Exchange-traded funds (ETFs) are one of my favourite ways to invest for the long term.

With $5,000 to invest, Vanguard offers plenty of choices across different markets and investment strategies.

Here are three ETFs I would be happy to consider buying with the money today.

Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE)

The first ETF I would consider is the VGE ETF, which provides exposure to businesses across emerging markets.

I like this fund because it offers access to parts of the world that could experience substantial economic development over the coming decades.

For example, India has a growing middle class, rising consumption, and an expanding digital economy. Meanwhile, Taiwan plays an important role in global semiconductor manufacturing, and China remains one of the world’s largest consumer markets.

Through the Vanguard FTSE Emerging Markets Shares ETF, investors can gain exposure to thousands of stocks across these markets and others without having to pick individual winners. I think that is a sensible way to participate in the long-term growth of emerging economies.

Of course, these markets can be volatile. Political uncertainty, changing regulations, and currency movements can all affect returns.

But for someone with a long investment horizon, I believe the potential growth makes this Vanguard ETF worth considering.

Vanguard Global Technology Index ETF (ASX: VTEK)

My second choice would be the VTEK ETF.

Technology continues to change how businesses operate and how people live, and I think some of the biggest developments are still ahead of us.

Artificial intelligence (AI) is one obvious example. Businesses are investing enormous amounts in the computing infrastructure required to develop and run AI applications. As those applications become more widely used, I expect demand for software, semiconductors, and other supporting technologies to keep growing.

The VTEK ETF provides exposure to approximately 300 major technology stocks across developed and emerging markets. This includes NVIDIA, which has become a major supplier of the computing chips powering AI development.

But the opportunity extends beyond AI. Cloud computing, cybersecurity, automation, and the continued digitisation of businesses could all support technology spending over the coming years.

I particularly like being able to participate in these trends through a single investment.

The main risk for investors is concentration. Technology shares can be volatile, particularly when growth expectations are high, and the fund has significant exposure to a relatively small number of global giants.

Nevertheless, I think the VTEK ETF could be a strong long-term investment.

Vanguard Diversified All Growth Index ETF (ASX: VDAL)

My final pick takes a much broader approach. The VDAL ETF is designed for investors who want long-term share market growth without having to assemble and manage a portfolio of different ETFs themselves.

It provides exposure to more than 6,000 stocks across over 50 global markets, including Australian shares, international businesses, emerging markets, and small caps.

I think that makes it an excellent option for someone who wants to keep investing simple.

One important feature is that this Vanguard ETF invests entirely in growth assets, with a 100% allocation to shares.

That gives it substantial long-term growth potential, but it also means investors need to be comfortable with share market volatility. There is no defensive bond allocation to help cushion market downturns.

For someone investing over many years, though, I think that approach makes sense if they have the tolerance for the ups and downs along the way.

Foolish takeaway

I would be happy to invest $5,000 in any of these Vanguard ETFs.

All three offer long-term growth potential, and I think they could reward investors who are prepared to buy and hold for many years.

The post Why I would invest $5,000 in these top Vanguard ETFs appeared first on The Motley Fool Australia.

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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 positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I love the idea of investing for the long term and building significant cash flow for retirement. Superannuation could be the best place to invest for those goals.

If I’m working full-time and want to invest, putting money into shares in my own name could mean paying at least 30% tax on investment returns. Investing through superannuation could mean paying a tax rate of half that.

One of the main perceived negatives of superannuation is that the money is locked away for so long. It’s true that the money contributed to superannuation may not be accessible for decades. But that’s the point – we’re saving for retirement.

With mandatory contributions (and possibly topped up by additional amounts), investors can build towards a very pleasing net worth.

When it comes to building annual passive income, tax can play an important part because the income we can spend/invest is what we earn after tax. So, the tax rate affecting our investments is important.

Reaching $100,000 in annual passive income can be assisted by using superannuation, due to lower taxes during the accumulation phase and in retirement. Investing in our own name as an individual can come with higher taxes throughout life compared to the superannuation tax rate.

Let’s look at what is needed to make $100,000 of dividends within superannuation, while ignoring tax from now on because everyone has a different tax position.

Dividend yields are important

Any share investment that pays a dividend has a dividend yield.

That dividend yield is decided by how much of its annual earnings it pays out – the dividend payout ratio – and the valuation of the business.

A business can be valued in many ways, such as its price-earnings (P/E) ratio, the price-to-book ratio, and so on. The more expensive an asset is, the lower the dividend yield becomes.

Investors seeking dividend income will probably hunt for a solid dividend yield, but I think yields can be excessive if the dividend payout ratio gets too high, so I wouldn’t fill my portfolio with the highest yields I can find.

How large an investment balance needs to be to generate $100,000 of annual passive income depends on the dividend yield.

For example, if a portfolio had a dividend yield of 4%, it would need to be $2.5 million in size.

If the portfolio had a 5% dividend yield, it would need to be a $2 million portfolio.

A portfolio with a 6% dividend yield would require a $1.67 million portfolio.

Each portfolio yield comes with a different target, so it depends on what sorts of ASX shares investors buy.

So, let’s run through some businesses with their dividend yields.

Examples of top ASX shares with their dividend yields

I think investors should focus on the forecast upcoming payments where possible, rather than the past dividends. Forecasts are either from CMC Invest or the business itself. So, I’ll largely be looking at forecast grossed-up dividend yields, including franking credits if that’s relevant.

