Exchange traded funds (ETFs) can be a great way for investors to diversify a portfolio. This is because they give investors access to a large group of shares through just a single investment.
But which ETFs should you look at? Here are two popular ETFs that could be worth getting better acquainted with:
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
The first ETF to look at is the BetaShares Asia Technology Tigers ETF. It gives investors exposure to 50 of the most promising tech companies in the Asian market (excluding Japan). Among the fund’s top holdings you will find the likes of Alibaba, Baidu, Infosys, JD.com, Kuaishou Technology, Meituan Dianping, Pinduoduo, Samsung, Tencent.
Pinduoduo is an ecommerce platform that offers a wide range of products. This includes everything from daily groceries to home appliances. However, it does things differently to other platforms. Pinduoduo connects distributors with consumers directly through an interactive shopping experience. After which, it allows them to team up to buy items in bulk at lower prices. In March, the company overtook ecommerce behemoth Alibaba with the most active customers – a massive 788 million.
Another company in the fund is Kuaishou Technology. It is the company behind the eponymous Kuaishou app. This is the world’s second largest short video platform with an average of 275.9 million daily active users. It generates revenue from live-streaming, ads, and ecommerce.
BetaShares Global Cybersecurity ETF (ASX: HACK)
Another ASX ETF to look at is the BetaShares Global Cybersecurity ETF. This popular ETF gives investors exposure to the leading companies in the global cybersecurity sector.
Included in the fund are both global cybersecurity giants and emerging players from a range of global locations that look well-positioned to benefit from the increasing demand for cybersecurity services. Among the companies you’ll be buying a piece of are Accenture, Cisco, Cloudflare, Crowdstrike, Okta, and Splunk.
CrowdStrike is a provider of incident response and forensic analysis services via its Falcon platform. Its services are designed to help businesses understand whether a breach has occurred. It then allows the user to respond and recover from a breach with speed and precision to remediate the threat.
Whereas Okta provides businesses with workforce identity solutions. This ensures that access to information is given only to those that are meant to have it. It has been experiencing very strong demand and expects this to continue. Management is guiding to US$4 billion in annual revenue by FY 2026, which implies compound annual growth of at least 35% over the next five years.