Not just next week or next month, but over the next five to ten years.

ASX exchange traded funds (ETFs) can be a good way to invest in long-term themes, quality companies, and entire sections of the market without having to pick every individual winner.

With that in mind, here are three fantastic ASX ETFs that could be worth a look in September.

Global X Artificial Intelligence ETF (ASX: GXAI)

The Global X Artificial Intelligence ETF could be an ASX ETF to consider for investors wanting exposure to the AI boom.

This fund gives investors access to companies involved in artificial intelligence and the technology that supports it.

That can include businesses linked to chips, cloud computing, software, automation, data infrastructure, and other parts of the AI ecosystem.

Another positive with the ETF is that it does not require investors to make a single call on which AI company will dominate.

That is important because the AI opportunity is large, but it is also moving quickly. Some winners today may not be the winners of tomorrow.

The Global X Artificial Intelligence ETF gives investors a way to back the broader theme while spreading the risk across a basket of companies.

VanEck MSCI International Quality ETF (ASX: QUAL)

The VanEck MSCI International Quality ETF takes a very different approach.

Rather than focusing on one fast-moving theme, this ASX ETF looks for international companies with quality characteristics.

That means businesses with strong profitability, healthy balance sheets, and stable earnings. This could be a smart way to invest globally.

The world is full of companies, but not all of them are worth owning. Some are highly cyclical, some carry too much debt, and some struggle to grow consistently. The VanEck MSCI International Quality ETF tries to tilt investors toward the stronger names.

This could make it a strong long-term holding for investors who want global exposure with a quality filter.

Betashares S&P/ASX Australian Technology ETF (ASX: ATEC)

A third ASX ETF to look at is the Betashares S&P/ASX Australian Technology ETF.

This fund gives investors exposure to Australian technology stocks.

The local tech sector is much smaller than the US market, but that does not mean it should be ignored.

Australia has produced some impressive technology businesses across software, online marketplaces, payments, data, and digital services.

The Betashares S&P/ASX Australian Technology ETF gives investors a way to gain exposure to this part of the ASX without needing to choose one company.

It can be volatile, especially when growth shares fall out of favour.

But if more of the Australian economy keeps shifting online and local technology companies continue expanding offshore, this ETF could have plenty of long-term potential.

The post 3 fantastic ASX ETFs for Aussie investors in September appeared first on The Motley Fool Australia.

I think that the businesses which can grow the most over the next 10 years could be the best investments today, even if they don't seem cheap.

I believe the following two investments could be excellent buys today.

L1 Group Ltd (ASX: L1G)

L1 Group is a fund manager that offers clients exposure to a number of pleasing investment strategies including its long short strategy, a global long short strategy, a gold strategy and a few others.

There are a few important drivers of a fund management business, including solid fund performance and long-term growth of funds under management (FUM), since that's what generates the revenue.

In FY26, the company reported FUM growth of around 17% to $19.1 billion. Revenue rose 49% while expenses declined around 15%, leading to strong positive operating leverage. Underlying net profit grew 97% to $188.8 million.

Following its merger/takeover of Platinum, it has achieved cost synergies of $31.7 million, with the cost target increased from $35 million to $43 million.

There are a number of other growth avenues for the business, including two extension strategies, a new PXC Advisors joint venture, offshore distribution build-out in North America, Europe, the Middle East and Africa. L1 has also confirmed an Australian small caps strategy.

Overall, the outlook for the ASX share seems very positive for the business in the long-term and I think the differentiated strategies with great performance is a promising future.

VanEck MSCI International Quality ETF (ASX: QUAL)

Another investment that I'm bullish about for the long-term is this exchange-traded fund (ETF) which aims to buy high-quality global shares.

There are three factors that a business must rank highly on to be potentially included in this ETF's holdings.

First, companies must have a high return on equity (ROE). That means the business makes a lot of profit for how much shareholder money is still retained within the business. Plus, it could be a good indicator of how much profit the business could make on additional retained earnings in the future.

Second, businesses must have earnings stability. That should mean there is less chance of their earnings going down, which could suggest stronger performance during economically weak times. If earnings are regularly going up, that's a good sign for capital growth.

Third, the QUAL ETF holdings must have low debt levels, which is a pleasing sign of the company's balance sheet strength.

When you put those elements together, it's not surprising that the QUAL ETF has returned an average of 15% per year over the last decade. I think it could be a very solid performer over the next decade as well.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

That is why exchange traded funds (ETFs) can be so helpful for beginners.

They allow investors to buy a basket of shares in a single trade, which can make it easier to build a portfolio without having to pick every company yourself.

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

VanEck MSCI International Quality ETF (ASX: QUAL)

The first ASX ETF for beginners to consider is the VanEck MSCI International Quality ETF.

This fund gives investors exposure to international companies with quality characteristics.

That means it looks for businesses with strong profitability, healthy balance sheets, and stable earnings.

For beginners, I think that is a sensible place to start. Instead of simply buying the biggest companies overseas, this ETF applies a quality filter that can help investors gain exposure to global leaders with strong financial profiles.

Betashares Australian Quality ETF (ASX: AQLT)

Another ASX ETF that could suit beginners is the Betashares Australian Quality ETF.

This fund brings the quality focus closer to home by investing in Australian companies with the same characteristics.

The local market has plenty of well-known businesses, but not all of them are created equal. Some have stronger balance sheets, more consistent earnings, and better returns on capital than others.

This ETF tries to push investors toward those higher-quality names.

That could make it a good option for beginners who want Australian exposure but do not want to simply buy the market in the usual bank-heavy and resource-heavy way.

Global X Artificial Intelligence ETF (ASX: GXAI)

A third ASX ETF for investors to look at is the Global X Artificial Intelligence ETF.

This is the more adventurous option of the three. It gives investors easy access to companies involved in artificial intelligence.

That could include businesses connected to chips, cloud computing, software, automation, data, and other parts of the AI ecosystem.

This could be a good place to invest. After all, AI could be one of the biggest investment themes of the next decade.

However, it is worth acknowledging that the AI industry's growth will not be in a straight line. This could make it a volatile fund to own.

Even so, for investors with a long-term view, it offers a simple way to gain exposure to the AI boom without trying to pick the individual winners.

The post 3 super ASX ETFs for beginner investors appeared first on The Motley Fool Australia.

However, not all ASX ETFs are created equal. Some options are better than others because they are higher quality and internationally diversified.

