Because of the way exchange traded funds (ETFs) give investors easy access to a large and diverse range of shares, they can be a great way to balance out your portfolio.
They can also provide you with very strong returns, if you choose wisely.
Two ETFs that have done exactly that are listed below. Here’s what you need to know about them:
BetaShares Global Cybersecurity ETF (ASX: HACK)
The BetaShares Global Cybersecurity ETF aims to track the performance of an index that provides investors with access to the leaders in the growing global cybersecurity sector.
Over the last five years, the index it is tracking has generated a return of 21% per annum for investors. That would have turned a $10,000 investment into approximately $26,000 today.
Positively, with demand for these types of services increasing due to the growing threat of cyberattacks on governments and businesses, the future looks very bright for this ETF.
Among the 40 companies that you’ll be investing in with this ETF are the likes of Accenture, Cisco, Cloudflare, Crowdstrike, Okta.
BetaShares NASDAQ 100 ETF (ASX: NDQ)
Another ETF to consider from BetaShares is the BetaShares NASDAQ 100 ETF. This fund provides investors with exposure to 100 of the largest non-financial companies on the famous Nasdaq index.
As with the HACK ETF, this ETF has been a strong performer over the last five years. During this time, the ETF has generated a return of 23.7% per annum. This would have turned a $10,000 investment into almost $29,000 over the five years.
Once again, due to the quality of the companies in the ETF and their positive long term outlooks, this ETF has a strong chance of outperforming again over the next five years.
Among its holdings you will find tech behemoths Amazon, Apple, Facebook, Microsoft, Netflix, Nvidia, Tesla, and Google parent, Alphabet. It also includes non-tech stocks such as Costco and Starbucks.
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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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.