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2 tech ETFs delivering strong long-term returns

The 2 exchange-traded funds (ETFs) in this article are delivering strong long-term returns, including Betashares Nasdaq 100 ETF (ASX:NDQ).
The post 2 tech ETFs delivering strong long-term returns appeared first on The Motley Fool Australia. –

Block letters 'ETF' on yellow/orange background with pink piggy bank

There are a few tech-heavy exchange-traded funds (ETFs) that are delivering very strong returns over the long-term. They could be worth thinking about right now.

Some ETFs are based on a large index of shares – sometimes hundreds or even thousands of names like iShares S&P 500 ETF (ASX: IVV) or Vanguard MSCI Index International Shares ETF (ASX: VGS).

However, the below two ETFs are based on a smaller group of high-performing technology businesses that have been making higher levels of returns for investors. Just remember that past performance is not an indicator or prediction of future performance:

Betashares Nasdaq 100 ETF (ASX: NDQ)

As the name might suggest, this ETF has 100 holdings of businesses that are listed on the NASDAQ – a stock exchange in the US.

There are plenty of the world’s most recognisable names in the portfolio including Apple, Microsoft, Amazon.com, Tesla, Facebook, Alphabet, NVIDIA and PayPal.

This ETF is one of the easiest ways for ASX investors to get a high level of exposure to those big American tech names.

The ‘FAANG’ group of shares – which includes Netflix – have performed strongly over the long-term and managed to get through the COVID-19 period without too much difficulty.

Betashares Nasdaq 100 ETF has been producing strong returns for investors for several years. Since inception in May 2015, the ETF has produced an average net return per annum of 20.7%. Over the last three years the net return per annum has been 24.2%.

But there’s more to this ETF than just the biggest global tech companies. It owns lots of other quality businesses like Adobe, Broadcom, PepsiCo, Texas Instruments, Costco, Qualcomm, Starbucks, Applied Materials, Advanced Micro Devices, Booking Holdings, Micron Technology, Intuitive Surgical, Activision Blizzard and MercadoLibre.

The ETF’s management fees are not too burdensome at 0.48% per annum.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The US isn’t the only place that you can find giant technology businesses with powerful market positions and growing economic strength.

Asia has a rapidly growing tech sector too. Betashares Asia Technology Tigers ETF looks to invest in the 50 largest Asian tech companies outside of Japan.

Betashares explains 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.

This investment gives exposure to these businesses which have a weighting of more than 5% in the portfolio: Samsung Electronics, Taiwan Semiconductor Manufacturing, Tencent, Meituan and Alibaba.

Other notable mentions that have a weighting of more than 3% include: JD.com, Pinduoduo, Infosys, Netease, SK Hynix, Baidu and Sea.

This ETF has produced an enormous return over the last year, with a net return of 69.6%. Since inception in September 2018, it has made a net return of 36.5% per annum. These numbers are after the management fee of 0.67% per annum. 

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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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS, iShares Trust – iShares Core S&P 500 ETF, and Vanguard MSCI Index International Shares 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 tech ETFs delivering strong long-term returns appeared first on The Motley Fool Australia.

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