I believe that VanEck MSCI International Quality ETF (ASX: QUAL) and Betashares Global Quality Leaders ETF (ASX: QLTY) are two of the best picks investors could make, which is why I'm an investor myself. Let's look at the positives – they each target multiple factors to pick stocks to build their portfolio.

Diversification

Each of these ASX ETFs look across the world to build a wonderfully diverse portfolio across hundreds of stocks in different sectors.

The QLTY ETF looks to invest in 150 global companies, while the QUAL ETF has around 300 names in the portfolio. They provide exposure to high-quality companies from across the world, including the US, Switzerland, the UK, Japan, the Netherlands, Germany, France, Germany, Denmark and so on.

I think it's a good idea for Aussie investors to have exposure to various markets, not just Australia, because the ASX only makes up a small portion of the global stock market. There are many other good businesses out there in the world.

But, these ASX ETFs aim to only invest in the best global businesses by ranking stocks based on multiple elements.

Return on equity

Both funds want to choose businesses with a high return on equity (ROE). That means they need to make a high level of profit for how much shareholder money is retained within the business.

The higher the ROE, the higher the quality of the business. It also suggests the business can earn a high ROE on future retained profits, which bodes well for potential shareholder returns.

Debt levels

Both ASX ETFs want to invest in businesses that have low debt levels for their size. This means they are in a healthier financial position than average. Their balance sheets can generate interest income if they have strong cash levels, as opposed to experiencing high interest costs if they have a lot of debt.

The businesses in the portfolio also have the financial firepower to make acquisitions, rather than being exposed to a takeover during economic downturns.

Consistent earnings

The third factor that both funds look for in a business is earnings stability. That suggests that the profit doesn't usually go backwards. If earnings aren't going down, then it likely means profit is rising – that's a great tailwind for share price growth over the long-term.

Cash flow generation

There is an additional characteristic that the QLTY ETF looks for – cash flow generation ability. It's important to see that accounting profit translates into real money that's flowing through the business bank account.

Great results

Past performance is not a guarantee of future results, but both the QLTY ETF and QUAL ETF have delivered pleasing returns for investors. I expect their long-term returns will continue to be solid.

Since inception in November 2018, the QLTY ETF has returned an average of 13.6% per year.

The QUAL ETF has returned an average of 15.2% per year since its inception in October 2014.

I think these funds can work nicely with a portfolio of ASX shares.

The post 2 amazing ASX ETFs I'd buy and hold for the next decade appeared first on The Motley Fool Australia.

I would begin with businesses that can keep generating cash flow, investing, and growing through different market conditions.

Here is how I would put together a strong ASX share portfolio from the ground up.

Start with demand that keeps returning

I would begin with companies that sell products or services that customers continue buying across different economic conditions.

Coles Group Ltd (ASX: COL) fits that description. Households may change brands, search harder for specials, or reduce spending elsewhere, but groceries and everyday essentials remain regular purchases.

Telstra Group Ltd (ASX: TLS) offers another source of recurring demand. Mobile and internet connections now support work, payments, entertainment, travel, and communication, giving the company a relatively defensive earnings base.

These shares can still fall during a market sell-off. Their businesses simply give me more confidence that revenue will keep arriving while weaker parts of the economy struggle.

That can make it easier to remain patient and keep collecting dividends.

Own companies that can keep investing

Defensive earnings can provide stability, while long-term growth gives the portfolio a better chance of recovering strongly.

ResMed Inc (ASX: RMD) is one company I would consider.

Demand for sleep and respiratory treatment could continue growing as awareness improves and more patients receive a diagnosis. The company also earns ongoing revenue through masks, replacement products, monitoring, and connected software.

I would also consider Macquarie Group Ltd (ASX: MQG).

Its earnings can move around as deal activity, asset sales, and commodity markets change. However, the group has repeatedly found opportunities across infrastructure, private markets, energy, financing, and asset management.

A difficult market can eventually create attractive conditions for businesses with capital, experience, and the confidence to keep investing.

Add global quality

An Australian portfolio can become heavily dependent on local banks, resources companies, consumer spending, and the domestic economy.

I would widen the opportunity set through an exchange-traded fund (ETF) such as the VanEck MSCI International Quality ETF (ASX: QUAL).

This ETF invests in global companies selected using measures linked to profitability, earnings stability, and financial leverage.

I like that quality focus during uncertain periods. Companies with strong margins, healthy balance sheets, and dependable earnings often have more freedom to keep investing when conditions become difficult.

QUAL also provides exposure to industries and business models that are less prominent on the ASX, thereby reducing the portfolio's dependence on developments in Australia.

Keep buying capacity available

A market fall becomes far less intimidating when an investor still has money available to put to work.

I would keep regular contributions flowing and maintain a modest cash reserve for attractive opportunities.

The cash is there to provide flexibility rather than predict the exact bottom. I may begin buying after a 10% fall, add again if prices weaken further, and continue while the long-term investment case remains sound.

That approach can turn volatility into a source of better entry prices.

I would also avoid filling the portfolio with too many holdings. A manageable collection makes it easier to follow each company and decide whether a falling price reflects temporary fear or a genuine change in the business.

Foolish Takeaway

A resilient ASX portfolio can still lose value during a bad year.

Its strength comes from owning businesses that keep generating cash flow, investing for growth, and serving customers who continue to need what they provide.

That gives an investor stronger reasons to hold through weakness and enough confidence to add when prices become more attractive.

I would build gradually, spread exposure across different earnings drivers, and leave room to respond when markets create opportunities. Over time, that discipline can be just as important as choosing the shares themselves.

The post How I would build a strong ASX share portfolio from scratch appeared first on The Motley Fool Australia.

With three carefully chosen investments, I think an investor could gain exposure to global growth, dependable infrastructure, and a business with substantial room to expand.

The key is giving each holding a clear job.

Start with global quality

I would make VanEck MSCI International Quality ETF (ASX: QUAL) the largest holding.

This exchange-traded fund (ETF) provides exposure to international companies selected using measures such as profitability, balance sheet strength, and earnings stability.

I like that approach because the global share market contains thousands of businesses, but they are not all equally attractive. A quality filter can direct more of the portfolio towards companies that have already shown an ability to generate strong returns without relying heavily on debt.

These businesses may sell software, medicines, consumer products, industrial equipment, or financial services. What connects them is the financial strength that can support continued investment through changing economic conditions.

International shares also give Australian investors access to industries and business models that are less prominent on the ASX.

I would expect this holding to do most of the long-term compounding.

Add dependable infrastructure

The second investment would be APA Group (ASX: APA).

