As my colleague covered here, exchange-traded funds (ETFs) continue to grow in popularity with Australian investors.
So much so, the Australian ETF industry was worth a record $78.7 billion at the end of the November.
Where are investors putting their money? Two popular ETFs 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 access to a total of 50 of the largest technology and ecommerce companies operating in the Asian market. This means investors will be buying a slice of tech giants such as Alibaba, Baidu, JD.com, and Tencent Holdings.
In respect to Alibaba, it is the Amazon of China and at the end of September had 757 million annual active customers. Across its Alibaba, Taobao, and Tmall brands, the company is estimated to control a sizeable 56% of China's e-commerce market. It also has a presence offline with a growing network of grocery stores, hypermarkets, and department stores.
But like Amazon, it is so much more than just a retailer. It accounts for 40.1% of China's cloud infrastructure market and has an exceptionally strong financial business.
BetaShares NASDAQ 100 ETF (ASX: NDQ)
The BetaShares NASDAQ 100 ETF is another exchange traded fund that is popular with investors. This ETF 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.
Among the 100 companies you will find some of the biggest and most recognisable companies in the world. This includes Apple, Facebook, Netflix, Nvidia, and Starbucks.
BetaShares believes the fund is a good option for Australian investors due to its strong focus on the technology sector. It points out that this is a high-growth potential sector that is under-represented on the Australian share market.
