MENU

Here’s why I’m excited by this brand-new ETF

There aren’t too many exchange-traded funds (ETFs) that get me excited. However, the newly-launched BetaShares Asia Technology Tigers ETF (ASX: ASIA) looks like an exciting new opportunity.

BetaShares is one of the most versatile ETF providers in Australia with many different offerings such as BETANASDAQ ETF UNITS (ASX: NDQ), BetaShares Global Agriculture ETF (ASX: FOOD) and Betashares Global Cybersecurity ETF (ASX: HACK).

The new Asia Technology Tigers ETF looks to give exposure to 50 of the most innovative and disruptive technology companies in Asia. It is almost like the Asian version of the NASDAQ ETF.

Asia is a fast-growing economic region with an increasingly tech savvy population that uses their phones to do a lot of their purchasing, socialising and so on. Some of the Asian giants completely dominate in China, just like Facebook, Google (Alphabet) and Amazon do in Western countries.

Holdings that represent 7.5% of the ETF portfolio, or more, are: Taiwan Semiconductor Manufacturing, Alibaba, Samsung, Tencent and Baidu. Other top-10 exposures include Infosys, Hon Hai Precision Industry, SK Hynix, JD.com and NetEase.

Whilst these businesses may dominate in their own countries, they also have plans to expand in dozens of other countries. They could become global titans in their own rights.

The risks of Asian businesses are certainly higher than typical American or ASX businesses. Ownership issues, governments and management are all potential problems. I wouldn’t put 50% of my portfolio into this ETF.

However, there is potentially less risk to this ETF than say investing in Chinese banks due to the high level of debt.

Foolish takeaway

There are now quite a few different ways to get exposure to investments in Asia with this ETF along with Vanguard FTSE Asia Ex Japan Shares Index ETF (ASX: VAE) and UBS IQ MSCI Asia APEX 50 Ethical ETF (ASX: UBP).

The current trade war may present a good opportunity to buy into Asian shares. Of course, it could keep getting worse between the US and China but that might just make it more attractively valued.

The new BetaShares Asia Technology Tigers ETF could generate strong returns over the long-term if the Asian economy and population keeps going more technological. It is fairly likely I will choose to invest into it over the next year. 

Another to profit from Asian growth is with this highly rated ASX growth stock that is expanding in Asia.

OUR #1 dividend pick to grow your wealth now is revealed for FREE here!

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!