3 of the best ETFs on the ASX

These 3 ETFs could be some of the best options on the ASX.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There has been a big rise in the popularity of exchange-traded funds (ETFs) in recent years. There's nothing fundamentally wrong with passive investing if you take an ultra-long-term approach and don't sell on market weakness.

If you just own a low-cost (compared to fund managers), quality ETF for the long-term then you can outperform a majority of investors because of the small fees and quality holdings.

Here are three of my favourite ETFs:

BetaShares Global Agriculture ETF (ASX: FOOD)

This is an ETF that looks to give investors exposure to some of the best food-related businesses in the world. I think this could be a good opportunity because the global population is expected to continue growing and this will make food more valuable as it may be difficult for food exporting countries to continue growing production to match the demand.

Some of its top holdings include Deere & Co, Archer Daniels Midland, Kubota, Tyson Foods, WH Group and Associated British Foods.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

This is one of the broadest ETFs on the ASX. Not only does it have over 1,500 holdings but it has investments spread across many countries like Japan, the UK, France, Germany, Canada, Switzerland, Hong Kong, the Netherlands, Spain and so on.

The diversification offered by Vanguard is really good and over the long-term (think decades) this ETF should produce quite pleasing results. It could be one of the best ways to invest in the global share market. Its largest holdings are Apple, Microsoft, Alphabet (Google) and Facebook.

Betashares Global Cybersecurity ETF (ASX: HACK)

This is an ETF that gives exposure to some of largest cybersecurity firms in the world. There is a growing trend of cyber attacks because more of a company's value and intellectual property is held on computers these days. I'm talking about things like software, databases, product design and so on. These are great targets for a hacker.

Its top holdings include Palo Alto Networks, Akamai Technologies, VMware, Cisco Systems and Symantec.

Foolish takeaway

I'd be very happy to own all three ETFs in my portfolio. I don't own any ETFs yet but there's a good chance I will have the FOOD ETF and the Vanguard in my portfolio at some point down the road, I'm just waiting for the overall market's valuation to become a bit more attractive.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »