2 ETFs delivering solid returns

The 2 exchange-traded funds (ETFs) in this article are delivering solid returns including Betashares Global Cybersecurity ETF (ASX:HACK).
The post 2 ETFs delivering solid returns appeared first on The Motley Fool Australia. –

Exchange Traded Fund (ETF)

The two exchange-traded funds (ETFs) in this article are delivering solid returns.

What are exchange traded funds?

As linked above, ETFs are investment vehicles that allow the investor to buy a whole group of businesses at once. With some of them you can buy a decent number of shares with one investment – 50 to 100 holdings. Other investments give exposure to thousands of businesses at once.

Some ETFs are focused are providing dividend income to investors like Vanguard Australian Shares High Yield ETF (ASX: VHY) and BetaShares S&P 500 Yield Maximiser (ASX: UMAX).

The following ETFs have been generating ASX-beating returns:

Betashares Global Cybersecurity ETF (ASX: HACK)

This ETF is provided by BetaShares, one of the largest ETF providers in Australia.

BetaShares explains that the fund’s portfolio includes global cybersecurity giants, as well as emerging players, from a range of global locations. With cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future.

Mr Fouse, a partner and lead strategist with Pinkston, wrote this year for Forbes about cybercrime: “Not long after the outbreak first took hold, dozens of hospitals, medical labs and health care organizations in the U.S. and abroad were the victims of ransomware attacks. At around the same time, the FBI’s Internet Crime Complaint Center began receiving 3,000 to 4,000 daily cybersecurity complaints — a more than threefold increase from the 1,000 daily complaints it was receiving prior to the pandemic.

And today, with more Americans working from home, cybersecurity risks are at an all-time high. A slew of recent phishing attacks appeared to specifically target remote workers, preying upon the COVID-19 moment to steal, hack and install malware.

In a report released on March 11, the U.S. Cyberspace Solarium Commission (CSC) revealed the full extent of America’s cybersecurity vulnerabilities. According to the CSC, the costs of cybercrime are only increasing, and a concerted cyberattack on America’s infrastructure could be devastating.”

Looking at the Betashares Global Cybersecurity ETF’s biggest holdings its largest positions are: Crowdstrike, Zscaler, Okta, Cloudflare, Cisco Systems, Accenture, F5 Networks, Palo Alto, Leidos and Science Applications International. It currently has around 40 holdings in total.

Most of these holdings are based in the US, but there is also exposure to other countries including the UK, France, Israel, Japan and South Korea.

It has an annual management fee of 0.67% per annum. At the end of November 2020, Betashares Global Cybersecurity ETF had produced net returns of 19.2% since inception in August 2016, 21.5% per annum over the past three years and 18.3% over the past year.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

VanEck says that this ETF gives investors exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages according to Morningstar’s equity research team.

It has a total of almost 50 holdings. Its biggest holdings are: Applied Materials, Corteva, Charles Schwab, Microchip Technology, Boeing, Compass Minerals International, Aspen Technology, Yum! Brands, Cheniere Energy and American Express.

As mentioned, all of this ETF’s businesses are based in the US. The ETF has diversification to various sectors. In terms of allocations of more than 10%, it has a 22.2% weighting to IT, an 18.2% exposure to health care, a 17.1% holding of financials shares, 11.3% is industrial shares and 10.1% is allocated to consumer staples.

This ETF has an annual management fee cost of 0.49% per annum. Over the past five years, the VanEck Vectors Morningstar Wide Moat ETF had delivered an average return per annum of 16%. That even outperformed the S&P 500’s return of 13.6% per annum over the past five years.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia owns shares of and has recommended BetaShares S&P500 Yield Maximiser. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 ETFs delivering solid returns appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!