2 awesome ETFs I’d love to buy

I think there are some high quality exchange-traded funds (ETFs) that look very interesting as long-term investments.

These two ETFs have quality holdings and look like they have plenty of growth potential in my opinion:

VanEck Vectors MSCI World ex Aust Quality ETF (ASX: QUAL)

This ETF is about giving investors exposure to a portfolio of high quality international businesses.

To make it into the portfolio, those businesses have to rank well with a high return on equity, stable year-on-year earnings growth and low financial leverage.

Quality businesses have a habit of outperforming in difficult times and performing well during normal economic periods.

The portfolio has approximately 300 companies across a range of geographies, sectors and economies.

The biggest names in the portfolio are pretty similar to most global index portfolios: Microsoft, Apple, Facebook, Johnson & Johnson, Alphabet, Visa, Nvidia, United Health and Nestlé.

It has an annual management fee of 0.4%. Past performance is no guarantee of future performance. With that in mind, the QUAL ETF has produced net returns of an average of 15.7% per annum.

Betashares Climate Change Innovation ETF (ASX: ERTH)

This ETF is about investing in businesses that are essentially in involved in making the world a better, greener, more sustainable planet. Many of them are fighting against climate change.

According to Betashares, it has a portfolio of up to 100 leading global companies that derive at least 50% of their revenues from products and services that help to address climate change and other environmental problems through the reduction or avoidance of CO2 emissions. This covers clean energy providers, along with leading companies tackling green transport, waste management, sustainable product development, and improved energy efficiency and storage.

There are plenty of predictions out there that suggest the world is going to need to spend hundreds of billions of dollars, if not trillions of dollars, to improve the climate change situation. It’s the type of businesses in this portfolio that could make all the difference over the coming years.

Some of the businesses with the biggest weightings in the portfolio includes: Docusign, Trane Technologies, Cie De Saint-Gobain, Zoom Video Communications, Infineon Technologies, Nio, Tesla, East Japan Railway, Vestas Wind Systems and Li Auto.

It has an annual management fee of 0.65%. Past performance is no indicator of future performance, but over the last three years the index it tracks has produced an average net return per annum of 34%.

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.

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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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At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

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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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