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3 ASX ETFs that could be strong buys in May
By Javier Vásquez
Posted on: May 01, 2025
3 ASX ETFs that could be strong buys in May
As we enter the second quarter of the year, investors are likely looking for opportunities to rebalance their portfolios and capitalize on emerging trends. Exchange Traded Funds (ETFs) offer a convenient and cost-effective way to gain exposure to various asset classes, sectors, or geographic regions. In this article, we'll highlight three ASX-listed ETFs that could be strong buys in May.
1. Vanguard Australian Shares Index Fund (VAS)
This ETF tracks the performance of the S&P/ASX 300 Accumulation Index, providing broad exposure to Australia's top companies. With a low fee structure and diversified portfolio, VAS is an attractive option for investors seeking stable returns with minimal volatility.
* Key benefits:
+ Low cost: 0.14% p.a.
+ Diversified portfolio: over 300 underlying stocks
+ Long-term track record
2. SPDR S&P/ASX 200 Fund (STW)
This ETF offers a more concentrated version of the Vanguard fund, tracking the performance of the top 200 ASX-listed companies. With a similar low-cost structure and broad diversification, STW is an attractive option for investors seeking to capture the growth potential of Australia's largest companies.
* Key benefits:
+ Low cost: 0.15% p.a.
+ Concentrated portfolio: top 200 ASX-listed companies
+ High liquidity
3. VanEck Vectors MSCI World ex Australia ETF (VEU)
For investors seeking to diversify their portfolios by gaining exposure to international markets, VEU is a strong contender. This ETF tracks the performance of developed and emerging markets outside of Australia, providing access to over 1,500 underlying stocks.
* Key benefits:
+ Diversified portfolio: over 1,500 underlying stocks
+ Global market exposure: developed and emerging markets
+ Low cost: 0.25% p.a.
In conclusion, these three ASX-listed ETFs offer compelling investment opportunities for investors in May. With their low costs, diversified portfolios, and attractive benefits, VAS, STW, and VEU are well worth considering as part of a comprehensive investment strategy. As always, it's essential to conduct thorough research and consult with a financial advisor before making any investment decisions.