3 ETFs to buy now

We take a look at three exchange-traded funds that investors could benefit from investing in

Exchange-traded funds (ETFs) have grown in popularity among investors over the past decade, with asset under management across the ETF universe now amounting to nearly $6 trillion. 

ETFs are essentially closed-ended funds, which can invest in a variety of assets such as stocks, bonds and commodities. There are both active ETFs, with portfolio managers picking stocks, and passive ETFs, which track an underlying stock or bond index. 

One of the reasons why ETFs are so popular is because their shares can be bought and sold on the stock market, making it easy for investors to trade them as and when they please. 

What’s more, ETFs tend to carry far lower fees. The lower the fee, the more of your money you get to keep. 

Here are three ETFs to invest in today. 

3 ETFS to buy now

iShares  FTSE 100 UCITS ETF 

The FTSE 100 has started the year off on a high. The index, which tracks the 100 largest UK listed companies, has performed well thanks to its heavy weighting towards resource stocks. 

It’s worth keeping in mind that even though the index has been closing at record highs lately, this isn’t an indication of future performance. 

But still the iShares Core FTSE 100 UCITS ETF remains a popular choice among investors for want to track the index without paying too much to buy the exposure. 

By investing in an ETF that tracks the FTSE 100, investors can profit from the huge gains seen by some of its biggest companies. These include BP, Shell, Glencore and BAE Systems. 

It has an ongoing charge of 0.07% and a dividend yield of 3.54%. It pays dividends quarterly. 

Invesco Physical Gold ETC 

The gold price recently hit an all-time high. At MoneyWeek we’ve always recommended holding a small amount of gold in your portfolio. 

The price of gold isn’t tied to the price of other assets, so it makes for a good hedge against macroeconomic headwinds such as inflation

Investing in gold via an ETF, or an ETC (ETCs work similarly to ETFs, but they invest in a commodity) is an easier way to do so than purchasing physical gold. 

Invesco Physical Gold ETC is fully backed by physical gold bars stored in the vaults of JP Morgan Chase Bank. It has an ongoing charge of 0.12%, allowing investors exposure to the metal for a low fee. 

L&G Quality Equity Dividends ESG Exclusions UK UCITS ETF

This fund tracks the performance of the FTSE All Share index, but screens out companies with poor ESG qualifications. 

But note that it holds British American Tobacco, which some investors don’t consider an ESG-friendly investment. 

The ETF invests in companies that distribute their income consistently and are able to sustain dividend payouts, so it might appeal to income investors

The ETF has a 12 month yield of 5.59%, and it pays out its dividend quarterly. It carries an ongoing charge of 0.25%.

Recommended

How to keep your dividends safe from the taxman
Personal finance

How to keep your dividends safe from the taxman

We look at ways to keep your dividends safe ahead of the decrease in tax allowances.
28 Mar 2023
Shoppers feel the pain as food inflation hits a record
Personal finance

Shoppers feel the pain as food inflation hits a record

Data from the analytics group Kantar showed food inflation hit a fresh peak in March 2023
28 Mar 2023
11 investment trusts for inflationary times
Investments

11 investment trusts for inflationary times

Inflation eats away at the value of your money, but these investment trusts can help you grow your wealth.
28 Mar 2023
Best junior stocks and shares ISA platforms
Isas

Best junior stocks and shares ISA platforms

A junior stocks and shares ISA is a great way to save for your child tax-efficiently. But it can be confusing deciding which investment platform to ch…
28 Mar 2023

Most Popular

Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Ofgem’s price cap is now predicted to fall below £2,000, based on average typical use, from July, for the first time since 2022. We have all the detai…
21 Mar 2023
Government plans could see NS&I boost interest rates
Savings

Government plans could see NS&I boost interest rates

The government-backed bank has a new funding target, which could prompt it to boost the rates on its Premium Bonds, ISAs and bonds.
16 Mar 2023
Where will house prices go in 2023?
House prices

Where will house prices go in 2023?

We explore what could happen to house prices in 2023 as the market continues to slow down.
24 Mar 2023