Here’s why these ETFs could be top options for growth investors…
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If you’re a fan of growth shares, then you might want to take a look at the exchange traded funds (ETFs) listed below.
These ETFs give investors access to a collection of some of the highest quality growth shares in the world. Here’s why they could be fantastic additions to most portfolios:
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
If you’re interested in gaining exposure to the growing Asian tech sector, then you can achieve this with the BetaShares Asia Technology Tigers ETF. Among the fund’s holdings you will find the likes of Alibaba, Baidu, JD.com, Meituan Dianping, Pinduoduo, Samsung, Tencent.
In respect to Pinduoduo, it is an ecommerce platform that offers a wide range of products, This includes everything from daily groceries to home appliances. However, it’s not your typical platform. Pinduoduo connects distributors with consumers directly through an interactive shopping experience, allowing them to team up to buy items in bulk at lower prices. In March, the company revealed that it had 788 million annual active customers, overtaking ecommerce behemoth Alibaba.
Another company in the fund is Meituan Dianping. Its apps connect consumers with local businesses for food deliveries, hotel bookings, movie tickets, and countless other services. During the second quarter of FY 2020, the company was making 24.5 million food deliveries per day and had 476.5 million users at the end of September. Meituan also recently raised US$10 billion from investors in order to advance its research on developing autonomous delivery vehicles. This includes drone and self-driving car deliveries.
VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)
Another ETF filled with growth shares to consider is the VanEck Vectors Video Gaming and eSports ETF.
This popular ETF gives investors exposure to a portfolio of the largest companies involved in video game development, hardware, and esports.
Among the companies included in the fund are giants such as graphics processing unit developer Nvidia and gaming giants Take-Two and Electronic Arts. The latter two companies are responsible for the Grand Theft Auto and FIFA games, respectively, among others. Whereas Nvidia sparked the growth of the PC gaming market in 1999, redefining modern computer graphics and revolutionising parallel computing. Since then, its GPU deep learning ignited modern artificial intelligence, which is the next era of computing.
VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports. It also points out that the fund gives investors the opportunity to diversify their portfolio by providing tech options outside FAANG stocks.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.