Exchange traded funds (ETFs) continue to grow in popularity with Australian investors.
So much so, according to the AFR, Vanguard has reported its best year since entering the Australian market two decades ago.
The world’s second-largest asset manager pulled in a total of $5.7 billion into its exchange traded funds in 2020 after Australian investors sought diversified exposure during a volatile time for share markets because of COVID-19.
If you’re interested in joining these investors by adding an ETF or two to your portfolio, then you might want to take a closer look at the two listed below. Here’s what you need to know about them:
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
The first ETF to look at is the BetaShares Asia Technology Tigers ETF. As its name implies, it gives investors exposure to a number of the biggest and brightest tech shares in the Asia market. Among the fund’s holdings you will find the likes of Samsung, Alibaba, JD.com, Tencent, and Baidu.
In respect to the latter, Baidu is the dominant search engine in China and widely considered to be the country’s version of Google. But like its US peer, Baidu is so much more than just a search engine. It has a keen focus on artificial intelligence and is aiming to be an autonomous vehicle powerhouse.
Another company you’ll be owning a slice of 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)
The BetaShares Global Cybersecurity ETF is another ETF to look closely at. This ETF aims to track the performance of an index providing investors with exposure to the leading companies in the growing global cybersecurity sector.
BetaShares notes that with cybercrime on the rise, demand for cybersecurity services is expected to increase strongly in the future. And given how this side of the market is heavily under-represented on the ASX at present, this ETF give investors an easy way to invest in the theme.
Included in the fund are both global cybersecurity giants and emerging players from a range of global locations. Among its holdings you’ll find Accenture, Cisco, Cloudflare, Crowdstrike, and Okta.
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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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.