APA owns and operates energy infrastructure, including pipelines and other assets that help move and store energy around Australia.

I think infrastructure can bring a different rhythm to a portfolio. Demand is linked to essential services, while many assets are supported by long-term agreements or regulated arrangements.

APA also pays dividends, which could provide some income while the wider portfolio continues growing.

The energy system is changing, and APA will need to invest carefully as Australia moves towards a different mix of generation and storage. Debt, interest rates, regulation, and project returns all deserve attention.

Even so, I like the idea of owning assets that remain deeply connected to how homes and businesses receive energy.

Include a long-term growth share

The final investment would be Xero Ltd (ASX: XRO).

Xero has developed accounting software that sits close to the daily financial activity of small businesses. Customers can use the platform for invoicing, payroll, payments, reporting, tax, and cash flow management.

That position gives Xero room to become more valuable to each customer over time.

The company can add services, improve automation, and use data to help business owners make better decisions. Its opportunity in the United States also leaves plenty of space for expansion if execution remains strong.

Xero shares can be volatile, and investors are often asked to pay a high valuation for future growth. I would therefore keep the allocation smaller than the global ETF holding.

For a long investment horizon, I think the company has the potential to become a much larger financial platform.

How I would split the money

I would put around 50% of the portfolio into the QUAL ETF, 25% into APA Group, and 25% into Xero shares.

That split would place most of the money in a diversified global holding while still leaving enough exposure to income and company-specific growth.

The exact percentages could change with an investor's age, income needs, and tolerance for volatility. Someone closer to retirement may prefer a larger infrastructure allocation, while a younger investor may lean further towards growth.

Foolish Takeaway

A three-investment portfolio places more responsibility on every holding, so I would choose each one carefully and resist the temptation to keep adding shares without a clear reason.

This structure would give me access to established global businesses, essential Australian assets, and a company still building towards a much larger opportunity.

It would remain simple enough to follow, while offering several ways for wealth to grow over the years ahead.

The post How I would build an ASX portfolio with just 3 investments appeared first on The Motley Fool Australia.

The attractiveness of some investments may have changed in the last few months following the Federal budget. Property investors who buy an established residential property can no longer benefit from negative gearing (the losses are carried forward until the property makes a profit), though buyers of new builds can still make use of negative gearing.

The outlook for sizeable capital gains for residential property looks challenging in the short to medium term.

In my view, there are three areas that still make a lot of sense for investors.

Commercial property

Residential properties may have been impacted, but commercial property looks as attractive as ever to me. Commercial properties are normally positively geared, which is great for investor cash flow.

However, I'm not looking to become a property manager. Instead, I believe that high-quality real estate investment trusts (REITs) are a great option to invest my money because I can buy a stake in a portfolio of properties in a single transaction.

Names like Centuria Industrial REIT (ASX: CIP), Dexus Industria REIT (ASX: DXI), Charter Hall Long WALE REIT (ASX: CLW) and Rural Funds Group (ASX: RFF) offer exposure to quality property portfolios and good distribution yields. As a bonus, they are all trading at large discounts to their last reported net tangible assets (NTA).

High-quality exchange-traded funds

Another area that I think is well worth investing in is exchange-traded funds (ETFs) and listed investment companies (LICs) because of the diversification and returns they can provide over the long-term.

I'd rather invest in international shares than local shares because I'm not sure that ASX blue-chip shares are going to grow earnings materially in the near-term. Major ASX bank shares face headwinds from the property taxation changes, as well as a challenge from Macquarie Group Ltd (ASX: MQG), while African iron ore from new projects could be a headwind for earnings from BHP Group Ltd (ASX: BHP) and Fortescue Ltd (ASX: FMG).

In my view, something like the Vanguard MSCI Index International Shares ETF (ASX: VGS) makes a lot of sense because it provides exposure to well over 1,000 shares from the global share market.

But, given the uncertainty of how various intriguing investment trends will play out – AI, data centres, private credit, the lack of fuel and other resources flowing out of the Middle East, and inflation – I think high-quality businesses are best-suited to these conditions.

Over the long-term, I believe ideas such as VanEck MSCI International Quality ETF (ASX: QUAL) and Betashares Global Quality Leaders ETF (ASX: QLTY) can outperform the wider global share market, so that could be a great place to invest my money.

ASX shares that can grow earnings

The final place that could be a good area to invest is good ASX shares with solid earnings growth potential.

There are plenty of businesses that could deliver pleasing returns over the long-term as they grow their earnings. The ASX is more than just the largest businesses.

I'm thinking of names like Temple & Webster Group Ltd (ASX: TPW), Breville Group Ltd (ASX: BRG), Sigma Healthcare Ltd (ASX: SIG), TechnologyOne Ltd (ASX: TNE), Siteminder Ltd (ASX: SDR), L1 Group Ltd (ASX: L1G), Lovisa Holdings Ltd (ASX: LOV), Wesfarmers Ltd (ASX: WES) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

These aren't the only names I'd buy to invest my money for my portfolio, there are plenty of exciting options!

The post How should I invest my money in FY27? appeared first on The Motley Fool Australia.

The ASX is a great share market, but I think businesses like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are now such large, mature businesses that they may struggle to deliver huge earnings growth from here.

International businesses seem to have a much better growth outlook, in my opinion.

VanEck MSCI International Quality ETF (ASX: QUAL)

If I'm going to invest in international shares from the global share market, why not choose a portfolio based on the highest-quality stocks you can find?

There are approximately 300 global businesses inside of this portfolio, with all of them being rated strongly across three quality metrics.

Firstly, they should have a high return on equity (ROE). That means they make a high level of profit for how much shareholder money is retained within the business.

Secondly, they have strong earnings stability. It's compelling if a company's profit rarely goes down. Rising earnings is good for a growing share price!

Third, the QUAL ETF invests only in businesses with low financial leverage. Low debt levels are a sign of a healthy business.

When you put all of those aspects together, you're left with a compelling list of businesses in the ASX ETF, in my opinion. Past performance is not a guarantee of future performance, but this fund has performed strongly.

When great businesses can reinvest retained profits at high returns (high ROE), it makes it very easy to grow earnings and drive valuation higher.

Over the past five years, the QUAL ETF has returned an average of 13.5% per year. That's a great level of return, in my view, and I'm confident about future long-term returns.

WCM Quality Global Growth Fund (ASX: WCMQ)

The other ASX ETF I want to highlight is the WCMQ ETF. This is a fund operated by WCM, a California-based fund manager.

