As the Australian Securities Exchange (ASX) reaches new highs, many investors are looking at Exchange Traded Funds (ETFs) for smart and varied investment options.
ETFs let you invest in a wide range of shares with one investment, making them a good choice for both new and experienced investors. Here are three ASX ETFs that are good picks for December:
1. BetaShares NASDAQ 100 ETF (ASX: NDQ)
The BetaShares NASDAQ 100 ETF gives investors a chance to invest in 100 of the biggest non-financial companies listed on the NASDAQ exchange. This ETF is great for those who want to benefit from the fast growth of the technology sector, which is not well-represented in the Australian market.
Key features:
- Includes major tech companies like Alphabet, Amazon, Apple, Meta, Microsoft, Netflix, Nvidia, and Tesla
- Provides access to innovative companies leading global tech advancements
- Offers a mix of high-growth sectors
2. VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
If you admire Warren Buffett’s investment style, the VanEck Vectors Morningstar Wide Moat ETF is a solid option. This ETF focuses on companies that have strong competitive advantages, known as “moats,” which is an important part of Buffett’s strategy.
Key features:
- Includes about 50 companies with strong competitive edges
- Holdings feature well-known brands like Adobe, Etsy, Nike, Starbucks, and Walt Disney
- Seeks to find undervalued companies with potential for long-term growth
3. Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO)
With possible interest rate cuts on the way, many experts expect a rise in the small-cap market. The Vanguard MSCI Australian Small Companies Index ETF provides access to this potentially profitable area.
Key features:
- Offers exposure to nearly 200 small-cap Australian shares
- Includes a mix of mid and small-cap companies, not just the smallest ones
- Holdings include a variety of companies like Breville Group, Codan, Liontown Resources, and Domain Holdings Australia
Investing in ETFs is a smart way to diversify your portfolio and access different market segments. These three ASX ETFs present unique opportunities for investors wanting to take advantage of various market trends and sectors in December.
Always make sure to research carefully and think about your financial goals and risk before investing. Talking to a financial advisor can help you ensure that your investment choices fit your overall financial plan.