Expert Analysis on Top ETFs Stocks Performance
The ASX 200 added 135.50 points or 1.88% to 7,332.20 on Thursday. Today, the market is snapping two sessions of consecutive losses amid broad-based gains. The rebound was triggered by Iron ore prices lifting mining heavyweights, while higher long term bond yields proved a boon for financial stocks.
Best ASX ETFs Stocks For Your Next Investment
As the market is on an imminent rebound, you might consider adding to your investment these high qualities and diversified Exchange Traded Funds (ETF):
The VanEck QUAL ETF (ASX: QUAL)
The VanEck QUAL ETF gives investors exposure to large companies from developed countries around the world, excluding Australia. That means, it is a good asset allocation to diversify your portfolio. Hence, if most of your portfolio holdings are on Aussie stocks, this ETF will provide you exposure to other key markets. According to the latest data, the QUAL ETF had $2263.67 million of money invested.
Money is well deployed in the world’s highest quality companies based on key fundamentals. This includes firms with a high return on equity, earnings stability, and low financial leverage.
We like this ETF because it invests in businesses with quality characteristics that have been proven over time. Thus, companies held in the QUAL ETF have delivered outperformance over the long term relative to global equity benchmarks.
The QUAL ETF has returned more than 31% since the last 12-months. Besides, it offers a reasonable growth rate. This ETF also distributes a safe dividend yield of 1.3%.
BetaShares Nasdaq 100 ETF (ASX: NDQ)
Another option for investors interested in diversifying their portfolio could be the BetaShares NDQ ETF. This hugely popular ETF tracks the performance of the NASDAQ 100 Index before fees and expenses.
This famous index comprises 100 of the largest non-financial companies listed on the NASDAQ stock exchange. This means you’ll be owning a slice of some of the biggest tech companies the world has to offer. Hence, these include Google’s parent Alphabet, Amazon, Apple, Facebook, Microsoft, and Netflix to name a few.
It is worth noting that this area of the market is underrepresented in the Australian share market. Considering this, the NDQ ETF could help balance out a portfolio that is heavily weighted to financial and mining companies.
Over the last five years, the BetaShares NASDAQ 100 ETF has also smashed the market. During this time, the ETF has generated a return of around 28% per annum.
iShares Core S&P/ASX 200 ETF (ASX: IOZ)
This ASX 200 ETF gives people the ability to invest in the Australian broad market, which effectively represents most of the ASX share market.
It can be tricky knowing where to start investing in the ASX share market. There are literally thousands of different potential investments to choose from. Hence, you might go for one of the biggest businesses in Australia such as CBA, BHP, or Telstra for instance.
What about smaller businesses with more growth potential? For example, Adore, Pushpay or even Temple & Webster.
The solution for you to get exposed to the broad market without worrying about how to pick any individual shares would be to consider the IOZ ETF. This ETF allows you to invest in lots of businesses at once.
The IOZ ETF aims to track the ASX 200. Accordingly, the largest ASX businesses are obviously the biggest positions. For example, CBA is 8.8% of the ETF allocation, while CSL is 6.9%, BHP 5.4%, Westpac 4.5%, NAB 4.4%, and ANZ 3.8%. Those are the five biggest positions. It goes all the way down to the smallest of the 200 shares of the ASX.
The ability to get that much diversification in one investment is very useful. Investors do not have to worry about how much of each investment to own. The ETF automatically does it. In short, this ETF will offer you the returns of the ASX 200 index, less the management fee.
It is worth noting, that the IOZ ETF fees are absolutely low. In fact, it is the lowest fee when it comes to investing in ASX 200 shares. The annual management fee is 0.07% of the fund value per year. That is extremely low. To put it in context, a typical fund manager may charge 1% of the investment each year.