2 ETFs I'd buy in June 2022

I've got my eyes on some leading ETFs that could be opportunities in 2022.

| More on:
A man and woman watch their device screens, making investing decisions at home.

Image source: Getty Images

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

Key points

  • I'd be happy to buy two ETFs for my portfolio next month
  • One choice is the VanEck MSCI International Quality ETF which is full of quality businesses
  • BetaShares Global Sustainability Leaders ETF is a globally-focused portfolio that excludes a number of 'unethical' industries

I think there are plenty of good exchange-traded fund (ETF) opportunities to find on the ASX share market for June 2022.

At times like this, I think it's worth remembering one of the cliché phrases of investing: 'Buy low, sell high'. Investors don't necessarily need to sell when prices go higher. But I do think that when prices are lower, it's good to have a look for potential investments.

Sometimes it can be tricky to know which investment to go for. So, why not pick an ETF?

ETFs allow investors to buy a whole group of shares at once, which is pretty handy for diversification.

With that in mind, I like the look of these two ETFs.

VanEck MSCI International Quality ETF (ASX: QUAL)

This ETF is a portfolio of around 300 international businesses which are rated as quality businesses.

What counts as quality? These businesses should rank well on three factors: return on equity (ROE), stable year-on-year earnings growth, and low financial leverage.

In other words, it's a portfolio of businesses that are consistently growing profit, have low levels of debt, and require a lot of shareholder funds to make a profit.

At the end of April 2022, the biggest positions in the portfolio were familiar names: Apple, Microsoft Corporation, Meta Platforms, Nvidia, Johnson & Johnson, UnitedHealth Group, Alphabet, Visa and Mastercard.

I think that the QUAL ETF is looking much better value after its almost 20% decline in 2022. The 0.4% annual management fee also seems very reasonable to me.

With this portfolio focused on quality, I think it will do well over the longer term, starting from this lower price.

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

This ETF is another one that gives exposure to a portfolio of global names. However, it is different compared to most other options.

BetaShares Global Sustainability Leaders ETF is about investing in a portfolio of "large global companies that meet strict sustainability and ethical standards".

This portfolio excludes a number of industries including fossil fuel producers, armaments, gambling, alcohol and junk foods. Companies also have to be in the top third of performers in terms of 'carbon efficiency' for their industry. Or they must engage in activities that can help reduce carbon use by other industries.

Interestingly, the returns of the ETHI ETF have been solid, in my opinion. However, it's important to note that past performance is not a reliable indicator of future performance. At end of April 2022, the ETHI ETF has returned an average of 17.3% per annum over the last five years. That return compares to an 11.4% return per annum for the widely-used global shares benchmark, the MSCI World ex-Australia Index, over the last five years.

At the latest disclosure, these are some of the biggest holdings: Visa, Home Depot, Apple, Mastercard, Toyota Motor Corp, Nvidia, UnitedHealth Group, Cisco Systems, Adobe and ASML Holding. I think these holdings tick the 'quality' box as well.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Apple, Cisco Systems, Mastercard, Meta Platforms, Inc., Microsoft, Nvidia, and Visa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and has recommended the following options: long January 2024 $420 calls on Adobe Inc., long March 2023 $120 calls on Apple, short January 2024 $430 calls on Adobe Inc., and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Apple, Mastercard, Meta Platforms, Inc., and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

share buyers, investors, happy investors
ETFs

How I would build a $100,000 portfolio with ASX ETFs today

You don't need more than three ETFs to build a diversified portfolio...

Read more »

A young couple sits at their kitchen table looking at documents with a laptop open in front of them while they consider the state of their investments.
ETFs

3 reasons why the Vanguard MSCI Index International Shares ETF (VGS) is a strong long-term buy

I think this ETF is an excellent investment for a few different reasons.

Read more »

Woman with $50 notes in her hand thinking, symbolising dividends.
ETFs

$10,000 invested in DHHF ETF a year ago is now worth…

Has this all-world, all-growth ASX ETF delivered the goods?

Read more »

a man smiles broadly as he holds up five fingers on one hand and two fingers on the other hand.
ETFs

7 excellent ASX ETFs to buy and hold until 2035

When it comes to building long-term wealth, few strategies are as effective — or as simple — as buying high-quality…

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
ETFs

3 strong ASX ETFs for beginners to buy now

Starting your investment journey? Check out these funds.

Read more »

Smiling child playing video game
ETFs

Guess which ASX ETF is up 72% over the past 12 months?

This ASX ETF has been a home run lately.

Read more »

ETFs

Why Betashares Nasdaq 100 ETF and these ASX ETFs could be strong buys

Let's see what makes these funds stand out.

Read more »

The letters ETF sit in orange on top of a chart with a magnifying glass held over the top of it
Dividend Investing

Boosting passive income: With a 7.6% yield, is the YMAX ETF a good option?

Is this ETF's yield too good to be true?

Read more »