2 top ETFs that might be buys in September 2021

The two ETFs in this article could be solid long-term ideas.

| More on:
green etf represented by letters E,T and F sitting on green grass

Image source: Getty Images

Exchange-traded funds (ETFs) could be a good way to invest into shares.

There are lots of different investments to consider. Businesses in the technology space may have a particularly good outlook because of the higher margins and the typically stronger growth profile.

These two could be particularly good ones to think about:

Betashares Global Cybersecurity ETF (ASX: HACK)

This is a sector-based ETF. As the name may suggest, it gives investor exposure to the global cybersecurity space.

Betashares says that with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future. The size of the global cybersecurity market is expected to be US$248.26 billion, up from US$137.63 billion in 2017.

The portfolio includes global cybersecurity giants, as well as emerging players, from across the world. A vast majority of the portfolio, around 90.3%, is from the US. But the underlying earnings are effectively from around the world.

In terms of the actual holdings, there are a total of 39 positions. But the biggest 10 positions: Crowdstrike, Okta, Accenture, Cisco Systems, Cloudflare, Fortinet, Varonis Systems, Cyberark Software and Splunk.

Whilst systems software makes up just over half of the portfolio, the ETF is allocated to other segments like communications equipment, internet services and infrastructure, research and consulting, IT consulting and other services, and application software.

Past performance is not a reliable indicator of future performance, but the Betashares Global Cybersecurity ETF has performed strongly since inception in August 2016 with an average return per annum of 22.3%.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This ETF is an index based on the largest 100 non-financial businesses listed on the NASDAQ stock exchange.

As BetaShares says, it includes some of the most innovative companies that are revolutionising our lives and at the forefront of the new economy.

It has an annual management fee of 0.48% which gives fairly concentrated exposure into names like Apple, Microsoft, Amazon.com, Alphabet, Facebook, Tesla, Nvidia, PayPal and Adobe.

But there’s also more to the portfolio than just the largest global tech names. Other names in the portfolio include Cisco Systems, PepsiCo, Broadcom, Costco, Texas Instruments, Honeywell and Moderna.

Whilst it’s not necessarily meant to be very tech heavy, it is. Around half of the portfolio is IT, with another 19.7% in communication services and 16.7% in consumer discretionary. Alphabet, Facebook and Netflix count as communication services. Amazon, Tesla and MercadoLibre count as consumer discretionary.

Since inception, Betashares Nasdaq 100 ETF has seen an average return per annum of 23.1% including the fees.

Should you invest $1,000 in Betashares Global Cybersecurity ETF right now?

Before you consider Betashares Global Cybersecurity ETF, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Betashares Global Cybersecurity ETF wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ETFs

ETF written in yellow with a yellow underline and the full word spelt out in white underneath.

3 top ETFs for ASX investors to buy now

Here are three top ETFs to buy this week...

Read more »

Four ASX dividend shares investors stand in a line holding cash fanned in their hands with thoughtful looks on their faces wondering what the APA share price will do today and how big the APA dividend yield will be in 2022

Does the ETFS Battery Tech & Lithium ETF (ACDC) pay dividends?

We take a closer look at this exchange-traded fund...

Read more »

A rugby player with head strapped and ball tucked under one arm raises his other hand in a fend while making an aggressive, grimace face as if to fight off defenders.

Here are 2 ASX-listed ETFs that might be able to fend off inflation

Could these ETFs be a way to combat inflation in a portfolio?

Read more »

One boy is triumphant while the other holds his head in his hands after a game of chess.

VGS: Were you better off buying the S&P 500 ETF?

IVV and VGS are both popular international ETFs. But which one wins?

Read more »

ETF spelt out

Here are 2 fantastic ETFs for ASX investors to buy in May

These ETFs are highly rated for a reason...

Read more »

A rich buisnessman buys luxury items with Bitcoin

How is the Bitcoin ETF (EBTC) performing compared to the ASX on Friday?

All three crypto ETFs which launched yesterday are well into the green today.

Read more »

Man looking at an ETF diagram.

Here are 2 quality ETFs that are now a lot cheaper

These two ETFs have quality businesses, but their prices have fallen heavily.

Read more »

ETF written in white with a blackish background.

2 high quality ETFs for ASX investors to buy after the market meltdown

These popular ETFs could be worthy of your attention...

Read more »