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 could be worth getting better acquainted with:
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
The first ETF to look at is the BetsShares Asia Technology Tigers ETF. This popular ETF provides investors with exposure to 50 of the largest technology and ecommerce companies that have their main area of business in Asia.
Among the 50 companies you’ll be owning a slice of are tech giants such as Alibaba, Baidu, Infosys, JD.com, Samsung, and Tencent Holdings. It also includes lesser known but high quality tech companies. These include Kuaishou Technology, Meituan Dianping, and Pinduoduo.
In respect to 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. At present, it generates revenue from live-streaming, ads, and ecommerce.
Also in the fund is Pinduoduo. It is an e-commerce platform that offers a wide range of products from daily groceries to home appliances. The platform connects distributors with consumers directly through an interactive shopping experience. This means that shoppers can team up to buy items in bulk at lower prices. A recent update reveals that the company has stolen the crown from Alibaba in respect to active customers. It is now the largest retailer in the region with 788 million annual active customers.
BetaShares NASDAQ 100 ETF (ASX: NDQ)
Another ETF to look at is the BetaShares NASDAQ 100 ETF. It aims to track the performance of the NASDAQ 100 Index before fees and expenses. This index comprises 100 of the largest non-financial companies listed on the NASDAQ market, and includes many tech companies that are at the forefront of the new economy.
BetaShares notes that this area of the market is underrepresented on the Australian share market. As a result, it feels the ETF may benefit local investors that often have a large allocation to financials and mining companies and little exposure to technology.
Among the companies you’ll be buying a slice of are global giants such as Amazon, Apple, Facebook, Microsoft, Netflix, Nvidia, and Tesla.
Apple is of course the US$2.5 trillion technology behemoth behind the iPhone, iPad, MacBook, and Apple Watch. It also has a quick growing services business, which is generating significant recurring revenues. This business has over 600 million subscribers across its Apple Arcade, Apple Fitness+, Apple Music, Apple News, Apple Pay, and Apple TV+ offerings.
Another company you will be owning a slice of is Tesla. It appears well-placed for growth over the long term thanks to the ongoing adoption of electric vehicles and its energy storage business. In respect to the former, the company notes that public sentiment and support for electric vehicles are at a never-before-seen inflection point.