE: BRK.A)(NYSE: BRK.B), Adobe Inc (NASDAQ: ADBE) and Ford Motor Company (NYSE: F).

IVV returned 36.36% in 2021, making it the ASX's fifth best-performing ETF.

iShares Core MSCI World ex Australia ESG Leaders ETF (ASX: IWLD)

Another iShares ETF, this fund comes in next. IWLD is an ETF that focuses on mid- and large-cap companies from outside Australia, selected for "leading ESG practices within their industry". At the time of writing, this ETF has 720 holdings, the largest mostly coming from the US markets. We have Apple and Microsoft Corporation (NASDAQ: MSFT), as well as Tesla Inc (NASDAQ: TSLA), Mastercard Inc (NYSE: MA) and Toyota Motor Corp (NYSE: TM).

IWLD returned just over 38% for the 2021 calendar year.

SPDR Dow Jones Global Real Estate Fund (ASX: DJRE)

Our third top-performing ETF of 2021 is a little different. Rather than racking large baskets of shares, this ETF only holds real estate investment trusts (REITs) and other property-linked companies and funds from around the world. The ASX's Goodman Group (ASX: GMG) is a large holding here, as well as other shares like Prologis Inc (NYSE: PLD) and Public Storage (NYSE: PSA). Over 2021, DJRE returned 38.56%, of which 4.05% came from dividend distributions.

BetaShares Crude Oil Index ETF (ASX: OOO)

A whole different kettle of fish again, this EFT from BetaShares takes the silver medal for 2021 performance. OOO is a pure-play commodities fund. It tracks an index that reflects the performance of crude oil futures. As you may be aware, oil had a dramatic 2021, rising to levels we haven't seen for years. This is reflected in this ETF's performance, which gave investors a healthy return of 47.8% over the year just gone.

BetaShares Geared US Equity Fund (ASX: GGUS) and ETFS Ultra Long Nasdaq 100 Hedge Fund (ASX: LNAS)

In a 2-for-1 special, these two ETFs were the best performing of the entire ASX last year. We'll look at them together since they largely operate in a similar manner, and track similar markets. These two ETFs are 'leveraged' (or geared) which means they use borrowing to potentially magnify the gains (or losses) of the indexes they track.

BetaShares' GGUS covers the S&P 500 Index, while ETFS' LNAS covers the Nasdaq 100. Fortunately for investors, last year was a lucrative one for both of these indexes, which means that these ETFs recorded larger gains again due to their leveraged nature. LNAS returned a total of 64.7% in 2021, while GGUS gave back a very pleasing 66.25%, making it the best ASX ETF on the market.

The post Here are the 5 best performing ASX ETFs of 2021 appeared first on The Motley Fool Australia.

There are a lot of things to love about our ASX and Aussie share market. Franking credits are a benefit loved by millions of investors. And there's no doubt that some of our biggest companies like Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW) and CSL Ltd (ASX: CSL) have made many investors very wealthy over the years.

Ditto with newer growth stocks like Afterpay Ltd (ASX: APT), A2 Milk Company Ltd (ASX: A2M) and Xero Ltd (ASX: XRO).

But is a portfolio that solely consists of ASX shares (regardless of how blue their chips are) a safe and secure way to invest?

The risks of an all-share portfolio

That depends on your risk tolerance and the kind of loss you can take. See, regardless of the industry, all ASX shares are bound together because they are all part of the same asset class – pieces of Australian public companies.

If Australia was to go into recession – most ASX shares would be affected.

If we had some kind of currency crisis – most ASX would be affected.

And if the Reserve Bank of Australia (RBA) dramatically raised interest rates – guess what, all ASX shares would be affected.

There are a lot of risks that would broadly affect shares as a whole asset class – not just individual companies.

You might see this and decide to invest in some international shares – perhaps through a wide-ranging exchange traded fund like the iShares Core MSCI World All Cap ETF (ASX: IWLD). This ETF holds nearly 4,000 companies from around the world – everything from Apple and Microsoft to Nestle and Toyota.

But here's the kicker – the Australian share market is intrinsically tied to the fortunes of the other major stock markets around the world. Especially the US.

So while diversifying into international shares can be advantageous from a diversification standpoint, it will only help insulate your portfolio form Australia-centric issues, not a global recession like the GFC.

What's the solution, then?

In order to truly manage risk, you need to invest in asset classes that are not correlated with shares – ASX or international.

There's always cash, but we all know the kinds of returns you can expect from term deposits these days.

Government (or even corporate) bonds are a popular alternative. These are normally judged to be 'risk-free' because of the evergreen ability of governments to create money and not default. More importantly, bonds are often negatively correlated with shares, meaning they might rise if the share market falls.  You can use ETFs like the Vanguard Australian Fixed Interest Index ETF (ASX: VAF) for bond exposure.

Gold is a more controversial choice. Its status as a 'safe-haven' always attracts some risk-averse investors, regardless of its lack of yield. The ETFS Physical Gold ETF (ASX: GOLD) is an option if this path appeals to you.

