Are these the best ASX ETFs to buy with $1,000 in May?

If you are fortunate enough to have $1,000 to invest in the share market, but don’t know where to put it, then it could be worth considering an ASX exchange traded fund (ETF).

But with so many to choose from, it can be hard to decide which ones to buy.

Don’t worry, I will now narrow things down by picking out three that could be best buys as the month of May approaches rapidly.

Here’s why they could be worth considering for a $1,000 investment:

BetaShares Nasdaq 100 ETF (ASX: NDQ)

The first ASX ETF to consider is the BetaShares Nasdaq 100 ETF.

This ETF provides exposure to 100 of the largest non-financial companies listed on the Nasdaq exchange. It is heavily weighted towards technology and growth-oriented businesses.

Its holdings include companies such as Apple (NASDAQ: AAPL), Netflix (NASDAQ: NFLX), Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT), and NVIDIA (NASDAQ: NVDA).

Demand for AI, cloud computing, and digital services continues to support growth across this group of companies. This could make the BetaShares Nasdaq 100 ETF a strong performer over the next decade and beyond.

iShares S&P 500 ETF (ASX: IVV)

Another ASX ETF to consider is the iShares S&P 500 ETF.

This ETF tracks the performance of the S&P 500 Index, giving investors access to 500 large-cap US stocks.

Its holdings include companies such as Apple, Microsoft, Amazon, Walmart (NYSE: WMT), and McDonald’s (NYSE: MCD).

This means that the iShares S&P 500 ETF provides broad exposure to the US economy, which remains the largest and most influential market globally. It also offers diversification across sectors and tends to be less concentrated than more thematic ETFs.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

A third ASX ETF to consider is the VanEck Morningstar Wide Moat ETF.

This ETF focuses on companies that are judged to have sustainable competitive advantages, often referred to as economic moats.

Its holdings include companies such as Alphabet (NASDAQ: GOOGL), Visa (NYSE: V), and Airbnb (NASDAQ: ABNB). Visa stands out due to its global payments network, which benefits from high margins and strong network effects.

In addition, the VanEck Morningstar Wide Moat ETF incorporates a valuation overlay, selecting companies that are not only high quality but also trading at what is considered an attractive price.

This combination of quality and valuation offers a different approach compared to traditional index tracking ETFs.

The post Are these the best ASX ETFs to buy with $1,000 in May? appeared first on The Motley Fool Australia.

More reading

• ASX ETF investors exit US stocks in favour of Aussie shares: Betashares
• How I’d use the iShares S&P 500 ETF (IVV) to create $50,000 annual passive income
• How to start investing in ASX shares with $1,000
• Stagflation: How to position an ASX stock portfolio
• 3 reasons I’d invest $5,000 in the iShares S&P 500 IVV ETF

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Airbnb, Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Microsoft, Netflix, Nvidia, Visa, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2028 $320 calls on McDonald’s and short January 2028 $340 calls on McDonald’s. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Airbnb, Alphabet, Amazon, Apple, Microsoft, Netflix, Nvidia, VanEck Morningstar Wide Moat ETF, Visa, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.