This investment team are also looking for high-quality ideas, with the portfolio owning stocks from across the world. In my view, it's more diversified than the typical global share market indices because only 55% of the portfolio is from the Americas.

WCM is looking for high-quality companies with improving economic moats (competitive advantages) and a corporate culture that fosters improvements to their economic moats.

One of the main benefits of this ASX ETF is its target distribution yield of at least 5%. That's a solid level of passive income compared with many ASX dividend shares.

The distribution income is just part of the overall return, which has been impressive, in my opinion. Of course, past performance is not a guarantee of future returns, but the WCMQ ETF has averaged 13.1% per year (after fees) over the past five years.

The post 2 amazing ASX ETFs I'd buy in July appeared first on The Motley Fool Australia.

While most Australians already have significant exposure to local shares through their super funds, I would build a portfolio that leans more heavily towards global markets while still maintaining a meaningful allocation to Australia.

The goal would be simple: diversify across regions, gain exposure to world-class businesses, and create a portfolio capable of compounding wealth over decades.

Here's how I'd do it.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This Vanguard ETF would be the foundation of the portfolio. The fund provides exposure to more than 1,000 large and mid-sized companies across developed markets, including the United States, Europe, Japan, Canada, and the United Kingdom.

Its largest holdings include Microsoft Corp (NASDAQ: MSFT), Apple Inc (NASDAQ: AAPL), and NVIDIA Corp (NASDAQ: NVDA).

I would make VGS the largest position in the retirement portfolio with 35%, because it provides broad diversification and exposure to many of the world's strongest companies and economies.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

BetaShares Nasdaq 100 ETF would add a dedicated growth component to the retirement portfolio and the allocation would be 25%.

The ETF tracks the Nasdaq-100 Index and provides concentrated exposure to many of the world's leading technology and innovation businesses.

Its biggest holdings include Microsoft, NVIDIA, Apple, and Alphabet Inc (NASDAQ: GOOG).

While there is some overlap with VGS, I believe the world's leading technology companies remain among the most powerful long-term wealth creators. NDQ increases exposure to that theme and adds extra growth potential to the portfolio.

BetaShares Australia 200 ETF (ASX: A200)

BetaShares Australia 200 ETF would provide home-market exposure.

The ETF tracks Australia's 200 largest listed companies, with major holdings including Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).

Most investors already have substantial Australian exposure through superannuation. That's why I wouldn't allocate more than 20% of the ETF retirement portfolio to local shares.

However, Australia remains home to many high-quality businesses and some attractive dividend opportunities, making a modest allocation sensible.

VanEck MSCI International Quality ETF (ASX: QUAL)

This VanEck ETF focuses on high-quality global businesses with strong balance sheets, high returns on equity, and consistent earnings growth.

Top holdings typically include companies such as Microsoft, Apple, NVIDIA, and other global leaders.

This ETF adds a quality tilt to the retirement portfolio, and I would invest 10% in the fund. While broad-market funds own thousands of companies, QUAL deliberately targets businesses with stronger financial characteristics, which can help improve portfolio resilience over the long term.

Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)

The Vanguard FTSE Emerging Markets Shares ETF provides exposure to emerging economies such as China, India, Taiwan, Brazil, and South Korea.

Its major holdings include Taiwan Semiconductor Manufacturing Co Ltd (FRA: TSFA) and other leading businesses benefiting from rising incomes and economic development.

Emerging markets can be more volatile than developed markets, but they also offer access to faster-growing economies and expanding consumer markets.

A modest allocation of 10% adds diversification and gives the retirement portfolio exposure to growth opportunities that many Australian investors may otherwise miss.

The post The retirement ETF portfolio I'd add to super appeared first on The Motley Fool Australia.

The ex-dividend date for the distributions listed below is next Wednesday, 1 July. The record date is 2 July.

The indicative payment date for most of these ETFs is 27 July.

There are some absolute whopper dividends available for investors who own or buy these ASX ETFs before their ex-dividend dates.

Let's take a look.

How does a 14% to 16% dividend yield in a single payment sound?

The stand-out is VanEck Morningstar Wide Moat (AUD Hedged) ETF (ASX: MHOT), which will pay $20.54 per unit.

That's not a typo.

Today, the MHOT ETF is $138.40 per unit, which means this next distribution, on its own, represents a 14.8% dividend yield.

Let's just take a moment to let that soak in.

Also paying a massive dividend this time around is VanEck Gold Miners ETF (ASX: GDX).

GDX ETF will pay $17.99 per unit.

At the time of writing, ASX GDX is $111.09 per unit, which means the next dividend represents a 16.2% yield.

Why are these payments so big?

In the case of MHOT, this next dividend is the fruits of mainly US companies with major competitive advantages (moats), benefiting from a record-high market, turbocharged by the US dollar's weakness against an ascendant Aussie dollar this year.

In the case of GDX, the dividend is the result of miners' supercharged earnings from a skyrocketing gold price over the past two years.

Other dividends for VanEck ASX ETF investors

Here is a condensed list of estimated distributions that VanEck will pay ASX ETF investors on 27 July.

VanEck Morningstar Wide Moat ETF (ASX: MOAT) will pay $11.61 per unit.

The VanEck MSCI International Value ETF (ASX: VLUE) will pay $6.65 per unit.

VanEck MSCI Multifactor Emerging Markets Equity ETF (ASX: EMKT) will pay $4.64 per unit. 

The VanEck Morningstar International Wide Moat ETF (ASX: GOAT) will pay $2.68 per unit.

VanEck MSCI International Quality ETF (ASX: QUAL) will pay $2.16 per unit.

The VanEck Video Gaming and Esports ETF (ASX: ESPO) will pay $1.93 per unit.

VanEck Global Defence ETF (ASX: DFND) will pay $1.20 per unit. 

The VanEck FTSE China A50 ETF (ASX: CETF) will pay $1.19 per unit.

VanEck MSCI International Sustainable Equity ETF (ASX: ESGI) will pay $1.02 per unit.

But wait, there's more!

VanEck Australian Property ETF (ASX: MVA) will pay 79 cents per unit.

The VanEck MSCI Australian Sustainable Equity ETF (ASX: GRNV) will pay 65 cents per unit.

The VanEck Australian Resources ETF (ASX: MVR) will pay 56 cents per unit.

VanEck Small Companies Masters ETF (ASX: MVS) will pay 27 cents per unit.

The VanEck Australian Banks ETF (ASX: MVB) will pay 15 cents per unit.

