When it comes to investing in exchange-traded funds (ETFs), I think some of the best options out there are growth ETFs. ETFs have a reputation for being ‘passive’ investments best suited to investors who want to put them in the bottom drawer and never look at them again. Whilst that’s true for index funds like the iShares Core S&P/ASX 200 ETF (ASX: IOZ), not all ETFs should be tarred with this brush. So here are 3 high-growth ETFs that I think all growth investors should be looking at investing in today.
3 high-growth ETFs
1) BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)
This is a relatively new ETF, having only started out back in March of this year. However, since then ATEC has been on an absolute tear, rising more than 40% since its inception (and that includes through the March crash). I like ATEC as it’s one of the only ASX ETFs purely dedicated to tracking ASX tech companies. You’ll find the popular buy now, pay later share Afterpay Ltd (ASX: APT) and online furniture hawker Temple & Webster Group Ltd (ASX: TPW) here, as well as other WAAAX shares like Xero Limited (ASX: XRO) and Appen Ltd (ASX: APX). If you’re bullish on the ASX tech sector, I think this ETF is a great candidate for your portfolio today.
2) ETFS FANG+ ETF (ASX: FANG)
This ETF is also a relatively new addition to the ASX, having started life in February of this year. FANG invests in the shares held in the NYSE FANG+ Index. This includes the eponymous FAANG stocks of Facebook Inc (NASDAQ: FB), Apple Inc. (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX) and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL). It also includes a few more tech high flyers such as Microsoft Corporation (NASDAQ: MSFT), Tesla Inc (NASDAQ: TSLA), Alibaba Group (NYSE: BABA), NVIDIA Corporation (NASDAQ: NVDA), Baidu Inc (NASDAQ: BIDU) and Twitter Inc (NYSE: TWTR).
Having only these 10 holdings makes FANG a highly concentrated investment, but with its growth titan holdings, investors might not mind too much. FANG has also had a stellar start to life, delivering a return of 45.91% since its inception. If you don’t have as many of these companies in your portfolio as you might otherwise like to, I think FANG is a perfect choice for a growth-orientated portfolio today.
3) Betashares Global Cybersecurity ETF (ASX: HACK)
Our final high-growth ETF is another fund from BetaShares, this time specialising only in companies within the cybersecurity space. With the increasing importance of the digital world to corporations and governments globally, I see a bright future for this sector. And this ETF gives us an easy ticket in.
HACK holds a basket of 43 shares from around the world, with its top holdings including Crowdstrike Holdings Inc (NASDAQ: CRWD), Broadcom Inc (NASDAQ: AVGO), Okta Inc (NASDAQ: OKTA) and Splunk Inc (NASDAQ: SPLK). HACK has been around a little longer than ATEC or FANG and has returned an average of 22.6% per annum over the past 3 years. Not a bad return!
These 3 stocks could be the next big movers in 2020
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. 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 Alphabet (A shares), Facebook, and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Amazon, Apple, Facebook, Microsoft, Netflix, NVIDIA, Tesla, and Twitter. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd and Xero and recommends the following options: long January 2022 $1920 calls on Amazon, long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, and short January 2022 $1940 calls on Amazon. The Motley Fool Australia owns shares of AFTERPAY T FPO, Appen Ltd, and BETA CYBER ETF UNITS. The Motley Fool Australia has recommended Alphabet (A shares), Amazon, Apple, Facebook, Netflix, NVIDIA, and Temple & Webster Group Ltd. 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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