Invest $20,000 in these ASX ETFs for 2025 and beyond

These funds have delivered the goods for investors in the past and are being tipped as top picks now.

| More on:
ETF spelt out with a rising green arrow.

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

sdf

Stock-picking can be intimidating, but don't let that stop you from investing.

After all, there are exchange-traded funds (ETFs) out there that make life easier for investors.

Rather than have to buy individual stocks, you can buy a large group of them through an ASX ETF.

But which ETFs would be good picks for an investor looking to put $20,000 into the share market in 2025 and beyond. Let's take a look at a couple of options:

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

They say that cash is king. And that certainly seems to be the case in the world of investing too. Betashares notes that companies that generate high levels of free cash flow have historically tended to outperform the market over the medium to long term. This is exactly what you would want from a portfolio holding.

As a result, the Betashares Global Cash Flow Kings ETF could be a great option for investors looking to make a buy and hold investment. It focuses on global companies with strong free cash flow generation. This includes companies such as Alphabet (NASDAQ: GOOG), Visa (NYSE: V), and Accenture (NYSE: ACN). Betashares has recommended the ETF as one to buy and highlights that it could serve as a core exposure to global equities or alongside existing low-cost passive global ETFs.

The index this fund tracks has delivered an average total return of 14.54% per annum for the past 10 years. This would have turned a $20,000 investment into almost $78,000.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another ASX ETF that Betashares has named as a buy is the Betashares Global Quality Leaders ETF. It is never a bad idea to invest in high-quality companies. In fact, it is probably the smartest thing you could do as an investor.

So, buying the Betashares Global Quality Leaders ETF with a $20,000 could be a good idea in 2025. This fund is home to approximately 150 companies that rank highly on four key metrics: return on equity, debt-to-capital, cash flow generation, and earnings stability.

Among its holdings at present are Adobe Inc (NASDAQ: ADBE), Costco Wholesale Corporation (NASDAQ: COST), Netflix Inc (NASDAQ: NFLX), and Novo Nordisk (NYSE: NVO).

The index that this fund tracks has generated an average total return of 15.45% per annum over the past 10 years. If you had invested $20,000 in it, your investment would have grown to be worth over $84,000 today.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor James Mickleboro 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 Accenture Plc, Adobe, Alphabet, Costco Wholesale, Netflix, and Visa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Novo Nordisk and has recommended the following options: long January 2025 $290 calls on Accenture Plc and short January 2025 $310 calls on Accenture Plc. The Motley Fool Australia has recommended Adobe, Alphabet, Netflix, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Oil industry worker climbing up metal construction and smiling.
Share Market News

Will the oil price hit US$100 in 2025?

Oil has surged around 10% since 13 June.

Read more »

Three miners looking at a tablet.
Broker Notes

Macquarie tips 28% upside for this ASX All Ords mining stock

Let's see why the broker is bullish on this beaten down miner.

Read more »

A elder man and woman lean over their balcony with a cuppa, indicating share rpice movement for ASX retirement shares
Small Cap Shares

Why I think this ASX small-cap stock is a bargain at 58 cents

This stock looks like a great buy, in my opinion.

Read more »

Man with rocket wings which have flames coming out of them.
Mergers & Acquisitions

Which ASX All Ords stock is rocketing on takeover news?

This payments company has accepted a takeover offer.

Read more »

a man looks down at his phone with a look of happy surprise on his face as though he is thrilled with good news.
Broker Notes

5 ASX 200 shares for smart investors to buy now

Brokers think these shares are smart buys. Let's find out what they are.

Read more »

Share Market News

Important Changes to ASX Trading Times

These changes come into effect today (23 June 2025).

Read more »

Woman on a tablet waiting in for her flight in an airport and looking through a window.
Travel Shares

Up nearly 70% in a year, does JP Morgan think Qantas shares can go higher?

Qantas shares have been a home run for investors over both the short and long term.

Read more »

A man in a suit face palms at the downturn happening with shares today.
Share Market News

These are the 10 most shorted ASX shares

Let's see which shares short sellers are targeting this week.

Read more »