VanEck MSCI International Small Companies Quality ETF (ASX: QSML) will pay 13 cents per unit.

The VanEck 5-10 Year Australian Government Bond ETF (ASX: 5GOV) will pay 12 cents per unit.

VanEck Global Clean Energy ETF (ASX: CLNE) will pay 7 cents per unit.

The VanEck Global Healthcare Leaders ETF (ASX: HLTH) will pay 4 cents per unit.

The post Own GDX, MOAT, or ESPO? VanEck just announced ASX ETF dividends appeared first on The Motley Fool Australia.

If exchange traded funds (ETFs) are on your shopping list and you have $5,000 to invest, then it could be worth checking out these three ASX ETFs listed below. Here's what they offer:

Betashares S&P/ASX Australian Technology ETF (ASX: ATEC)

The first ASX ETF to look at is the Betashares S&P/ASX Australian Technology ETF.

This fund gives investors exposure to Australia's technology sector in one trade.

That makes it quite different from many local share market funds, which are often dominated by banks, miners, supermarkets, and large industrial companies.

The Betashares S&P/ASX Australian Technology ETF opens the door to businesses that are helping digitise the economy. That can include software companies, online marketplaces, data-driven businesses, and technology-enabled platforms.

Australia has produced several impressive technology companies, and the market could produce more as businesses continue shifting processes, payments, data, and customer interactions online.

For investors who want local exposure but do not want another fund shaped mainly by traditional blue chips, it could offer something different.

VanEck Global Defence ETF (ASX: DFND)

Another ASX ETF that could be worth considering is the VanEck Global Defence ETF.

This fund gives investors exposure to listed global companies involved in the defence industry.

The investment case here is not built around a short-term market fad. Defence spending is being shaped by geopolitical tension, military modernisation, cybersecurity needs, supply chain security, and the push by governments to strengthen national capability.

That can create long-term demand for companies involved in aerospace, defence systems, communications, surveillance, naval technology, and related equipment.

This is a more specialised ETF, so it should be expected to move differently from a broad market fund.

As a result, it may appeal to investors who believe defence will remain a strategic priority for governments over the next decade. However, it also comes with sector concentration risk, as performance will be tied closely to spending cycles, contracts, policy decisions, and global security conditions.

VanEck MSCI International Quality ETF (ASX: QUAL)

A third ASX ETF to dig deeper into is the VanEck MSCI International Quality ETF.

This fund is designed for investors who want global exposure but with a quality filter.

It focuses on international companies with stronger financial characteristics. That can mean businesses with solid profitability, healthier balance sheets, and more dependable earnings profiles.

That quality screen can be useful when markets are uncertain. Companies with strong financial foundations often have more flexibility. They can keep investing, protect margins, and manage harder conditions without being forced into short-term decisions.

All in all, it could be a strong option for investors wanting international diversification with a quality focus.

The post Where to invest $5,000 in ASX ETFs in July appeared first on The Motley Fool Australia.

That is why ASX exchange traded funds (ETFs) can be useful. They give investors access to powerful long-term themes, quality companies, and broad diversification without needing to pick every winner.

Here are 10 ASX ETFs worth considering for the next decade:

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF gives investors exposure to many of the companies shaping the digital economy. This includes everything from cloud computing and chips to software, platforms, and artificial intelligence (AI).

Betashares Global Cybersecurity ETF (ASX: HACK)

The Betashares Global Cybersecurity ETF invests in the cybersecurity companies protecting the modern economy's digital plumbing, where security spending is becoming a core operating cost rather than an optional upgrade.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF offers a simple way to own a slice of corporate America. It includes 500 of the largest companies on Wall Street. Many have global brands, deep capital, and decades of reinvention behind them.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF looks for US companies with strong business defences and valuation support. This means easy access to a portfolio built around durability rather than market size alone.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

The Betashares Global Cash Flow Kings ETF focuses on businesses that turn operations into real cash. This can support reinvestment, debt reduction, dividends, and long-term resilience.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF provides exposure to Asian technology leaders. It gives investors access to the region's semiconductor, ecommerce, gaming, and digital platform ecosystems.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

The VanEck Video Gaming and Esports ETF taps into interactive entertainment, where gaming has become a major form of global media, social connection, and consumer spending.

VanEck MSCI International Quality ETF (ASX: QUAL)

The VanEck MSCI International Quality ETF targets global companies with attractive financial characteristics. This includes strong profitability, healthy balance sheets, and the ability to keep compounding through changing conditions.

Vanguard Australian Shares Index ETF (ASX: VAS)

The Vanguard Australian Shares Index ETF gives investors broad exposure to the local market. This includes the big four banks, mining giants, healthcare companies, retailers, infrastructure, and industrial businesses.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Finally, the Betashares Global Robotics and Artificial Intelligence ETF invests in companies helping machines do more work. This includes companies focused on robotics, automation, sensors, software, and artificial intelligence.

Together, these ASX ETFs give investors exposure to quality, technology, automation, cybersecurity, global markets, and Australia's own corporate leaders. That could make them strong long-term options for a decade-long portfolio.

The post 10 amazing ASX ETFs for the next decade appeared first on The Motley Fool Australia.

Well, ASX exchange traded funds (ETFs) could be worth considering. They offer a simple way to gain exposure to high-quality companies without having to pick every share yourself.

Here are five ASX ETFs that could be worth considering.

iShares S&P 500 AUD ETF (ASX: IVV)

The iShares S&P 500 AUD ETF could be worth considering.

This fund gives investors exposure to the S&P 500 index, which includes many of the largest listed companies in the United States.

That makes it a simple way to buy into the American stock market through one ASX trade. It provides exposure to technology leaders, healthcare giants, financial companies, consumer brands, and industrial businesses.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

Another ASX ETF that could be worth considering is the Betashares Global Cash Flow Kings ETF.

This fund focuses on global companies that generate strong free cash flow.

Free cash flow generation is important because it gives businesses flexibility. Companies that produce plenty of cash can reinvest, strengthen their balance sheets, buy back shares, pay dividends, or fund acquisitions.

It is a practical quality filter. Rather than chasing companies with exciting stories but weak financials, this fund looks for businesses that are already turning their operations into real cash.

It was recently recommended by analysts at Betashares.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

A third ASX ETF to consider is the VanEck Morningstar Wide Moat ETF.

This fund also takes a selective approach to US shares. Instead of owning the market purely by size, it looks for companies that have strong competitive positions and are trading at attractive valuations.

