Exchange-traded funds (ETFs) are not normally the domain of the growth investor. Index funds like the Vanguard Australian Shares Index ETF (ASX: VAS) are very popular investments in this space. But they are usually favoured by passive investors who are not trying to beat the market long-term.
But there are ETFs out there that are more growth-orientated. These have proven themselves to deliver market-beating performances (as well as market-beating ticker codes!). Here are 3:
3 growth ETFs to hold for the long term
Betashares Global Cybersecurity ETF (ASX: HACK)
Aside from this fund’s brilliant ticker code, I also think it’s worth a look at from a growth perspective. As its name suggests, HACK invests in companies around the world that operate in the cyber security sector. This is an industry that has been growing enormously over the past decade, both in size and importance. I also think there’s plenty of room for future growth as our reliance on the internet continues to accelerate.
HACK has returned an average of 16.7% per annum since listing in 2016. I believe these returns, along with the future-proof nature of the cyber security industry, mean this ETF would be perfect for growth investors.
ETFS Morningstar Global Technology ETF (ASX: TECH)
This ETF is set up to track a basket of tech stocks the fund believes have market-leading positions as well as sustainable competitive advantages. By its nature, TECH invests in growth companies and has returned a pleasing 24.37% per annum since its inception in 2017. Some of its current holdings include Microsoft, Fortinet, Splunk and Intel.
As such, TECH is a perfect choice for any tech-focused growth investor. It might also suit those investors looking to increase their global exposure to the technology sector as a whole.
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
This ETF (another from BetaShares) tracks tech stocks that hail from Asian markets such as China, Taiwan and Korea. Shares from these countries don’t often find their way into Australian investment portfolios. Yet, in my opinion, they present some of the best growth opportunities for the 21st century.
ASIA’s primary focus is on tech companies and you’ll find some familiar names in its holdings. There’s Afterpay Ltd’s (ASX: APT) new business partner Tencent Holdings, as well as Alibaba, JD.com and Baidu (sometimes called the Google of China). ASIA has returned an average of 14.6% per annum since its inception in 2018.
For a diversity play, as well as exposure to significant growth opportunities, I believe these 3 ETFs are top picks for ASX growth investors today!
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ETFS Morningstar Global Technology ETF. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia owns shares of AFTERPAY T FPO and 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.