2 fantastic ETFs generating strong returns for ASX investors

Here are two high quality ETFs generating strong returns for investors…

| More on:
Block letters 'ETF' on yellow/orange background with pink piggy bank

Image source: Getty Images

If you’re wanting to add some diversification to your portfolio in 2022, then you might want to look at exchange traded funds (ETFs).

ETFs are a great way to achieve this because they give investors easy access to a large and diverse number of different shares through a single investment.

With that in mind, here are two highly rated ETFs that are generating strong returns for investors:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF to look at is the BetaShares Global Cybersecurity ETF. It aims to track the performance of an index providing investors with exposure to the leading companies in the growing global cybersecurity sector.

Cyber security companies look well-placed for growth in the coming years thanks to increasing demand for cybersecurity services due to a rise in cybercrime. And given how this side of the market is heavily under-represented on the ASX, this ETF give investors an easy way to invest in the sector.

Among the ETF’s holdings you’ll find the likes of Accenture, Cisco, Cloudflare, Crowdstrike, and Okta.

In respect to the latter, Okta provides large enterprises with workforce identity solutions. Its customer identity and access management (CIAM) solutions ensure an organisation’s remote workforce is who they claim to be and that they only have access to the business applications they need to perform their job.

The fund has generated a return of 23.4% per annum for investors over the last five years. This would have turned a $20,000 investment into ~$57,000.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF to look at is the VanEck Vectors Morningstar Wide Moat ETF. This fund gives investors access to around 50 US-based stocks which are judged to have sustainable competitive advantages.

Historically, companies with competitive advantages, or moats, have generated strong returns for investors. This is why investing in companies with this quality is a key investment tenet for Warren Buffett.

Among the ETF’s holdings are the likes of Amazon, Boeing, Coca-Cola, Meta, and Microsoft.

Over the last five years, the ETF has outperformed the ASX 200 index with an average total return of 19.8% per annum. This would have turned $20,000 into ~$49,350.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor James Mickleboro 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. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. 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 »