That can lead to a different portfolio from a standard US index fund. It tends to include companies with powerful brands, valuable assets, strong customer relationships, or business models that are difficult to copy.

Betashares Australian Quality ETF (ASX: AQLT)

The Betashares Australian Quality ETF is another option for investors to consider.

The Australian market can be heavily influenced by banks, miners, and a small group of large companies. This ETF applies a quality screen, which can help shift the focus toward businesses with stronger financial characteristics.

That may include companies with healthier balance sheets, better profitability, and more consistent earnings.

For investors wanting Australian exposure without simply buying the largest names, this fund could be a top choice. It was also recently recommended by the team at Betashares.

VanEck MSCI International Quality ETF (ASX: QUAL)

A final ASX ETF for investors to look at is the VanEck MSCI International Quality ETF.

This fund invests in international companies with quality characteristics such as strong profitability, lower debt, and resilient earnings.

That gives investors exposure to global businesses that may be better placed to handle changing market conditions.

It will still rise and fall with global share markets, but its quality filter could help investors focus on companies with the financial strength to keep compounding over time.

This fund was recently recommended by analysts at VanEck.

The post 5 high-quality ASX ETFs to buy with $5,000 appeared first on The Motley Fool Australia.

That is where exchange traded funds (ETFs) can help.

In a single ASX trade, investors can gain exposure to global technology leaders, Asian digital giants, or high-quality international companies with strong financial profiles.

With that in mind, here are three ASX ETFs that could be worth a closer look.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The first ASX ETF to look at is the Betashares Nasdaq 100 ETF.

This fund allows investors to own a slice of the companies building the modern digital economy. Its holdings include NVIDIA (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT).

Microsoft is a good example of why this fund remains so relevant. The company is no longer just about Windows and Office. It now sits across cloud computing, enterprise software, cybersecurity, gaming, workplace productivity, and artificial intelligence.

Its products are deeply embedded in businesses around the world, which gives it a powerful position as companies keep digitising their operations.

This ETF can be volatile because it is heavily exposed to technology and growth shares. But for investors wanting access to global businesses that are shaping how people work, communicate, consume media, and use AI, it offers a simple route into the Nasdaq's biggest names.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

Another ASX ETF that could appeal to investors looking for global winners is the Betashares Asia Technology Tigers ETF.

This fund focuses on leading technology and online retail companies across Asia excluding Japan. Its holdings include SK Hynix (NYSE: JNSB), Samsung Electronics (FRA: SSU), and Taiwan Semiconductor Manufacturing (NYSE: TSM).

SK Hynix is a particularly interesting holding. The South Korean memory giant has become increasingly important as demand grows for high-performance memory used in artificial intelligence, data centres, and advanced computing.

That gives the fund a different flavour from many US-focused technology ETFs. It is not only about software platforms and digital advertising. It also provides exposure to the hardware, semiconductors, and supply chains that support the next wave of global technology growth.

VanEck MSCI International Quality ETF (ASX: QUAL)

A third ASX ETF to look at is the VanEck MSCI International Quality ETF.

This fund takes a different approach. Rather than simply buying the biggest global companies, it focuses on international shares that boast quality characteristics such as strong profitability, low leverage, and resilient earnings.

Its holdings include Cadence Design Systems (NASDAQ: CDNS), Airbus (ETR: AIR), and Broadcom (NASDAQ: AVGO).

Cadence is a useful example of the type of company this fund can hold. It provides electronic design automation software used by semiconductor and electronics companies to design complex chips and systems.

As chips become more advanced, the software used to design them becomes increasingly important. That gives Cadence exposure to long-term growth in areas such as artificial intelligence, automotive technology, cloud infrastructure, and connected devices.

Overall, this focus on financially strong global businesses could potentially make it a top option for investors wanting international exposure with a quality filter.

The post 3 ASX ETFs for investors who want global winners appeared first on The Motley Fool Australia.

Being able to invest in a single transaction and get exposure to a wide range of businesses is very compelling, in my opinion.

But, there are so many options, which one to buy? I think it depends on an investor's goals.

Simple ASX ETF investing

For investors who just want a very simple investment strategy that can help grow wealth passively in the background without needing to monitor it. There are plenty of possible ASX ETFs.

Aussies can get the return of the share market for very little cost by choosing one of the cheapest ones.

I really like the Vanguard MSCI Index International Shares ETF (ASX: VGS) because it invests in more than 1,000 businesses worldwide. Over time, global businesses are collectively growing profits, supporting long-term share price growth.

Over the past 10 years, the VGS has returned an average of 13.5% per year. Past performance is not a guarantee of future returns, of course, but it has been an excellent long-term investment.

High-quality

Some investors may not want to own thousands of businesses across the global share market. What about just investing in the best ones?

There are a variety of options that aim to invest in the highest-quality businesses. One of my favourites is the VanEck MSCI International Quality ETF (ASX: QUAL) – it invests in 300 of the highest-quality global businesses, as measured by quality metrics.

High-quality businesses can perform better during downturns and over the long term. In the last decade, it has returned an average of 14.6% per year.

Technology

Over the last 20 years, tech businesses have been some of the strongest-performing investments. With the current trajectory of many large tech companies and their strong profit margins, investors may want targeted exposure to the exciting sector.

One of the best options for a tech allocation, in my opinion, is the Betashares Nasdaq 100 ETF (ASX: NDQ) – that's 100 of the biggest tech businesses listed in the US.

It's important to remember that past performance is not a reliable indicator of future performance. Having said that, it has returned an average of 19.2% per year in the past five years.

Passive investing

ASX ETFs can be an excellent way for investors to unlock passive income. Many funds don't have high dividend yields because the underlying businesses themselves don't have much dividend yield.

But some funds deliberately target higher-yielding businesses, while some ASX ETFs can provide a pleasing dividend yield.  

The WCM Quality Global Growth Fund (ASX: WCMQ) invests in a high-quality portfolio of global shares with strengthening economic moats and corporate cultures that support those competitive advantages. The fund aims to deliver a 5% distribution yield to investors.

One of the ASX's most appealing options for passive income is Vanguard Australian Shares High Yield ETF (ASX: VHY). It looks to invest in just the higher-yielding ASX shares.

In my view, a good ASX ETF is a great investment, though it is not the only effective investment.

The post Which ASX ETF should I buy? appeared first on The Motley Fool Australia.

But over long periods, regular investing can become surprisingly powerful.

For example, if an investor put $500 a month into the share market and achieved an average annual return of 10%, they could build a portfolio worth more than $1 million after 30 years.

