There are a few exchange-traded funds (ETFs) out there that provide specific and fairly unique diversification for investors.
Here are two to think about:
Betashares Global Cybersecurity ETF (ASX: HACK)
This ETF is provided by BetaShares. The idea is that it provides a simple and cost-effective way to gain exposure to the world’s leading cybersecurity companies in a single ASX trade.
The portfolio of the fund includes global cybersecurity giants, as well as emerging players, from a range of global locations.
Why could this ETF be an interesting one to consider? BetaShares says that with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future.
When you look at the returns after fees over the last few years, you’ll see that it has outperformed the ASX over the shorter-term and the longer-term. At the end of January it had returned 20.8% over the prior three months, 25.2% over the past year, an average of 25.1% per annum over the last three years and it had delivered an average of 20.9% per annum since inception in August 2016.
These returns are after the annual management fee of 0.67% per annum
In terms of the businesses that make up the portfolio, these are the biggest 10 exposures: Crowdstrike, Zscaler, Cisco Systems, Accenture, Splunk, Fireeye, Sailpoint Technologies, Palo Alto Networks, Fortinet and Proofpoint.
A vast majority of the holdings are listed in the US, with an 88.8% allocation. Another 3.5% is based in the UK, 3.4% is listed in Israel, a further 1.9% is listed in Japan, France is home to 1.8%, South Korea is responsible for 0.5% of the ETF and the final 0.1% is from ‘other’.
iShares Global Consumer Staples ETF (ASX: IXI)
This ETF is about providing investors exposure to around 1,200 businesses around the world that are classified as ‘consumer staples’.
Just over half of the ETF is invested in American-listed businesses, with the UK (13.1%), Switzerland (9.3%), Japan (7.2%) and France (5.2%) being the other countries with a weighting of more than 5%.
What businesses make up sizeable positions in the portfolio? These are the companies with a weighting of more than 2%: Nestle, Proctor & Gamble, Coca Cola, Walmart, Costco, Pepsico, Unilever, Philip Morris International, Diageo and L’Oreal.
This ETF has an annual management fee of 0.46% per annum.
The average return per annum over the last three years, five years and ten years has been 5.3%, 4.3% and 11.6% per annum, respectively.
According to Blackrock, this ETF has a 12-month trailing dividend yield of 2.3% and the price/earnings ratio is almost 24 times.