3 excellent ASX ETFs to invest $20,000 into this week

These high-quality ETFs could be top options for wealth creation in the share market.

| More on:
The letters ETF with a man pointing at it.

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

There are a lot of exchange-traded funds (ETFs)  to choose from on the Australian share market.

With so many options, it can be difficult to decide where to invest your money.

To narrow things down, let's look at some ASX ETFs that stand out as compelling options for long-term investors looking to build wealth.

Here's why they could be top picks for investors with $20,000 to invest into the share market this week:

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

The first ASX ETF to consider is the Betashares Global Cash Flow Kings ETF. This fund focuses on companies that generate high levels of free cash flow, which Betashares notes tend to outperform the market over the medium to long term.

Free cash flow is a key measure of financial strength and profitability, as it indicates how much cash a company has left over after covering its operating expenses and capital expenditures.

Some of the major holdings in this ETF include global giants such as Alphabet (NASDAQ: GOOG) and Visa (NYSE: V). These companies have a history of strong cash generation and dominant market positions, making them attractive long-term investments. Given its focus on high-quality businesses with robust cash flows, Betashares has recommended this ETF as a strong core exposure to global equities.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF that could be worth looking at is the BetaShares Global Cybersecurity ETF. This fund provides investors with exposure to the leading players in the global cybersecurity industry. With increasing digital threats and the growing importance of data security, the cybersecurity sector is expected to experience significant expansion over the coming years.

Betashares highlights that the cybersecurity market has an estimated total addressable market of between $1.5 trillion and $2.0 trillion globally, according to research by McKinsey.

However, the sector is still in its early stages, with only around 10% market penetration. This suggests there is a very long runway for growth, which could drive strong returns for investors in the HACK ETF in the future.

iShares S&P 500 ETF (ASX: IVV)

The final ASX ETF to consider for your $20,000 is the iShares S&P 500 ETF. This fund tracks the performance of the S&P 500 index, giving investors exposure to 500 of the largest and most influential companies listed on Wall Street.

By investing in this fund, you gain access to a diversified portfolio spanning multiple industries and sectors. This includes tech giants like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), as well as major players in the energy and healthcare sectors, such as Exxon Mobil (NYSE: XOM) and Johnson & Johnson (NYSE: JNJ). The S&P 500 has historically delivered solid long-term returns, making this ETF an attractive option for investors looking to build wealth over time.

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 Alphabet, Apple, BetaShares Global Cybersecurity ETF, Microsoft, Visa, and iShares S&P 500 ETF. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended Alphabet, Apple, Microsoft, Visa, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

A girl lies on her bed in her room while using laptop and listening to headphones.
ETFs

Narrowing it down: 2 ASX ETFs with a niche focus

These two funds offer great exposure to two emerging sectors. 

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
ETFs

2 top ASX ETFs to buy for passive income

Let's see what sort of yields these funds offer income investors.

Read more »

Woman with hands under a holographic globe with green related icons in the background.
ETFs

3 reasons why this Vanguard ETF is a top buy for diversification

I think this fund offers a lot of the diversification investors may need.

Read more »

A businessman hugs his computer and smiles.
ETFs

Why these ASX ETFs could be top buy and hold forever picks

Let's see why these funds could be great options for investors to buy and hold.

Read more »

ETF written in yellow with a yellow underline and the full word spelt out in white underneath.
ETFs

3 ASX ETFs for a $500 investment

These funds offer investors access to companies both locally and across the globe.

Read more »

Gold bars and Australian dollar notes.
ETFs

$10,000 invested in GDX ETF a year ago is now worth…

Has this ASX gold ETF delivered for investors amid the recent gold price bonanza?

Read more »

A woman in a hammock on her laptop and drinking a smoothie
ETFs

$10,000 invested in FANG ETF a year ago is now worth…

Since inception, the Fang+ ETF's total returns have averaged 30.82% per annum. No wonder it's popular.

Read more »

Businessman smiles with arms outstretched after receiving good news.
ETFs

3 reasons why this fund could claim to be the best ASX ETF

I think this fund has great elements that make it one of the best ETFs on the ASX.

Read more »