Investing in exchange-traded funds (ETFs) inside an ISA or Self-Invested Private Pension (SIPP) could be a good funding technique. With these merchandise, traders can get entry to a spread of various shares (and funding themes) at a low value.

In search of ETFs which have the potential to ship robust long-term returns? Listed below are three standout merchandise price a better look.

A give attention to high quality

One product that I see as an awesome ‘core holding’ is the iShares Edge MSCI World High quality Issue UCITS ETF (LSE: IWQU). This can be a international product nonetheless, it solely invests in high-quality corporations which have steady earnings and powerful steadiness sheets.

This give attention to high quality could make a distinction to returns, particularly in down markets. This yr, for instance, the ETF’s solely down about 1% versus a drop of about 7% for the usual iShares international ETF.

After all, the draw back to this product is that it excludes loads of well-known corporations. For instance, it doesn’t maintain Amazon at current.

The truth that it excludes loads of corporations can result in underperformance versus the market at some phases of the market cycle. All issues thought-about nonetheless, I reckon the give attention to high quality is a serious plus.

An ETF for the AI revolution

I’m a giant fan of thematic ETFs, and one I just like the look of right now is the iShares AI Innovation Lively UCITS ETF (LSE: IART). As its identify suggests, this product focuses on corporations which might be lively within the synthetic intelligence (AI) house.

Over the following decade, the AI trade’s more likely to get exponentially greater as companies and people undertake the know-how to extend effectivity. With this ETF, traders can get entry to corporations on the coronary heart of the revolution, akin to Nvidia, Amazon, and Snowflake.

Traders do have to handle danger rigorously right here although. Right this moment, AI’s nonetheless in its infancy and the expansion story within the years forward will not be linear (that means that inventory costs are more likely to be risky).

This ETF’s additionally fairly new (it was solely launched in February). So it doesn’t have a long-term observe document.

Larger than AI?

Whereas AI‘s going to be large, one space of know-how that may very well be even greater is cybersecurity. Some specialists imagine that this may very well be a $2trn trade within the years forward.

One ETF that’s targeted on this theme is the Authorized & Basic Cyber Safety UCITS ETF (LSE: ISPY). This gives publicity to round 35 totally different cybersecurity shares globally.

There are some nice names on this ETF together with the likes of CrowdStrike, Fortinet, and Palo Alto Networks. All of those corporations are producing robust development right now as companies scramble to guard themselves from harmful cyber threats.

Once more although, danger must be rigorously managed right here. Given its give attention to one particular trade, this ETF isn’t properly diversified.

And whereas the cybersecurity trade has loads of long-term development potential (and can be fairly defensive in nature), cybersecurity shares may be risky. So with this ETF, place sizing is necessary.