2 great ETFs to buy for growth potential

The 2 exchange-traded fund (ETFs) in this article could be buys for the growth potential, like Betashares Global Cybersecurity ETF (ASX:HACK).
The post 2 great ETFs to buy for growth potential appeared first on The Motley Fool Australia. –

Exchange Traded Fund (ETF)

Exchange-traded funds (ETFs) have the ability to give us exposure to a large group of businesses from a particular location or sector. Some ETFs have delivered a lot of growth.

Here are two that have outperformed the S&P/ASX 200 Index (ASX: XJO) over the past few years.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The US isn’t the only place to find technology giants with big addressable markets.

This ETF is about giving investors exposure to the 50 largest Asian technology companies outside of Japan through a single investment.

BetaShares says that due to its younger, tech-savvy population, Asia is surpassing the West in terms of technological adoption and the sector is anticipated to remain a growth sector. The ETF provider also says that technology is under-represented in the Australian share market and it can complement investors’ US tech exposure.

You may be wondering about some of the Asian tech giants that make up this ETF’s portfolio holdings. The biggest five positions are: Taiwan Semiconductor Manufacturing, Samsung Electronics, Meituan, Tencent and Alibaba. These positions alone account for 47.5% of the portfolio. The next five are: Pinduoduo,, Netease, Sea and Infosys.

In terms of geographical diversification, just over half of the portfolio is made up of Chinese businesses. There’s another 20.7% based in Taiwan, 19.2% from South Korea and 5.1% from India.

It has an annual management fee of 0.67% per annum. Whilst that’s higher than many other index-based ETFs, it hasn’t harmed the returns too much. At 29 January 2021, it had produced a net return of 71.5% over the last year and an average return per annum of 37.2% since inception in September 2018.

Betashares Global Cybersecurity ETF (ASX: HACK)

This is another ETF provided by BetaShares. With this one, it provides a focus on a particular industry: cybersecurity.

There have been plenty of high profile cyber attacks over the past decade. BetaShares says that with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future.

At the moment there are around 40 positions in the portfolio, represented by both global giants and smaller niche emerging players.

Its biggest holdings include: Crowdstrike, Zscaler, Cisco Systems, Accenture, Splunk, Fireeye, Palo Alto Networks, Proofpoint, Fortinet and Sailpoint Technologies.

Whilst over half of the Betashares Global Cybersecurity ETF portfolio is classified as ‘systems software’, there are other categories like IT consulting and other services, communications equipment, internet services and infrastructure, application software and aerospace and defence.

Almost 90% of the portfolio is invested in businesses listed in the US, though many of them generate earnings from multiple countries. Other countries with a weighting in the portfolio of more than 1% include the UK, Israel, Japan and France.

This ETF also has an annual management fee of 0.67% per annum. Its net returns have also been better than the ASX in recent years. Over the last year the net return from Betashares Global Cybersecurity ETF was 25.2%, over the last three years the ETF has made an average return per annum of 25.1% and since inception in August 2016 the ETF has made average returns per annum of 20.9%.

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

Motley Fool contributor Tristan Harrison 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 owns shares of BETA CYBER ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 great ETFs to buy for growth potential 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!