Exchange traded funds (ETFs) are often viewed as boring investments for boring investors, but I think this view is misguided. Sure, market-wide ETFs like the iShares Core S&P/ASX 200 ETF (ASX: IOZ) are highly diversified funds that will literally give you an average return without much effort.
But ETFs come in all shapes and sizes these days, and I think there are some out there that are perfect for growth investors who take a higher-octane approach to the share market.
Here are two of my favourites for such an approach.
BetaShares Global Cybersecurity ETF (ASX: HACK)
Apart from the comically relevant ticker symbol, I think this ETF is a fantastic choice for any future-proof growth portfolio. HACK tracks a list of global companies that specialise in cybersecurity and information protection.
This is an area I can only see growing as more and more of our daily lives and data moves into the cloud. The need for both companies and governments to protect themselves from cyber warfare and cybercrime becomes more pressing with each passing year (as evidenced by the allegation of hacking in the 2016 US Presidential elections). Thus, with holdings like Palo Alto, Cisco and Okta, I think this ETF is a phenomenal asset to have in a growth portfolio.
BetaShares Nasdaq 100 ETF (ASX: NDQ)
Although NDQ has a far less interesting ticker, I think this ETF is one of the best houses of growth on the ASX today. By tracking the 100 largest companies in the US Nasdaq index, you are getting exposure to most of the big American names in tech – everything from Apple, Alphabet (Google), Netflix and Facebook to Uber, Tesla, PayPal and NVIDEA. All of these companies are growth giants, and such a concentrated collection would be of great benefit to any investor in my view.
I think these 2 ETFs would make worthwhile additions to any growth investor’s portfolio – or any future-looking ASX portfolio for that matter. Both ETFs hold stocks that are changing the world as we know it, which is something I think investors should get a piece of.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sebastian Bowen owns shares of Facebook and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Facebook and Tesla. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia has recommended Facebook. 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.
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