The exchange traded fund (ETF) options that are available to Australian investors are wonderful these days. ETFs can provide us easy investing and good returns.
You can access most share markets, industries or indexes through the right ETF. Some are good picks, but some are not so good.
The really good ETFs provide us good diversification for low fees. Here are two ETFs that are easy to invest in and can provide good returns:
BetaShares Australia 200 ETF (ASX: A20)
This ETF gives investors exposure to the largest 200 companies listed on the ASX, based on their market capitalisations.
Its top holdings are the very-recognisable blue chips on the ASX, being Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Westpac Banking Corp (ASX: WBC), CSL Limited (ASX: CSL) and Australia and New Zealand Banking Group (ASX: ANZ).
Not only is investing in ETFs a decent idea in general, but this one is the lowest costing Australian shares ETF available on the ASX with an annual management fee of only 0.07% per annum.
Another pleasing bonus about this ETF is that it pays a quarterly distribution, helping cashflow.
The only downside is that it is heavily focused on domestic businesses, and is heavily allocated to financials and materials – more than half the ETF's assets are allocated to these two sectors.
BetaShares NASDAQ 100 ETF (ASX: NDQ)
You could make up for the lack of technology in the Australian index by going for this NASDAQ ETF, which gives access to some of the best technology businesses in the world such as Apple, Microsoft, Amazon, Facebook, Microsoft and Alphabet.
These tech companies are the ones innovating and changing the world the most, so they are the ones that are able to increase their revenue and profit by a good amount each year.
I believe that Alphabet, Microsoft and Facebook have some of the best opportunities to boost their income in the future with things like automated cars, virtual reality and cloud computing. Their core businesses continue to grow at a good rate each year too.
Over the past three years the ETF has generated an annual return of nearly 15% per annum.
Foolish takeaway
After recent market declines I think the NASDAQ 100 ETF could be worth buying, and I like the BetaShares Australian ETF as the cheapest way to access ASX shares.
