Here’s why the BetaShares Asia Technology Tigers ETF (ASX:ASIA) could be the best ETF for ASX investors to buy right now…
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Here’s why this good be a great option for investors:
What is the BetaShares Asia Technology Tigers ETF?
The BetaShares Asia Technology Tigers ETF provides investors with exposure to a number of the most exciting tech shares in the Asia market (excluding Japan).
BetaShares notes that this is a high-growth sector that is under-represented in the Australian share market.
Furthermore, thanks to its younger and tech-savvy population, the fund manager points out that Asia is surpassing the West in respect to technological adoption. As a result of this, the sector is expected to remain a growth sector for a long time to come.
What shares will you be buying?
Among the 50 “technology tigers” included in the fund are the likes of Alibaba, Baidu, JD.com, Meituan Dianping, Pinduoduo, Samsung, and Tencent.
Alibaba is largely regarded as the Amazon of China. Across its Alibaba, Taobao, and Tmall brands, the company has almost 800 million active customers. To put that into context, Kogan.com Ltd (ASX: KGN) reported active customers of 1.7 million during the first half of FY 2021.
Given the size of Alibaba’s reach, the company is estimated to control over half of China’s ecommerce market. The ecommerce giant also has a presence offline with a growing network of grocery stores, hypermarkets, and department stores.
Another share you’ll be buying a slice of is Pinduoduo. It is another ecommerce company with a significant reach. Pinduoduo’s platform offers a wide range of products from daily groceries to home appliances.
But rather than selling products like Kogan does, it connects distributors with consumers directly through an interactive shopping experience. This allows shoppers to team up to buy items at lower prices. At the end of September, it was serving 731 million active buyers.
How has it been performing?
The BetaShares Asia Technology Tigers ETF has been a strong performer in recent years and during the pandemic.
According to BetaShares, the ETF has delivered an average return of 36.5% per annum since its inception in September 2018. Whereas the index it is tracking has returned an average of 29% per annum over the last five years.
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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. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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