That return is not guaranteed, but it is largely in line with historical averages, so could be possible.

With that in mind, here are three ASX exchange traded funds (ETFs) that could help investors build serious wealth over the long term.

Betashares Australian Quality ETF (ASX: AQLT)

The first ASX ETF for investors to look at is the Betashares Australian Quality ETF.

This fund gives investors exposure to a portfolio of high-quality Australian companies, selected using measures such as profitability, balance sheet strength, and earnings stability.

That makes it a different way to invest in the local market. Rather than simply leaning into the largest companies on the ASX, the fund applies a quality screen to find businesses with stronger financial characteristics.

Holdings include BHP Group Ltd (ASX: BHP), Telstra Group Ltd (ASX: TLS), and Wesfarmers Ltd (ASX: WES).

This mix gives investors exposure to resources, telecommunications, retail, financials, and other parts of the Australian economy, but with a focus on companies that meet the fund's quality criteria.

For someone investing $500 a month, that discipline could be useful. It provides local market exposure while avoiding the need to decide which individual ASX blue chip deserves the next dollar. It was recently recommended by the team at Betashares.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

Another ASX ETF that could be worth considering for a $500 investment is the Betashares Global Cash Flow Kings ETF.

This fund is built around free cash flow. In simple terms, it looks for global companies that are good at generating surplus cash from their operations.

That is a powerful trait. Companies producing strong free cash flow can fund expansion, reduce debt, buy back shares, pay dividends, or keep investing when weaker competitors are under pressure.

Its holdings include NVIDIA (NASDAQ: NVDA), ASML Holding (NASDAQ: ASML), and Visa (NYSE: V).

What makes this fund interesting is that it is not just chasing growth for growth's sake. It is looking for businesses with financial firepower. Over long periods, companies that consistently generate cash can have more options and more resilience.

It was also recently recommended by the team at Betashares.

VanEck MSCI International Quality ETF (ASX: QUAL)

A final ASX ETF for investors to consider buying is the VanEck MSCI International Quality ETF.

This fund gives investors exposure to global companies with quality characteristics, including strong returns on equity, stable earnings, and low financial leverage.

Its holdings include Broadcom (NASDAQ: AVGO), Microsoft (NASDAQ: MSFT), and Eli Lilly and Co (NYSE: LLY).

These are businesses operating in areas such as semiconductors, enterprise software, cloud computing, healthcare, and consumer technology. Many have strong competitive positions and the financial strength to keep investing through different market conditions.

Quality companies can be well placed to compound over time because they tend to have stronger margins, better balance sheets, and more durable earnings.

Used consistently, month after month, this type of ETF could help turn small regular investments into a much larger portfolio over the long run.

The team at VanEck has recommended this fund to clients.

The post 3 ASX ETFs that could turn $500 a month into serious wealth appeared first on The Motley Fool Australia.

The two funds I want to highlight can be good options for both reaching towards retirement and when Aussies are actually in retirement.

They're both focused on high-quality businesses from the global share market, which I think means they're very compelling to own for long-term returns. Let's dive into the appeal of both of them and how I'd use them.

VanEck MSCI International Quality ETF (ASX: QUAL)

The QUAL ETF invests in a portfolio of approximately 300 global companies across a range of regions, sectors and countries.

There are three fundamentals that a business must rank well on to be chosen for the portfolio.

First, they must have a high return on equity (ROE). That means they earn a high level of profit for how much shareholder money is retained within the business. It also suggests to me that the business can earn a good return on any future additional retained earnings.

Second, they have a high level of earnings stability. If profits aren't going backwards then they're regularly rising – that's a strong tailwind for long-term share price growth, as well as relative stability during recessions.

Third, the businesses must have low financial leverage. In other words, they don't have much debt for their size.

When you put all of this together, it's a diversified fund of high-quality businesses that I'm expecting to deliver ongoing earnings growth.

In the past 10 years, the QUAL ETF has returned an average of 15% per year.

Betashares Global Quality Leaders ETF (ASX: QLTY)

This ASX ETF is constructed using a similar investment strategy as the QUAL ETF.

The QLTY ETF looks to invest in a portfolio of 150 global companies ranked by the highest quality score.

There are four factors that are used to decide on the QLTY ETF's holdings – ROE, debt to capital, earnings stability and cash flow generation. Ensuring profit generation turns into cash flow is a useful metric.

While the QLTY ETF has fewer holdings than the QUAL ETF, its allocation between its positions are more evenly spread, which is also a good form of diversification.

While the inception date of the ASX ETF was November 2018, the strategy it follows has been running for longer. In the past 10 years, the index the QLTY ETF follows has returned an average of 14%.

How I'd use these funds for retirement

Past performance is not a guarantee of future returns of course, but both ASX ETFs have delivered very good returns. If the net returns are similar for the next 10 years, that'd be great for building wealth at a quick pace.

Neither of these funds are known for having a high dividend yield because the underlying holdings don't have a high yield themselves.

But, we can sell a portion of our holding each year to generate pleasing returns.

For example, imagine having $100,000 invested in the QUAL ETF and over the next 12 months it could rise by 10%, taking the capital value to $110,000. The investor could decide to sell $5,000 of units – a 5% 'yield' on the initial $100,000 – and still be left $105,000. That's good cash flow and capital growth, a winning combination for retirement, in my opinion.

The post Which ASX ETFs I'd buy for retirement investing appeared first on The Motley Fool Australia.

The challenge is working out how to do it.

Investors can try to pick individual companies with strong brands, high returns, pricing power, and durable competitive advantages. But that takes time, confidence, and plenty of research.

That is why I think exchange-traded funds (ETFs) can be useful.

Two quality ASX ETFs that stand out to me are the VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT) and the VanEck MSCI International Quality ETF (ASX: QUAL).

I rate both as buys. But if I had to choose only one today, there is a winner.

The case for the QUAL ETF

The QUAL ETF has been an excellent performer.

Over the past decade, it has delivered an average total return of 14.95% per annum. That is a very strong result.

The fund focuses on international companies with quality characteristics. These include strong returns on equity, stable earnings, and relatively low financial leverage.

I like that approach because it screens for businesses that have already shown financial discipline and resilience.

This can be a good way to invest globally without simply buying every large company in an index. The QUAL ETF is trying to tilt towards companies with stronger balance sheets, more consistent earnings, and higher profitability.

