If you’re looking for an easy way to invest in international shares for diversification, then exchange traded funds (ETFs) could be the answer.
But which ETFs should you look at? Here are two popular ETFs that have generated strong returns for investors:
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
This ETF gives investors with exposure to 50 of the largest technology and ecommerce companies that have their main area of business in Asia (excluding Japan).
This means you’ll be buying a piece of tech giants such as Alibaba, Baidu, JD.com, Samsung, and Tencent Holdings, as well as lesser known but equally impressive tech companies such as Meituan Dianping and Pinduoduo.
Meituan Dianping is China’s third-largest e-commerce company. Its apps connect consumers with local businesses for food deliveries, hotel bookings, movie tickets, and many other services. Meituan recently raised US$10 billion from investors in order to advance research on developing autonomous delivery vehicles. This includes drone and self-driving car deliveries.
Whereas Pinduoduo is an e-commerce platform that offers a wide range of products from daily groceries to home appliances. The Pinduoduo platform connects distributors with consumers directly through an interactive shopping experience, allowing shoppers to team up to buy items at lower prices. In March, the company revealed that it had 788 million annual active customers, overtaking Alibaba.
The BetaShares Asia Technology Tigers ETF has generated a return of 60.85% over the last 12 months.
Betashares Nasdaq 100 ETF (ASX: NDQ)
Another ETF to consider is the Betashares Nasdaq 100 ETF. This fund aims to track the performance of the NASDAQ-100 Index.
The NASDAQ-100 comprises 100 of the largest non-financial companies listed on the world-famous NASDAQ market. BetaShares notes that this includes many companies that are at the forefront of the new economy.
Among its top holdings are Google parent Alphabet, Amazon, Apple, Facebook, Intel, Microsoft, Netflix, Nvidia, PayPal, and Tesla.
Over the last 12 months, the Betashares Nasdaq 100 ETF has generated a return of 30.8%.