Exchange traded funds (ETFs) are becoming increasingly popular with Australian investors and it isn’t hard to see why.
ETFs give investors the opportunity to invest in a large number of shares through just a single investment. This includes themes, countries, or whole indices.
Two ETFs that are popular with investors right now are listed below. Here’s what you need to know about them:
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
The BetaShares Asia Technology Tigers ETF gives investors exposure to a collection of tech shares that are revolutionising the lives of billions of people in the Asia market. Among its holdings you will find the likes of Samsung, Alibaba, JD.com, Tencent, and Baidu.
In respect to Baidu, it is widely regarded as the Chinese version of Google. As well as being the dominant search engine in China, Baidu has a keen focus on artificial intelligence and is aiming to be an autonomous vehicle powerhouse. In 2019, the company ranked number one in the amount of AI-related patent applications in China for the second consecutive year. This demonstrates just how active in the space it is.
Another key holding in the fund is Tencent. It is one of the world’s largest tech companies with a focus on video games and social media. It is best known as the company behind the WeChat app, which is used by over 1.2 billion people for messaging, e-commerce, digital payments, and entertainment.
BetaShares Global Cybersecurity ETF (ASX: HACK)
Another ETF that is popular with investors is the BetaShares Global Cybersecurity ETF. This ETF aims to track the performance of an index that provides exposure to the leading companies in the global cybersecurity sector.
BetaShares notes that with cybercrime on the rise, demand for cybersecurity services is expected to grow strongly for the foreseeable future. This is a side of the market which is heavily under-represented on the ASX at present.
Included in the fund are both global cybersecurity giants and emerging players from a range of global locations. Among its holdings you’ll find Crowdstrike, Okta, Accenture, Cisco, and Cloudflare.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. 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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