Are you looking for exchange traded funds (ETFs) to buy? If you are, then the two listed below could be worth looking at closely.
Here's why experts say these ETFs could be in the buy zone:
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ETFS Battery Tech & Lithium ETF (ASX: ACDC)
If you're interested in gaining exposure to the decarbonisation megatrend, then the ETFS Battery Tech & Lithium ETF could be worth considering.
As its name implies, this ETF gives investors exposure to a number of companies that are involved in battery technology and lithium mining. This includes the likes of BYD, Mineral Resources Limited (ASX: MIN), Nissan and, Pilbara Minerals Ltd (ASX: PLS).
Jessica Amir from Saxo Markets is a fan of the ETF. She believes it could be a good option for investors that aren't keen on stock picking in the lithium industry. Earlier this year she said:
If [lithium] stock picking is not for you, and if you believe, like we do, that the electric vehicle industry and the critical minerals/ commodities will continue to see rising demand, and policy support, and also benefit from the world striving to be carbon neutral by 2050, then you could invest or trade in Global X Lithium & Battery Tech ETF (LIT) or ETFS Battery Tech & Lithium ETF (ACDC) that invests in about 30 of the biggest EV and battery technology companies in the world.
VanEck Vectors MSCI World ex Australia Quality ETF (ASX: QUAL)
If you're interested in bolstering your portfolio with some high quality companies, then it would be hard to look beyond the VanEck Vectors MSCI World ex Australia Quality ETF.
This popular ETF gives investors easy access to a portfolio of high quality shares that are listed outside of Australia. To be included, the companies must have low leverage, high growth rates, and high returns on equity. Among the companies that tick these boxes you will find giants such as Apple, Microsoft, Nike, and Nvidia.
Sarah Gonzales from Apt Wealth is a positive on the ETF in the current environment due to its focus on quality. She recently told Livewire:
My preferred ETF is the VanEck MSCI International Quality ETF. I think it provides exposure to that quality factor, which tends to outperform in market downturns. It does focus on factors like return and equity, year-on-year growth of earnings and also levels of debt. These are proxies for profitability, earnings variability, and the level of debt of companies. Particularly if we are going into a recession, I think these are really the factors that I think we should focus on.
