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:
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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.
