If you’d like to invest in the tech sector but aren’t sure which shares to buy, you could look at the two exchange traded funds (ETFs) instead.
These ETFs allow investors to buy and collection of tech shares through a single investment. Here’s what you need to know about them:
BetaShares Global Cybersecurity ETF (ASX: HACK)
The first tech ETF to look at is the BetaShares Global Cybersecurity ETF. This popular ETF gives investors exposure to the leading companies in the growing cybersecurity sector.
Included in the fund are global cybersecurity players Accenture, Cisco, Cloudflare, Crowdstrike, Okta, Palo Alto Networks, and Splunk. These companies appear well-placed for growth over the 2020s due to increasing demand for cybersecurity services.
One of the companies you’ll be owning a slice of is CrowdStrike. It is a provider of incident response and forensic analysis services via its Falcon platform. CrowdStrike’s 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 Palo Alto Networks is the global leader in cybersecurity solutions. Its offering includes advanced firewalls and cloud-based products that extend firewalls to cover other aspects of security. It has over 85,000 customers across over 150 countries. From these customers it generated US$4.3 billion of revenue in FY 2021, which was up 25% year on year.
VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)
Another tech ETF to consider is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors exposure to many of the largest companies involved in video game development, eSports, and gaming related hardware and software.
Among the companies you’ll be owning are game developers Activision Blizzard, Take-Two and Electronic Arts, and graphics processing unit (GPU) developer Nvidia. VanEck notes that the increasing popularity of video games and eSports means that these companies are well-placed to benefit.
One of the companies in the fund is Take-Two. It is the game developer behind the Grand Theft Auto and Red Dead franchises. While it may have been some time since Grand Theft Auto V was released, its online offering continues to generate significant revenues from micro-transactions. Furthermore, a new expanded and enhanced version is due to be released soon ahead of a much-anticipated (but unconfirmed) sequel which is expected in the next couple of years.
As for Nvidia, it is the world’s leading GPU developer and sits at the forefront of modern technologies. Its GPU deep learning ignited modern artificial intelligence and is used by cryptocurrency miners.