Exchange traded funds (ETFs) have been growing in popularity with investors over the last few years and this trend has only accelerated in 2020.
As we revealed here earlier this month, following two record-breaking months of fund inflows in a row, the Australian ETF industry is now worth an estimated $73.8 billion.
While there are an increasing number of ETFs for investors to choose from, two which are among the most popular 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 number of the biggest tech companies in the Asia region. BetaShares notes that these are companies which are revolutionising the lives of billions of people in the Asia market. It believes they are well-positioned to benefit from the region’s younger, tech-savvy population, which is surpassing the West in terms of technological adoption. Among its holdings you will find the likes of Alibaba, Baidu, JD.com, and Tencent.
In respect to Tencent, it is the company behind the hugely popular WeChat app. It is China’s most dominant instant-messaging service and currently has over 1.2 billion active users globally. The app also has a virtual duopoly with Alibaba’s Ant Group in the mobile payments industry in the country. In addition to this, it has a huge online and mobile games business and has just launched into new areas such as advertising, content, and commercial services.
BetaShares NASDAQ 100 ETF (ASX: NDQ)
Another ETF that is popular with investors is the BetaShares NASDAQ 100 ETF. This fund aims to track the performance of the NASDAQ 100, which comprises 100 of the largest non-financial companies listed on Wall Street’s famous exchange. This means that through a single investment, investors will be getting a slice of tech giants such as Google parent, Alphabet, Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla.
As we revealed here earlier today, Tesla is the most searched company by Australian investors right now. And it isn’t hard to see why with electric vehicle demand expected to explode in the future. In addition to this, one leading fund manager notes that Tesla is more than just a car company. Hyperion Asset Management believes the company has the potential to generate incredible revenues from frequency regulation in the future. It feels Tesla could dominate the virtual power plant and energy storage market while millions of its cars sit in consumer garages and provide power to the grid.
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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 and recommends Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended BETANASDAQ 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.