Why I think these Vanguard ETFs are strong buys

I think the best exchange-traded funds (ETFs) are those that can give investors access to powerful long-term trends.

They provide exposure to areas of the global economy that can keep evolving over many years.

With that in mind, here are two Vanguard ETFs that I think are worth considering.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

The first ETF I would consider is one that gives investors exposure to a region undergoing enormous change.

It provides access to large and mid-sized companies across Asian markets outside Japan.

What interests me about Asia is the scale of its economic development. Millions (even billions) of people across the region are entering higher levels of consumption, adopting new technologies, and accessing services that have become common in developed markets.

That creates opportunities for businesses involved in areas such as financial services, consumer products, technology, and infrastructure.

I think the VAE ETF offers a different type of growth exposure compared with many other global ETFs. It gives investors access to companies benefiting from changing lifestyles and rising economic participation across some of the world’s most populous markets.

Of course, Asian markets can experience periods of uncertainty. Different countries have different economic conditions, currencies, and regulatory environments.

But for long-term investors, I think the VAE ETF provides exposure to a region with significant room to continue developing.

Vanguard Global Technology Index ETF (ASX: VTEK)

The second Vanguard ETF I would look at is focused on one of the biggest forces reshaping the global economy.

It provides exposure to companies involved in the technology sector, including businesses developing the software, hardware, and digital infrastructure used around the world.

I think the interesting part of technology investing is how many industries now depend on it. Technology is influencing healthcare, finance, manufacturing, education, transport, and everyday communication. The companies that create these tools can become deeply embedded into how other businesses operate.

Artificial intelligence is accelerating demand for chips, cloud infrastructure, software platforms, and the digital tools businesses use to automate work. While it is still early and individual winners are difficult to predict, I think owning a basket of global technology companies provides a way to participate in that long-term opportunity.

The VTEK ETF can experience larger price movements than broader market ETFs, particularly when investors change their expectations around technology companies. But for investors with patience, I think exposure to businesses driving innovation can be a powerful addition.

Foolish takeaway

I think these Vanguard ETFs appeal for different reasons.

One provides exposure to Asia’s ongoing development and the other captures the companies shaping technological change.

The common thread is that both funds give investors a way to own businesses benefiting from long-term economic progress.

That is why I think these ETFs could be valuable long-term holdings for investors who want simplicity without sacrificing exposure to global opportunities.

The post Why I think these Vanguard ETFs are strong buys appeared first on The Motley Fool Australia.

More reading

• 3 Vanguard ETFs to build long-term wealth
• Why I’d put $2,500 into these top Vanguard ETFs
• 3 ASX ETFs I’d buy if I wanted easy global investing

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.