The BetaShares Asian Technology Tigers ETF (ASX: ASIA) is one of the 2 ASX tech ETFs rated by Motley Fool analysts as a buy today
The post 2 ASX tech ETFs analysts rate as a ‘buy’ today appeared first on Motley Fool Australia. –
As our reporting revealed this week, ASX tech exchange-traded funds (ETF) are some of the most popular ETF investments on our share market today. Although market-wide index funds like the iShares Core S&P/ASX 200 ETF (ASX: IOZ) are always going to be popular, the evidence suggests that ASX investors are also finding value in using ETFs to track the tech sector specifically.
That’s probably because many of the world’s largest and well-known tech companies (such as the FAANG stocks) are not listed on the ASX. But which ETFs should you pursue? Well, the Motley Fool analysts rate 2 such tech ETFs as ‘buys’ today. Here they are.
BetaShares Nasdaq 100 ETF (ASX: NDQ)
This ETF from BetaShares is actually more of an index fund than a pure tech ETF. The Nasdaq is one of the 2 major stock exchanges in the US. It tends to have a reputation as the ‘cooler’ one though. As such, most of the biggest names in tech choose to list on it. That gives the Nasdaq 100 a very heavy tech weighting (almost 50%).
So, this ETF holds the largest 100 stocks in the Nasdaq index. It’s largest holdings are dominated by ‘big tech’, and include (in order) Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Facebook Inc (NASDAQ: FB), Amazon.com Inc (NASDAQ: AMZN) and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL). Other names you’ll see in NDQ include Tesla Inc (NASDAQ: TSLA), Adobe Inc (NASDAQ: ADBE), Netflix Inc (NASDAQ: NFLX) and PayPal Holdings Inc (NASDAQ: PYPL).
BetaShares Nasdaq 100 has returned an average of 19.54% per annum over the past 5 years.
The EFT is currently rated as a ‘buy’ on the Motley Fool’s flagship Share Advisor service. Scott Phillips and the team at SA like its instant diversification across currencies and geography, as well as “exposure to some of the world’s highest quality companies with lots of growth potential”.
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
Another tech-based ETF, this fund instead tracks the biggest tech companies outside the US, more specifically in Asia. We might think of companies like Amazon, Alphabet and Facebook when it comes to big tech.
However, there are many highly successful companies outside the US sphere to consider as well. Companies of this mould can be found in ASIA. This fund is heavily weighted towards Chinese companies (at 56.8%), but also feature Taiwan, South Korea, India and Hong Kong.
Some of its top holdings include Samsung Electronics, Taiwan Semiconductor Manufacturing Co, Tencent Holdings, Meituan Dianping, Alibaba Group, JD.com and Baidu.
ASIA has returned an average of 32% per annum since its inception in 2018. That includes 66.56% over the past year alone.
ASIA is currently a ‘buy’ recommendation on the Motley Fool’s Extreme Opportunities service. Doc and the team at EO like this fund as a “one-stop-shop for exposure to fast-growing, top-notch Asian technology businesses”.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Baidu, Facebook, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Baidu, Facebook, Microsoft, Netflix, PayPal Holdings, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, and long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, BETANASDAQ ETF UNITS, Facebook, Netflix, and PayPal Holdings. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.