Market corrections like the one we've just witnessed can be a scary time to hold ASX shares. But it can also be a great time to top up on not just your favourite ASX shares but exchange traded funds (ETFs) as well. ETFs move passively, so usually provide some good investing opportunities if there is a market-wide downturn.
Here are three ASX ETFs at the top of my wish list after last week's market moves.
VanEck Vectors Wide Moat ETF (ASX: MOAT)
MOAT is an ETF that focuses solely on US companies. Not just any companies though. For MOAT to include a holding, it must demonstrate characteristics of a long-term competitive advantage, or 'moat'.
It's no surprise then that some of its current holdings include names like Kellogg, Amazon.com, Nike and McDonald's – all brand leaders in their respective fields.
I think MOAT is a great investing tool to gain access to some of the best companies the US has to offer. It has returned an average of 18.42% over the past five years – quantifying this opinion, in my view.
BetaShares Nasdaq 100 ETF (ASX: NDQ)
This ETF also holds US shares, but instead employs a more passive approach – tracking the largest 100 companies in the Nasdaq index. The Nasdaq is home to most of the biggest tech companies in the US and has amongst its larger holdings Microsoft, Apple, Netflix, Facebook, Tesla and Alphabet (Google).
These are all companies that are shaping the modern world and I think it's a very good idea to get yourself a piece of this action.
The NDQ ETF has returned an average of 19.36% per annum over the past five years.
Vanguard Australian Shares High Yield ETF (ASX: VHY)
Our final ETF is one a little closer to home. VHY tracks a basket of high-yielding ASX dividend shares, most of which also come with fully franked payouts. You'll find the big four banks like Commonwealth Bank of Australia (ASX: CBA) amongst its holdings, as well as other dividend payers like Wesfarmers Ltd (ASX: WES), BHP Group Ltd (ASX: BHP) and Telstra Corporation Ltd (ASX: TLS).
VHY offers a trailing, grossed-up distribution yield of 7.1% at the time of writing, which would have been blown out by last week's market correction. If you want to lock in a healthy stream of diversified dividend income in one easy share, this ETF could be your perfect choice!
