2 quality ETFs to buy that are making big returns

There are some quality exchange-traded funds (ETFs) that could be a buy. They have made strong returns over the last few years.
The post 2 quality ETFs to buy that are making big returns appeared first on The Motley Fool Australia. –


There are some exchange-traded funds (ETFs) that have been generating strong returns over the last few years.

You may have heard of some of the largest ETFs like Vanguard Australian Shares Index ETF (ASX: VAS) and BetaShares Australia 200 ETF (ASX: A200). Those two just focus on the 300 and 200 largest shares on the ASX, respectively.

But there are other ETFs that give international diversification and have produced stronger returns:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This ETF is provided by VanEck, one of the biggest providers in Australia. It says that VanEck Vectors Morningstar Wide Moat ETF gives investors exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages according to Morningstar’s equity research team.

The ETF utilises Morningstar’s research process to find businesses that possess wide economic moats and are trading at attractive prices relative to Morningstar’s estimate of fair value.

All of the businesses that it’s invested in are listed in the US, but the underlying earnings from the companies that make up the portfolio can (and many do) generate earnings from across the world.

Looking at the latest monthly portfolio disclosure, it had 50 holdings with the largest 10 positions being John Wiley & Sons, Charles Schwab, Corteva, US Bancorp, Wells Fargo, Constellation Brands, Bank of America, Boeing, Yum! Brands and Cheniere Energy.

The sector allocation of the ETF is fairly diversified, these are the biggest five weightings with the percentage allocated: healthcare (18.8%), financials (17.6%), information technology (17.5%), industrials (12.2%) and consumer staples (10.8%).

VanEck Vectors Morningstar Wide Moat ETF has annual management costs of 0.49% per annum.

Its returns over the past five years has been 16.6% per annum, which was 2% per annum better than the S&P 500.

Betashares Global Cybersecurity ETF (ASX: HACK)

This ETF is a way for investors to get exposure to the world’s leading cybersecurity companies in a single ASX trade. The portfolio includes global cybersecurity giants, as well as emerging players, from a range of global locations.

BetaShares says that with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future.

A vast majority of the portfolio is made up of businesses listed in the US, but there are representations from other countries like the UK, Israel, Japan and France.

Its biggest 10 positions on 27 January 2021 were: Crowdstrike, Zscaler, Cisco Systems, Accenture, Splunk, Fireeye, Proofpoint, Juniper Networks, F5 Networks and Fortinet.

This ETF has annual management fees of 0.67%. In terms of returns, Betashares Global Cybersecurity ETF has made net returns of 25.6% per annum over the last three years and 21.4% since inception in August 2016.

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 BETA CYBER ETF UNITS. 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 quality ETFs to buy that are making big 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!