Exchange-traded funds (ETFs) seem to be all the rage at the moment. I can understand why, most ETFs offer investors a way to quickly diversify into a range of shares for a cheap management fee.
However, as an investor I’m still looking to beat the generic ‘average’ shares return, whether that’s the Australian index or the global MSCI index.
Here are three ETFs I’m really interested in:
BETANASDAQ ETF UNITS (ASX: NDQ)
This ETF gives investors exposure to 100 of the biggest technology businesses on the NASDAQ in the US. The large technology shares have been the driving force for international shares in recent years and that’s likely to continue.
Facebook, Alphabet, Apple, Microsoft and Amazon are all growing their businesses at impressive rates considering how big they already are. The world is just going to become more technological, so investors may as well exclude all the large blue chips that aren’t growing and focus on the ones that are. Which is exactly what this ETF provides with businesses growing revenue at impressive double digit rates. This ETF could be volatile, but that is the price we have to pay to invest in the better growth shares.
Betashares Global Cybersecurity ETF (ASX: HACK)
This ETF gives investors exposure to some of the biggest companies that provide cybersecurity. Some of its top holdings include Akamai Technologies, Palo Alto Networks, Symantec, Cisco Systems and VMware.
Government organisations and businesses are increasingly attractive targets for hackers because they have so much of their customer’s details on their systems. It’s highly likely that cybersecurity businesses will be able to achieve better growth than most other industries.
BetaShares Global Agriculture ETF (ASX: FOOD)
This ETF gives investors exposure to some of the largest food-related companies in the world. Food is a very important commodity to us and demand is only going to increase because the human population is predicted to continue going up – which means food companies should become more valuable.
Its biggest holdings are Deere & Co, Archer Daniels Midland, Kubota and Tyson Foods.
I like all three ETF ideas and hopefully they produce better returns than the typical MSCI index fund. Some NASDAQ businesses are trading at a very high valuation, so it may be better to wait for a better opportunity.
If you want to stick to individual shares for good growth then these top shares should hopefully all deliver market-beating returns.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.