Exchange-traded funds (ETFs) could be the best way to invest for most people, as it takes out the guesswork of trying to find the right company at the right price.
Buying an ETF allows you to invest in large number of businesses with a single purchase, as opposed to having to buy each company separately with associated broker costs. Achieving the market average could be good for most people.
Here’s two ETFs that could be ideas for your portfolio:
Vanguard Australian Share ETF (ASX: VAS)
I’m sure most readers know of Vanguard, one of the world’s leaders in offering low-cost ETFs.
Everyone seems to think that Australia may go through a recovery phase with Labor’s taxation changes no longer going ahead. So there could be better times ahead for ASX shares. We’ll see if that happens.
This ETF’s top holdings include Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), CSL Limited (ASX: CSL) and BHP Group Ltd (ASX: BHP). I’m sure you’ve all heard of those blue chips.
It has a low annual management fee of 0.14% per annum.
BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)
Sometimes investors like to follow a theme or trend. Robotics and artificial intelligence could be one of the best themes to try to get exposure to over the next few decades as they have the potential to change the world like the internet or smartphones have done.
However, it’s very hard to know which business is going to be the one to truly make a difference, so why not make an investment in a group of them and hedge your bets?
The ETF’s largest holdings include Intuitive Surgical, Mitsubishi Electric, Keyence, Abb, Fanuc and Daifuku.
Each of these ETFs have positives. If I were to pick one I’d go for the robotics ETF – it’s very different to my other holdings, it provides global exposure and I’m not really a fan of the ASX index with its large weighting to banks.
However, these top ASX shares could provide the right mix of dividends, growth and defensiveness of earnings.
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- NEW: Free report names top 3 ASX dividend shares to buy for 2019
- Top analysts name their top 3 ASX blue chip shares for 2019
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- 3 quality dividend shares to boost your income
Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019