If you're new to investing and aren't confident picking stocks, then exchange traded funds (ETFs) could be the answer. ETFs allow investors to buy large groups of shares in one fell swoop.
But which ETFs could be buys? Two that are popular and filled with high quality shares are listed below. Here's what you need to know about them:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
The first ETF that could be a buy is BetaShares NASDAQ 100 ETF. This ETF provides investors with access to 100 of the largest (non-financial) companies on the NASDAQ stock exchange.
These are many of the biggest and best companies in the world, with a heavy emphasis on the tech sector. Among the 100 shares included in the ETF are giants such as Amazon, Apple, Meta (Facebook), Microsoft, Netflix, Nvidia, Tesla, and Google parent, Alphabet.
BetaShares notes that this ETF could be a good option for local investors due to its focus on a high-growth potential sector that is under-represented on the Australian sharemarket.
Vanguard US Total Market Shares Index ETF (ASX: VTS)
Another option for investors to consider buying is the Vanguard US Total Market Shares Index ETF.
If you want a more balanced ETF with less of a focus on tech shares, then this ETF could be the one for you. It provides investors access to approximately 3,500 shares listed on the U.S. stock market.
Although this still means it gives investors exposure to many of the tech giants listed above, it also gives investors access to well-known blue chips such as Berkshire Hathaway, Caterpillar, Costco, Home Depot, Johnson & Johnson, Proctor & Gamble, and Visa and Mastercard.
Another positive is that many of these companies pay dividends, which means that it also provides investors with a source of income. At present the ETF offers a trailing 1.7% dividend yield.
