There are number of ASX shares that could be compelling ideas to consider for the long-term, starting from November 2021.
Share markets around the world have had a strong run over the last year. But some businesses may still be able to produce growth from here over time.
These two potential investments are benefiting from rising underlying demand:
Betashares Global Cybersecurity ETF (ASX: HACK)
This exchange-traded fund (ETF), as the name suggests, is about global cybersecurity businesses.
There are a number of different sectors within this portfolio related to fighting against cybercrime, including systems software, communications equipment, internet services and infrastructure, research and consulting services, IT consulting and other services, application software and so on.
This ETF is invested in a total of 36 positions. There are plenty of different names in the portfolio like Palo Alto Networks, Okta, Crowdstrike, Cloudflare, Tenable, Zscaler, Cyberark, Juniper Networks, Mimecast, Splunk, Fortinet, Verisign, and Rapid7.
There is not a lot of geographic concentration within this ASX share with more than 90% of the holdings being from the US. There are only three other countries that have a weighting of at least 2%: France (2%), Japan (2.5%) and Israel (3.7%).
Betashares Global Cybersecurity ETF has produced an average return per annum of 21.6% over the last five years. The cybersecurity industry is seeing ongoing growth of demand as more systems and information goes digital.
It has an annual management fee of 0.67%.
REA Group Limited (ASX: REA)
This business is building a diversified array of digital assets relating to real estate.
It operates the leading residentials and commercial property websites in Australia – realestate.com.au and realcommercial.com.au. REA Group also owns the market leader of share property, flatmates.com.au.
In recent years, the ASX share has been expanding into the mortgage broking sector with the Smartline Home Loans and Mortgage Choice businesses. It also owns PropTrack, a leading provider of property data services.
The business also has various global investments as well. It has a controlling stake of REA India, which was previously called Elara Technologies, which operates websites like Housing.com. Makaan.com and PropTiger.com.
REA Group also owns leading portals in Hong Kong with Squarefoot.com.hk and China (myfun.com). It also owns a sizeable part of Move Inc (operator of realtor.com in the US) and the PropertyGuru Group which has leading sites in Malaysia, Singapore, Thailand, Vietnam, and Indonesia.
The global operations provides REA Group with plenty of growth avenues.
FY21 was another year where the business demonstrated growth, combined with operating leverage. Revenue rose 13%, while net profit grew 18% to $318 million and earnings per share (EPS) also increased by 21% to $2.47. This funded a 19% increase of the full-year dividend to $1.31.
While listings were affected by lockdowns in the first few months, REA Group continues to have monthly visits to realestate.com.au site that are more than 3x its nearest rival and it's benefiting from price increases.
REA Group will release its first-quarter trading update later this week. The REA CEO Owen Wilson said a couple of months ago:
REA is entering the new financial year with strong momentum, despite ongoing lockdowns. This momentum, coupled with our strategic investments and exciting product roadmap, provides an excellent platform for our continued growth.