First, I’ll mention a couple of blue chips for superannuation dividend investing. In FY27, Coles Group Ltd (ASX: COL) is forecast to pay a grossed-up dividend yield of 5.2%, and Telstra Group Ltd (ASX: TLS) is projected to pay a grossed-up dividend yield of 6.5%.

Real estate investment trust (REIT) yields are looking particularly appealing following elevated interest rates. For example, Centuria Industrial REIT (ASX: CIP) is projected to pay a distribution yield of 6.2%, and Charter Hall Long WALE REIT (ASX: CLW) is forecast to pay a distribution yield of 7.8%.

Finally, I’m a big fan of compelling investment businesses with good investment strategies. Three of my favourites include Washington H. Soul Pattinson and Co Ltd (ASX: SOL), with a current grossed-up dividend yield of 3.4%, L1 Long Short Fund Ltd (ASX: LSF), with a current grossed-up dividend yield of 4.5%, and MFF Capital Investments Ltd (ASX: MFF), with a current grossed-up dividend yield of 6.7%.

The above ASX shares, and others, could be great contenders to produce an annual passive income of $100,000.

The post How much is needed in superannuation to target a $100,000 annual passive income? appeared first on The Motley Fool Australia.

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• Woolworths Group vs Telstra Group: Which ASX blue chip pays better passive income?
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Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund, Mff Capital Investments, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Mff Capital Investments, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a pleasant end to a bumpy week for the S&P/ASX 200 Index (ASX: XJO) and the broader Australian share market this Friday. After yesterday’s depressing session, investors returned to trading this morning with a renewed sense of optimism, with ASX shares starting strong and staying in positive territory all day.

By the time the closing bell rang, the ASX 200 had added 0.64% to its total. That leaves the index at 8,716.6 points as we head into the weekend.

This happy ending for the local trading week came after a more nuanced morning on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) put on a decent show, rising 0.1%.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) wasn’t so lucky, dropping a hefty 1.25%.

But let’s get back to the ASX now and take a closer look at how the various ASX sectors fared this Friday.

Winners and losers

There were only two corners of the market that missed out on a gain today.

The first, and worst, of those unlucky sectors was communications shares. The S&P/ASX 200 Communication Services Index (ASX: XTJ) was left out today, falling 0.56%.

Mining stocks were also unlucky, with the S&P/ASX 200 Materials Index (ASX: XMJ) sliding down 0.03%.

It was all smiles everywhere else, though. Leading the winners were tech shares. The S&P/ASX 200 Information Technology Index (ASX: XIJ) had a veritable party, rocketing 2.23% higher.

Consumer discretionary stocks were right behind that, illustrated by the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ)’s 2.16% surge.

Real estate investment trusts (REITs) also ran hot. The S&P/ASX 200 A-REIT Index (ASX: XPJ) soared up 1.88% this session.

Gold shares were in demand too, with the All Ordinaries Gold Index (ASX: XGD) galloping 1.87% higher.

Next came utilities stocks. The S&P/ASX 200 Utilities Index (ASX: XUJ) added 1.75% to its total.

Consumer staples shares didn’t miss out either, as you can see from the S&P/ASX 200 Consumer Staples Index (ASX: XSJ)’s 1.25% jump.

Healthcare stocks were in a similar boat. The S&P/ASX 200 Healthcare Index (ASX: XHJ) was upgraded by 1.15%.

Next, we had industrial shares, with the S&P/ASX 200 Industrials Index (ASX: XNJ) leaping 0.87%.

Financial stocks also had a day to remember. The S&P/ASX 200 Financials Index (ASX: XFJ) ended up lifting 0.49%.

Finally, energy shares recorded a win, evidenced by the S&P/ASX 200 Energy Index (ASX: XEJ)’s 0.22% uptick.

Top 10 ASX 200 shares countdown

Topping the charts this session was financial services stock Generation Development Group Ltd (ASX: GDG). Generation Group shares roared 7.31% higher this session to close at $2.79.

There wasn’t any news out from the company, but perhaps this was a rebound from recent lows.

Here’s the rest of today’s best:

ASX-listed company	Share price	Price change
Generation Development Group Ltd (ASX: GDG)	$2.79	7.31%
West African Resources Ltd (ASX: WAF)	$3.69	5.43%
Lovisa Holdings Ltd (ASX: LOV)	$23.57	5.04%
Lottery Corporation Ltd (ASX: TLC)	$5.19	4.64%
Pro Medicus Ltd (ASX: PME)	$165.73	4.50%
Light & Wonder Inc (ASX: LNW)	$116.00	4.50%
Magellan Financial Group Ltd (ASX: MFG)	$8.56	4.39%
WiseTech Global Ltd (ASX: WTC)	$33.63	4.25%
Life360 Inc (ASX: 360)	$20.34	4.15%
Genesis Minerals Ltd (ASX: GMD)	$7.37	3.95%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
• Why are Lovisa shares crashing 9% today?
• Life360 vs Droneshield: Which ASX tech stock is a better buy?
• Could WiseTech shares be worth $50 again?

Motley Fool contributor Sebastian Bowen 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 Life360, Light & Wonder Inc, Lovisa, The Lottery Corporation, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. The Motley Fool Australia has recommended Generation Development Group, Light & Wonder Inc, Lovisa, Pro Medicus, and The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.