I think exchange-traded funds (ETFs) are something that any ASX investor can get amongst. There are ETFs for virtually everything these days. Whether you want hefty dividends, exposure to fringe, high-growth biotech stocks, or a healthy mix of everything, there's an ETF for that.
But which ETF to choose from the hundreds of options out there?
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3 ASX ETFs every investor should consider today
BetaShares Nasdaq 100 ETF (ASX: NDQ)
This ETF from BetaShares tracks the largest 100 companies on the Nasdaq exchange over in the United States. The Nasdaq is the exchange that most tech companies list on in the US. As such, this ETF is heavily tilted towards the tech sector. You'll probably be familiar with its largest holdings, companies like Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT) and Amazon.com Inc. (NASDAQ: AMZN). It also holds substantial weightings in some other growth favourites from the US, including NVIDIA Corporation (NASDAQ: NVDA) and Tesla Inc (NASDAQ: TSLA).
Tech is the way of the future, and so I think this ETF is a top choice for any ASX investor wanting to increase their exposure to the sector. NDQ's recent performance has been breathtaking. This ETF has delivered an average return of 28.79% per annum over the past 3 years, and 22.7% p.a. over the past 5. Enough said.
iShares Global Consumer Staples ETF (ASX: IXI)
Turning to a very different beast, IXI tracks an index of global companies involved in the consumer staples sector. Consumer staples may not be as exciting as tech, but the reality is we can't live without the products that consumer staples companies provide. These include food, drinks, household essentials like laundry powder and dishwashing detergent, and vices like alcohol and tobacco.
As such, IXI holds companies like Nestle, Proctor & Gamble, Unilever, Coca-Cola, Philip Morris International and even our own Woolworths Group Ltd (ASX: WOW). In an uncertain world, these are the kinds of companies that can provide the most certainty and stability in my view. No matter the maladies the economy is facing, we're going to be buying these products. Therefore, I think IXI is another top fund that any ASX investor can look at today.
BetaShares Asian Technology Tigers ETF (ASX: ASIA)
Our final ETF returns to the tech theme. But instead of American companies, this ETF tracks some of the best tech shares in Asia. Most of this ETF's holdings reside in China, but you also get some exposure to India, South Korea, Hong Kong and Taiwan. You might know some of ASIA's top holdings, which include Taiwan Semiconductor Manufacturing Co, Tencent Holdings, Samsung, Alibaba Group and JD.com.
Asia is one of the fastest-growing markets in the world, and in the 21st century, I think it would be remiss for investors to ignore it completely. This ETF is an easy way to access some of the best of what Asia has to offer, and therefore I think it is a top choice for any ASX investor today.
This ETF is also a top performer – it's delivered a return of 58.98% in the past year alone. Again, enough said!
