Where to invest $20,000 in ASX ETFs right now

Putting $20,000 to work in the share market can feel daunting.

But don’t let that put you off, even if you don’t like picking stocks.

That’s because exchange traded funds (ETFs) offer an easy way to put the money to work in the share market. They provide diversification, access to long-term themes, and a clear structure without requiring constant management.

Here are three ASX ETFs to consider for the $20,000.

BetaShares Global Defence ETF (ASX: ARMR)

The first ASX ETF to consider is the BetaShares Global Defence ETF.

This ETF provides investors with exposure to companies involved in the global defence sector. It includes businesses linked to military equipment, cybersecurity, and defence technology, including our very own DroneShield Ltd (ASX: DRO).

Spending in this area has been increasing as governments respond to shifting geopolitical conditions. That trend has supported long-term demand for defence-related products and services.

For investors, the BetaShares Global Defence ETF offers a way to access this theme without needing to identify individual international companies.

This fund was recently recommended by analysts at Betashares.

Global X Battery Tech & Lithium ETF (ASX: ACDC)

Another ASX ETF to consider is the Global X Battery Tech & Lithium ETF.

This ETF is built around the global transition to electrification. It holds companies involved in lithium mining, battery production, and electric vehicle supply chains. This includes Tesla (NASDAQ: TSLA) and Pilbara Minerals Ltd (ASX: PLS).

Demand for battery technology continues to grow as industries move toward cleaner energy and transportation solutions. This creates a broad opportunity set across both resource producers and technology companies.

The Global X Battery Tech & Lithium ETF provides exposure to that ecosystem in a single investment. It allows investors to participate in the long-term shift without needing to pick individual winners in a rapidly evolving space. It was recently recommended by Global X.

VanEck Australian Equal Weight ETF (ASX: MVW)

A final ASX ETF to consider for the $20,000 is the VanEck Australian Equal Weight ETF.

This ETF takes a different approach to investing in the Australian market. Instead of weighting companies by size, it gives each holding an equal allocation. This reduces the heavy concentration in large banks and major resource companies that is common in traditional indices.

The result is a more balanced exposure across sectors and companies, without one area dominating the portfolio.

This structure can also create opportunities. In periods of rising interest rates, equal weight strategies have historically outperformed the broader market. There is also greater exposure to companies outside the largest names, which may present opportunities at current valuations.

It was recently recommended by analysts at VanEck.

The post Where to invest $20,000 in ASX ETFs right now appeared first on The Motley Fool Australia.

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• Global X says it’s time to target this electric vehicle ASX ETF that has doubled in a year
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• 5 ASX ETFs to buy and hold for five years
• Why I’d buy these BetaShares ETFs for my portfolio in April

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Tesla. 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.