Market beating returns and big yields: 2 ASX ETFs to buy next week

Looking for exchange traded funds (ETF) to buy when the market reopens?

Well, depending on what your investment aim is, the two ETFs listed below could be worth considering.

Here’s what you need to know about these popular ETFs:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

The first ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF.

This ETF and the index it tracks has been a great place to invest over the last decade. Even after accounting for 2022’s difficulties, the index it tracks has generated an average annual return of 18.64% since 2013. This would have turned a $10,000 investment into over $55,000.

This strong performance has been driven by its focus on fairly priced US companies with sustainable competitive advantages or moats.

The fund changes its constituents periodically and removes stocks when they become overvalued. But generally, there are approximately 50 shares in the fund at any given time. At present, this includes Alphabet, Amazon, Meta Platforms, Microsoft, and Walt Disney.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Another ETF for investors to consider buying next week is the Vanguard Australian Shares High Yield ETF. It could be a top option for investors that are looking for income.

That’s because this ETF provides investors with low-cost exposure to a diverse group of ASX listed shares that have higher forecast dividends relative to the rest of the market. This excludes Australian Real Estate Investment Trusts (A-REITS).

At present, the Vanguard Australian Shares High Yield ETF is trading with an estimated forward dividend yield of 5.4%. This would mean that a $10,000 investment provides a yield of $540.

Among the ASX shares that you’ll be owning with this ETF are blue chips such as BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Telstra Corporation Ltd (ASX: TLS), and Woodside Energy Group Ltd (ASX: WDS).

The post Market beating returns and big yields: 2 ASX ETFs to buy next week appeared first on The Motley Fool Australia.

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More reading

• Buy this ASX ETF for retirement income
• Is a dividend ETF really better than an ASX index fund for income?
• 3 high quality ETFs for ASX investors to buy after the market selloff
• 3 reasons not investing at all could be riskier than trying to invest
• These ETFs could be top options for buy and hold investors

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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