Here are 5 Australian ETFs I would buy if I had $10,000 to invest right now in 2020.
Why it could be time to buy these ETFs
Confidence is returning to investors with the worst stage of COVID-19 seemingly over. Australia is in such a good healthcare position that it seems the economy may be able to bounce back quicker than expected.
BetaShares A200 ETF
It is the cheapest way to invest in the ASX 200 with an annual management fee of just 0.07%. If you’re going to invest in an index product then you may as well go for the cheapest one.
If Australia’s economy is going to do better than expected, then being invested in Australia’s 200 biggest shares could be a good idea. The biggest positions are shares like CSL, CBA and BHP.
Vanguard VAE ETF
When you look at the overall economic picture of the world, it’s several Asian countries that appear to have COVID-19 under control the most.
Places like South Korea, Taiwan, South Korea and China. These are also economies which are growing strongly with excellent businesses listed on their stock exchanges. Companies like Alibaba, Tencent, Taiwan Semiconductor Manufacturing and Samsung.
Asia is a good place to be invested in with a part of your portfolio in my opinion.
Betashares F100 ETF
In some ways, the UK share market is similar to the Australian share market. Both stock exchanges even have Rio Tinto and BHP listed on them.
However, the UK share market has more global businesses that I think make better investments than say ASX banks. I believe the UK shares offer better diversification with shares like AstraZeneca, GlaxoSmithKline, Unilever, Reckitt Benckiser, National Grid and so on.
Betashares EX20 ETF
Australia is one of the least diversified major share markets in the world. There’s a big focus on financial and resource businesses. There are tech shares on the ASX, but they’re too small to make a difference. So this ETF gives the potential of investing in ASX shares outside of the ASX 20.
It’s invested in shares like Fortescue Metals, Brambles, Sonic Healthcare and Fisher & Paykel Healthcare. These are the types of businesses that are likely to make stronger returns over the longer term.
iShares IVV ETF
Warren Buffett says that people would be well served to invest in an S&P 500 ETF. That covers the biggest 500 businesses listed in the US. Shares like Microsoft, Amazon, Facebook, Alphabet and Apple are all part of the S&P 500. Then there are stocks like Berkshire Hathaway, Visa, Mastercard and Netflix that also form part of the index.
It’s not just an American index though. Many of the holdings earn profit from across the world. It’s a high-quality global index. And it also has the cheapest management fee on this list.