Foolish Takeaway

If you're young or have a low-risk tolerance, by all means, stick with investing in shares. But If you're approaching retirement and are wary of capital loss, don't make the mistake of assuming your 'diversified' portfolio of only ASX blue-chip shares offers you protection from losses.

The post Is an ASX-only share portfolio safe? appeared first on The Motley Fool Australia.

Here we take a look at why ETFs make great Christmas gifts.

ETFs as gifts

Too often we give and receive gifts that we forget by next Christmas. Our gifts are frequently short term in nature, destined for landfill. But we can give gifts that will give benefits for years to come. By giving the gift of an ETF, you give the recipient the opportunity to receive distributions indefinitely and to benefit from potential capital growth.

ETFs may be intangible, but they confer valuable rights on the holder. ETFs are traded on the ASX like ordinary shares. They generally hold a basket of securities that investors in the ETF gain exposure to. ETFs now exist which provide coverage of virtually every major asset class, commodity, and currency. Further, structured ETFs exist to pursue particular investment strategies and styles.

Holding multiple securities means ETFs come with inbuilt diversification. This provides a degree of protection against unsystematic risks, lowering volatility. ETFs can therefore provide a quick and easy method of portfolio diversification.

A broad range of ETFs are traded on the ASX that are designed to give exposure to everything from corporate bonds to technology shares. These can be used to complement existing portfolio holdings or align with personal values and interests.

ETFs can make a valuable gift for children where possible. They provide the opportunity to teach children about the time value of money and other fundamental investment tenants, and children also have a longer period to hold investments and thus ride out volatility in the market. For example, if a child is gifted $1,000 of in ETFs each Christmas from age 1, which grow at 8% per annum, they will have $37,450 by age 18.

Some gift recipients may have an idea about a particular ETF they are interested in. Others may be happy with your choice. Given the broad range of available ETFs, an ETF can generally be found to fit the tastes and values of the recipient. Here are 6 ETFs that make great Christmas gifts.

For the beginner investor

The Vanguard Australian Shares Index ETF (ASX: VAS) tracks the return of the ASX 300 before taking into account fees, expenses, and tax. The ETF returned 19.36% in the year to 31 October 2019. Management fees are 0.10% and distributions are made quarterly.

The ETF held 303 securities as at 31 October. Top holdings were Commonwealth Bank of Australia (ASX: CBA), CSL Limited (ASX: CSL), BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Woolworths Group Limited (ASX: WOW).

For the yield investor

The ETFS S&P/ASX 300 High Yield Plus ETF (ASX: ZYAU) offers exposure to ~40 stocks from the ASX 300 with the highest shareholder yields that meet certain quality and liquidity requirements. The ETF returned 13.61% in the year to 31 October. Management fees are 0.35% per annum and distributions are made quarterly.

Top holdings include Wesfarmers Ltd (ASX: WES) (10.13%), Westpac (9.78%), ANZ (9.73%), Transurban Group Ltd (ASX: TCL) (9.63%), Woodside Petroleum Limited (ASX: WPL) (9.14%), Qantas Airways Ltd (ASX: QAN) (5.50%), South32 Ltd (ASX: S32) (5.23%), and Scentre Group (ASX: SCG) (5.08%).

For the international investor

The iShare Core MSCI World All Cap ETF (ASX: IWLD) provides exposure to a broad range of developed market companies around the world. The ETF tracks the MSCI World Investable Market Index, before fees and expenses. The fund returned 15% to 31 October 2019. Management fees are 0.09% per annum and distributions are made twice yearly.

Top holdings include Microsoft (2.41%), Apple (2.33%), Amazon.com (1.61%), Facebook Class A (1.01%), Berkshire Hathaway Class B (0.92%), JPMorgan Chase & Co (0.88%), Alphabet Class C (0.84%), Alphabet Class A (0.83%), and Johnson & Johnson (0.77%).

For the ethical investor

The Betashares Australian Sustainability Leaders ETF (ASX: FAIR) provides exposure to a portfolio of companies screened to preference businesses engaged in sustainable business practices and avoid those engaged in activities deemed inconsistent with responsible investment considerations. The ETF returned 22.15% in the year to 31 October. Management costs are 0.49% per annum and distributions are made twice annually.

Top holdings include CSL Limited (4.6%), Resmed Inc (ASX: RMD) (4.3%), Suncorp Group Ltd (ASX: SUN) (3.9%), Sonic Healthcare Ltd (ASX: SHL) (3.8%), Brambles Limited (ASX: BXB) (3.8%), Insurance Australia Group Ltd (ASX: IAG) (3.8%), Cochlear Limited (ASX: COH) (3.7%) and Telstra Corporation Ltd (ASX: TLS) (3.7%).

For the tech investor

The Betashares NASDAQ 100 ETF (ASX: NDQ) provides exposure to the 100 largest non-financial securities listed on the NASDAQ stock market, by market capitalisation. The ETF tracks the performance of the NASDAQ-100 Index, before fees and expenses. The fund returned 19.90% in the year to 31 October. Management costs are 0.48% per annum and distributions are made twice yearly.

