Top 10 ASX ETFs to Watch in September 2023

Top 10 ASX ETFs to Watch in September 2023

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Exchange-traded funds (ETFs) are a useful investment product that most investors may be familiar with. ETFs can offer a variety of investment strategies while being straightforward to purchase as any equity on the stock market.

Here, we go over 10 ETFs listed on the Australian Securities Exchange (ASX) from various issuers that might be worth watching this month.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Expense ratio: 0.25%

According to Vanguard, the Vanguard Australian Shares High Yield ETF seeks to track the return of the FTSE Australia High Dividend Yield Index before considering management fees, expenses, and tax. The ETF offers diversified exposure to the Australian equities market, with a focus on high-yield dividends, offering a source of income for investors that they can choose to either reinvest, reallocate, or withdraw from their portfolio without closing their position, giving them the potential to still gain from capital appreciation.

Global X FANG+ ETF (ASX: FANG)

Expense ratio: 0.35%

Global X’s FANG ETF is designed to track the FANG+ index, comprised of some of the largest US stocks in the technology sector. The ETF provides access to multiple areas of the technology sector, famous for significant capital appreciation, growth and leadership. It’s worth noting that the index only holds ten companies, all within the same tech sector, which can sometimes be volatile. Investors in this ETF should be sure they have a good understanding of the sector and the concentration risk that comes with investing in FANG.

SPDR ASX 200 Resources Fund (ASX: OZR)

Expense ratio: 0.40%

SPDR’s ASX 200 Resources fund offers targeted exposure to the Australian energy, metals and mining industries. All the companies held by the fund are components of the ASX 200 index, meaning they are mostly reliable large-cap stocks and highly correlated to the Australian benchmark. Investors in this ETF should consider the volatility and cyclical nature of commodities and how that might affect their portfolio.

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

Expense ratio: 0.69%

Global X’s battery & lithium ETF tracks the Solactive Battery Value-Chain Index and provides a simple way to give your portfolio exposure to the fast-growing battery technology sector, spurred on by global trends moving towards electric and hybrid cars which rely on technology provided by these battery companies as well as the lithium required to manufacture them. Investors in this fund should remember that volatility could come from technological changes or be affected by commodity prices.

VanEck Australian Resources ETF (ASX: MVR)

Expense ratio: 0.35%

VanEck’s Australian Resources ETF aims to track the MVIS Australia Resources index. It primarily focuses on listed companies on the ASX that derive at least 50% of their revenue from the resources sector, including oil, gas, minerals, and more. The ETF allows investors to speculate and diversify their portfolio with the Australian commodities sector.

BetaShares Crude Oil Index ETF – Currency Hedged (ASX: OOO)

Expense ratio: 0.69%

According to Betashares, OOO aims to track the price of West Texas Intermediate crude oil futures, hedged for currency exposure on the AUD/USD currency pair. The ETF tracks the S&P GSCI Crude Oil Index, offering a hedge against inflation or a simple tool to speculate on the performance of oil as a commodity. Crude oil has been a high-performing asset over the past few years, facing significant volatility, giving opportunities to prudent traders. Investors in this fund should note that it is synthetic, meaning the fund does not hold any underlying assets but uses financial derivatives to mimic the index's performance.

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

Expense ratio: 0.49%

BetaShares Global Sustainability Leaders is an ETF that tracks the Nasdaq Future Global Sustainability Leaders Index. It offers exposure to a diversified mixture of global companies leading in Environmental, Social, and Governance (ESG) practices. ETHI gives a solid avenue of exposure to those looking to ensure they have sustainability built into their investment portfolio.

iShares Global 100 ETF (ASX: IOO)

Expense ratio: 0.40%

The iShares Global 100 ETF tracks the performance of the S&P Global 100 Index. It offers a window to expose yourself to a diversified list of some of the largest and most well-established companies across the globe. The equities that comprise the index are usually industry leaders with high degrees of resilience in their sector. IOO provides an opportunity for capital growth while still maintaining a lower risk profile, given the size and stability of the companies within the underlying index.

VanEck Australian Banks ETF (ASX: MVB)

Expense ratio: 0.28%

The VanEck Australian Banks ETF gives investors an instrument to add a variety of Australian banks to their investment portfolio. Its purpose is to track the performance of the MVIS Australia Banks Index, which contains most of Australia’s largest and most reliable banks. MVB offers focused exposure to the Australian finance industry, known for its stable revenues and dividend payouts. While somewhat diversified across multiple different banks, this ETF is still concentrated in one sector, giving a level of concentration risk.

ETFMG Prime Cyber Security ETF (ASX: HACK)

Expense ratio: 0.67%

ETFMG’s Prime Cyber Security ETF is an option for those who want to speculate on the global cyber security sector. HACK tracks the NASDAQ Consumer Technology Association Cybersecurity Index, containing an array of companies primarily involved in the cybersecurity sector, including software, hardware, and other services aiming to protect from cyber-attacks. In a time where data is increasingly valuable, cyber-attacks become an incredible risk for many companies, giving many opportunities for growth in the cybersecurity sector, which could result in capital appreciation for holders of HACK.

Key Takeaways

Investing in ETFs can provide investors with various benefits to add to their portfolios. This list comprises a selection of ASX-listed ETFs that could offer various ways to participate in the financial markets. Always keep in mind that investors should conduct their research, as this list does not take into account your financial goals and investing strategy.