That makes sense to me. The global share market includes plenty of businesses I would not want to own. Some are too cyclical, too indebted, or too inconsistent. A quality screen helps narrow the field.

Overall, I think this is one of the best ASX ETFs for investors seeking exposure to world-class companies.

The case for the MOAT ETF

The VanEck Morningstar Wide Moat AUD ETF has also produced an impressive long-term result.

Over the past decade, it has delivered an average total return of 13.9% per annum. That is slightly behind the QUAL ETF, but still excellent.

The reason I like the MOAT ETF is the philosophy behind it. This ETF invests in US companies that have sustainable competitive advantages and are trading at attractive prices compared with the estimate of fair value.

In simple terms, it is trying to buy good businesses at reasonable prices.

That is very appealing to me because it has a Warren Buffett-style feel. Buffett has long focused on businesses with durable competitive advantages, or moats, and has also cared deeply about the price paid.

This MOAT ETF gives investors a simple way to apply a version of that idea through an ASX ETF.

I like that it is not just chasing the biggest companies or the most popular themes. It is trying to find companies with strong long-term economics while still paying attention to valuation.

Which would I buy?

This is a close call. The VanEck MSCI International Quality ETF has the stronger 10-year performance, and I would be very happy to own it. It is a clean, sensible way to gain exposure to global quality companies.

But if I had to choose one today, I would buy the VanEck Morningstar Wide Moat AUD ETF.

The reason is not that I think the QUAL ETF is weak. I just like the MOAT ETF's combination of quality and valuation more at this point.

A quality company can still be a poor investment if the price is too high. The VanEck Morningstar Wide Moat AUD ETF's process gives more weight to that idea by focusing on wide-moat businesses that look attractively priced.

That does not guarantee outperformance. No ETF can do that. But it gives the fund a discipline that I find appealing.

Foolish takeaway

I think both ETFs deserve attention from long-term investors.

The QUAL ETF has done better over the past decade, and its quality screen remains attractive. But investing is not only about looking in the rear-view mirror.

For me, the MOAT ETF edges ahead because it lines up more closely with how I like to think about investing: own strong businesses, but do not forget the price.

The post MOAT vs QUAL: Which quality ASX ETF would I buy today? appeared first on The Motley Fool Australia.

By regularly saving and putting money to work, investors can end up with a much larger pot of money compared to how much they put in.

Just having money in a high interest savings account can make a big difference.

Putting $100 per month under the mattress for ten years would be $12,000. According to the Moneysmart compound interest calculator, if the money earned a 5% interest rate, it'd be just over $15,000 – an extra $3,000, or an extra 25% in percentage terms!

That's just putting the money into a bank account.

What about if the money had been invested in the share market and achieved the ultra-long-term return of 10% per year? That same $100 per month for 10 years would turn into $19,125.

That's not $1 million though.

How someone on a $70,000 salary can become a millionaire

The cost of living certainly makes it harder to save when the essentials are more expensive. I won't suggest that someone earning $70,000 will have significant room to invest each month, though that's certainly possible for someone in a dual income household.

What if we assume that someone could save $1,000 per month and it earned an average of 10% per year over the long-term. Remember, there could be a decline in some years – that's why it's an average return.

In that scenario, an investor would have $191,000 after 10 years, $687,000 after 20 years and $1.06 million after 24 years. The last few years see significant progress because of compounding – if $900,000 grows by 10% that's a $90,000 increase.

But, perhaps most importantly towards wealth-building is superannuation. The tax-efficient, mandatory system for retirement savings. Someone on an annual salary would contribute just under $5,000 (after the tax on the contributions) to their superannuation fund.

Adding in the superannuation would help shave a few years off reaching millionaire status.

If that Australian were just relying on mandatory superannuation contributions alone, and assuming they invest in an investment option (such as shares) that could return an average of around 10% per year, they'd get there in 32 years. Investment returns (after tax) will play an important role in how quickly that grows.

In my view, the future looks very bright for Aussies who regularly contribute money towards their wealth and invest in long-term, compounding options. Ideas like VanEck MSCI International Quality ETF (ASX: QUAL), Vanguard MSCI Index International Shares ETF (ASX: VGS) and excellent ASX growth shares are some of the names I look at to invest in for long-term returns.

The post How to become a millionaire on a $70,000 salary appeared first on The Motley Fool Australia.

There are thousands of companies to choose from, and many Australian investors may not have the time or interest to closely follow overseas businesses.

That is where exchange-traded funds (ETFs) can help.

One ASX ETF I think could be a simple way to own a portfolio of high-quality global shares is named in this article.

VanEck MSCI International Quality ETF (ASX: QUAL)

The VanEck MSCI International Quality ETF is one of my preferred ASX ETFs for global exposure.

This fund does not simply buy the biggest companies in the world. It focuses on businesses with quality characteristics, including strong returns on equity, earnings stability, and lower financial leverage.

I like that approach because not every large company is a great business.

Some businesses are highly cyclical. Others rely too heavily on debt. Some have inconsistent earnings or operate in sectors where returns can move around sharply.

A quality filter helps narrow the field. The QUAL ETF gives investors exposure to global companies that have already proven they can generate attractive financial results.

Its holdings currently include world-class names such as Nvidia, Apple, and Microsoft.

But I do not just like the fund because of the famous names.

I like it because it gives investors a rules-based way to own global companies with strong financial traits without needing to decide which one will win next. That is useful because even great businesses can go through periods of weaker performance.

For Australian investors, this ASX ETF can also help balance a portfolio.

The ASX is heavily exposed to banks, miners, supermarkets, infrastructure, and property. Those sectors can be good, but they do not give investors the same access to global technology, healthcare, software, consumer brands, and industrial leaders.

The QUAL ETF can fill some of that gap.

The management fee is higher than that of a basic index ETF, so investors need to be comfortable paying more for the quality screen. There is also no guarantee that quality shares will outperform every year.

In some markets, cheaper cyclical shares or more speculative growth stocks may do better.

But over the long term, I think owning financially strong global businesses is a sensible strategy. Companies with durable profitability and resilient earnings can be very powerful compounders when given enough time.

Foolish Takeaway

I think investing globally is a great thing for a portfolio.

The hard part is building a portfolio that can survive different market conditions and still compound over time.

That is why I like the QUAL ETF. It is not trying to be the flashiest ETF on the ASX. It is trying to give investors access to global quality in a disciplined way.

For a long-term portfolio, I think that can be a very useful building block.

The post Could this ASX ETF be the easiest way to invest in global quality? appeared first on The Motley Fool Australia.