Top holdings include Apple (12.1%), Microsoft (11.6%), Amazon.com (9.0%), Alphabet (8.6%) Facebook (4.9%), Intel (2.9%), Comcast (2.2%), Cisco Systems (2.1%) and Pepsico (2.1%).

For the property investor

The Vanguard Australian Property Securities Index ETF (ASX: VAP) provides exposure to property securities listed on the ASX. Property sectors the ETF invests in include retail, office, industrial and diversified. The ETF tracks the return of the S&P/ASX 300 A-REIT Index before taking into account fees, expenses and tax. The fund returned 21.90% in the year to 31 October. Management fees are 0.23% per annum and distributions are made quarterly.

Top holdings include Goodman Group (ASX: GMG) (17.28%), Scentre Group (15.28%), Dexus Property Group (ASX: DXS) (9.72%), Mirvac Group (ASX: MGR) (9.52%), Stockland Corporation Ltd (ASX: SGP) (8.92%), GPT Group (ASX: GPT) (8.59%), Vicinity Centres (ASX: VCX) (6.43%), and Charter Hall Group (ASX: CHC) (3.92%).

Foolish takeaway

An unexpected and thoughtful gift, ETFs show that you are thinking about someone's future. The range of ETFs available on the ASX means it is easy to find one that matches your recipient's values and interests, or even one that matches your own.

The post Why ETFs make great Christmas presents appeared first on The Motley Fool Australia.

Qantas shares have had a rocky 2019 so far, but are still up 17% for the year (not including dividends). The shares were under pressure in the immediate aftermath of the September Saudi Arabian oil strikes, but have since recovered those losses to make today's new high.

Why are Qantas shares at this new high?

Investors have been bullish on Qantas in general after the company's turnaround strategy (commenced in 2011) has resulted in record profitability for the airline, and a robust dividend that on today's pricing indicates a starting yield of 3.7%.

However, QAN shares seem to have gotten a major boost following an ASX announcement from the company late yesterday afternoon. In this release, Qantas announced that it is again in the position to qualify for inclusion in the MSCI Global Investable Market Indexes.

The MSCI index is tracked by some of the largest exchange traded funds (ETFs) in the world, including those from ETF giants Vanguard and BlackRock. ETFs like the Vanguard MSCI Index International Shares ETF (ASX: VGS) and the iShares Core MSCI World All Cap ETF (ASX: IWLD), which have tens of billions of dollars of assets under management around the world, will now be including Qantas in their holdings (outside Australia).

This obviously adds huge liquidity and underlying demand to the Qantas share price and explains why investors have been fighting to get a hold of QAN shares today.

Foolish takeaway

Whilst I don't think that the ebbs and flows of index funds are anything to get too excited over, I still think Qantas is a great company and a valuable one to own for dividend income. However, the company is heavily exposed to oil prices, so if these start to climb, it might be a bad time to own airline shares.

The post Why the Qantas share price is at a new 52-week high appeared first on The Motley Fool Australia.

With our ageing population, there is going to be more pressure than ever on the government to look after us in retirement and the more people who take their own wealth and future in their own hands, the better.

Here are two ASX shares that would be great starting investments (in my opinion) for a starter portfolio.

iShares Core MSCI World All Cap ETF (ASX: IWLD)

This exchange-traded fund (or ETF) is actually an 'ETF of ETFs', meaning that IWLD holds underlying ETFs as part of its strategy. With IWLD, you get exposure to thousands of companies, small and large, across the developed world, including Japan, the United States (US), Canada, Europe and Australia. With this level of diversity, you are looking at a well-balanced and sector-blind investment vehicle that should pay off well over the long-term.

Its top holdings include US tech names like Microsoft and Apple, but really you are getting exposure to more than 3,800 companies across these regions. IWLD is currently yielding a 2.52% distribution, so you get a nice income stream on the side as well. IWLD charges a management fee of 0.09%, which is extremely cheap and a small price to pay for such large diversification.

Magellan Global Trust (ASX: MGG)

Magellan Global Trust is an investment vehicle with a slightly more convictive strategy, investing in 15 to 35 of the world's best global stocks, whilst targeting a 4% cash distribution yield. Currently, MGG invests in companies like Visa, Starbucks, Facebook and Reckitt Benckiser (that's Benckiser, not Ralph) so you can be confident your money is going into quality companies from around the world.

Because MGG is an actively managed listed trust, you will have to pay a higher management fee (1.35%), but MGG has demonstrated the performance to make this worthwhile (in my opinion), having returned 16.22% per annum since its inception. I think MGG is another great option for beginners, due to its robust performance history and solid investment strategy.

Foolish takeaway

In my opinion, either of these ASX-listed investment vehicles would make a great choice for anyone who wants to put their money to work but doesn't know where to start. IWLD is definitely the 'safer' option due to its diversity and cheap fees, but if you're looking for more performance and a little more risk, MGG is also a great option.

The post 2 easy ASX shares for a starter portfolio appeared first on The Motley Fool Australia.