If you're looking for exchange traded funds (ETFs) to buy, then you may want to check out the two listed below.
These ETFs are rated highly by analysts right now and for good reason. Here's what you need to know:
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ETFS Battery Tech & Lithium ETF (ASX: ACDC)
One of the hottest areas of the market this year has been the lithium industry. Despite the market's wobbles, a number of lithium shares have recorded mouth-watering returns for investors.
So, if you're interested in gaining exposure to this booming side of the market, then you could do it with the ETFS Battery Tech & Lithium ETF.
This ETF provides investors with exposure to a range of companies involved in battery technology and lithium mining. This includes AMG Advanced Metallurgical Group, Lockheed Martin, Mineral Resources Limited (ASX: MIN), and Pilbara Minerals Ltd (ASX: PLS).
Jessica Amir from Saxo Markets is a fan of the ETF and suggested that it could be a good way for investors to gain exposure to the decarbonisation megatrend. She said:
[I]f 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)
Another ETF that has been tipped as one to buy is the VanEck Vectors MSCI World ex Australia Quality ETF.
As its name implies, this ETF gives investors access to a group of high quality shares from across the world (but excluding Australia).
To be included in the fund, a company needs to have low leverage, high earnings growth rates, and high returns on equity. A few examples of companies that tick these boxes and are included in the ETF are Apple, Microsoft, Nike, and Nvidia.
Shaw and Partners' Felicity Thomas is positive on this ETF in the current environment. She recently told Livewire:
[F]or me, it's actually a buy. With rising interest rates and the war that's going on in Europe, I actually think it's important to invest in quality companies with high revenue growth and a solid balance sheet, which QUAL provides.
