More and more money is piling into exchange traded funds (ETFs) and it isn’t hard to see why.
Through just a single investment, investors can gain exposure to whole sectors, indices, or thematics.
Whilst there is a plethora of options for investors to choose from, three of my favourite ETFs are listed below. Here’s why I like them:
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
Whilst the United States might lead the way when it comes to tech companies, China certainly is no slouch. It is home to fast-growing companies such as Alibaba, Tencent, Baidu and JD.com, to name just a few. If you would like to gain exposure to them, then BetaShares Asia Technology Tigers ETF would be a good way to do it. It gives investors the option to own the 50 largest technology and online retail companies that have their main area of business in Asia (excluding Japan).
iShares Global Healthcare ETF (ASX: IXJ)
The iShares Global Healthcare ETF offers investors exposure to healthcare shares from around the world. It covers companies across biotechnology, pharmaceutical, and medical device sectors. This includes many of the world’s biggest and best healthcare companies such as CSL Ltd (ASX: CSL), Johnson & Johnson, Novartis, and Pfizer. As ageing populations around the world are growing strongly and chronic disease burden is increasing, demand for healthcare services is expected to increase markedly over the next couple of decades. As a result, I think this ETF could generate strong long-term returns for investors.
iShares S&P 500 ETF (ASX: IVV)
As its name implies, the iShares S&P 500 ETF gives investors exposure to Wall Street’s S&P 500 index. This index is home to many of the largest companies in the world, including the likes of Alphabet (Google), Amazon, Apple, and Microsoft. I believe the outlook for index is very positive, making it a great place to invest your money. It is also worth noting that the ETF is not currency hedged. This means that if the Australian dollar continues to weaken, the value of your investment will appreciate. Given the outlook for rates in Australia, I suspect this is a possibility.
The post 3 quality ETFs that could generate strong long term returns for investors appeared first on Motley Fool Australia.
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James Mickleboro 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 owns shares of and has recommended BetaShares Asia Technology Tigers ETF. 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