Insights

2 top ETFs to buy next week

There are some top exchange-traded funds (ETFs) that could be worth a spot in a portfolio, like Betashares Nasdaq 100 ETF (ASX:NDQ).
The post 2 top ETFs to buy next week appeared first on The Motley Fool Australia. –

Wooden blocks depicting letters ETF, ASX ETF

There are some top exchange-traded funds (ETFs) that are producing top returns and may be worth considering.

One of the benefits of ETFs is that they can provide diversification across a large number businesses or assets in a single investment.

Here are two ETFs that may be worthy considerations:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This particular ETF isn’t talking about castles and moats with water. It’s about finding businesses that research firm Morningstar believes possess sustainable competitive advantages, or ‘wide economic moats’.

For Morningstar, and the ETF, to make into the ETF’s portfolio, the target companies must be trading at attractive prices relative to Morningstar’s estimate of fair value. Morningstar uses an extensive equity research process to come to that conclusion.

The businesses that are in this portfolio are entirely from the US, though the underlying earnings of those companies can come from many different countries.

However, there is diversification through the different sector weightings. At the end of January 2021, healthcare was 19.5% of the portfolio, information technology was 18.7% of the portfolio, financials was 17.3% of the portfolio, industrials was 11.7% of the portfolio, consumer staples was 10.6% of the portfolio and consumer discretionary was 7.4%. Other sectors with smaller allocations include communication services, materials, energy and utilities.

Looking at the largest holdings at the end of January 2021, they were: John Wiley & Sons, Charles Schwab, Corteva, Cheniere Energy, Wells Fargo, Blackbaud, Intel, Bank of America, Biogen and Constellation Brands.

In terms of the annual management fee, its yearly cost is 0.49%.

After those fees, VanEck Vectors Morningstar Wide Moat ETF’s net fees have been an average of almost 15% per annum over the last three years and an average of 17.1% per annum over the last five years.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This ETF is about giving investors exposure to 100 of the biggest non-financial businesses listed on the NASDAQ, which is a stock exchange in the US.

You’ll find many of the world’s biggest technology companies within the holdings of this ETF. On 4 February 2021, the biggest ten positions in the portfolio were: Apple, Microsoft, Amazon, Tesla, Alphabet, Facebook, Nvidia, PayPal, Netflix and Intel.

But there are many other businesses in the ETF’s holdings which are among the global leaders in their category such as Adobe, Cisco Systems, Broadcom, PepsiCo, Qualcomm, Costco, Starbucks, Advanced Micro Devices, Booking Holdings, Intuitive Surgical, Activision Blizzard, Mondelez International, Zoom, Modern and Docusign.

Looking at the sector allocation of the portfolio, just under half is invested in IT shares, then there’s 19.2% allocated to consumer discretionary and 18.6% is invested in communication services. Other sectors in the portfolio include healthcare, consumer staples, industrials and utilities.

The ETF has an annual management fee of 0.48% per annum, which is lower than many active fund managers.

The net returns of the ETF have been better than the ASX. Over the last year the net return has been 25.8%, over the last three years it has produced average returns per annum of 25.7% and since inception the ETF has returned an average of 21.25% per annum.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 top ETFs to buy next week appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!