Want to invest ethically for a brighter future?
(but still make lots of money)?

Want to invest ethically for a brighter future? (but still make lots of money)?

 Take Rask’s FREE Ethical Investing course today.

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Want to invest ethically for a brighter future? 
(but still make lots of money)?

 Take Rask’s FREE online Ethical Investing course.

2 Australian ASX ETFs For Long-Term Growth

If you want to add growth shares your investment portfolio but you’re not comfortable picking individual shares, consider adding the ASX ETFs I’ve outlined below.

What Are ETFs? 

Exchange traded funds, or ETFs, are investment funds that are listed on a securities exchange. They can be managed funds or index funds, or in other words, active or passive, and the fees are usually lower than an unlisted investment fund.

To learn more about ETFs, check out the Rask Finance video below which compares them to Listed Investment Companies or LICs:

Broadly speaking, share ETFs give an investor exposure to many different shares with a single purchase, offering one of the quickest and easiest methods of achieving diversification. However, they’re not limited to investing in shares. Our website provides a list of all ASX ETFs.

iShares Global 100 ETF

The iShares Global 100 ETF (ASX: IOO) is an option for global growth in shares. With a management fee of 0.40% per year, the ETF has delivered a return of 14.44% over the last 12 months and 11.54% per year over the last ten years.

That’s an impressive long-term track record. However, keep in mind that this performance record is taken during a bull market. Since its inception in 2000, the IOO ETF has returned around 2.52% per year, so it seems heavily exposed to downturns in markets.

Approximately 65% of the ETF is invested in the US and the largest holding is Microsoft Corporation (NASDAQ: MSFT).

Vanguard Diversified High Growth Index ETF

The Vanguard Diversified High Growth Index ETF (ASX: VDHG) has the lowest management fee of the two funds at 0.27% per year. The VDHG ETF covers Australian shares, international shares, global bonds, emerging markets and Australian fixed interest, providing the investor with a significant diversification benefit. Basically, it’s an all-in-one growth ETF managed and updated by Vanguard.

Year-to-date, the shares are up 16.51% and they’re up 9.6% over the last 12 months. The VDHG ETF gives the investor exposure to a range of Vanguard wholesale funds, making it easier to invest in these unlisted funds.

Summary

The Vanguard fund is relatively new, so it remains to be seen how it will perform over the long term. The iShares ETF should serve as a warning that these types of ETFs can provide high growth in bull markets, but they can also fall steeply in bear markets.

Before investing, I would carefully consider what sort of weighting is appropriate for a high-growth ETF and how it may react to a market downturn.

 

Disclosure: At the time of writing, Max does not own shares in any of the companies mentioned.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here or enter your email address below to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just enter your email address below and we'll send you the report right away.

From 200+ ETFs in Australia, our top investment analyst has just identified his #1 ETF for 2021 and beyond.

Low fees? Check.

Long-term growth potential? Check.

Regular cash returns? Check!

This ETF makes investing in ETFs "Super-Easy".

Simply click here to access the full ETF report, ticker code, and step-by-step investment guide. Our expert's #1 ETF report is completely free.

No gimmicks, no payment, no credit card info. Just click the link below and enter your email address. We'll send you the report right away.

CLICK HERE TO GET THE REPORT

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The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms & Conditions and Financial Services Guide before using this website.

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