There are certain exchange-traded funds (ETFs) out there that can provide investors with plenty of exposure to long-term growth, with a tech weighting.
Some ETFs are based on a broad share market or index, such as the S&P/ASX 200 Index (ASX: XJO).
But there are other options that are based on a particular sector with growth characteristics.
Here are two ETF candidates that own businesses that have been growing for a long time:
Betashares Global Cybersecurity ETF (ASX: HACK)
This ETF gives investors a way to get access to the world's cybersecurity companies.
There is a mixture of global giants and emerging players in the portfolio.
Some readers may have heard of some of the ETF's biggest holdings, such as: Palo Alto Networks, Cisco Systems, Crowdstrike, Accenture, Mandiant, Check Point Software, Leidos, Thales, Juniper Networks, and Tenable.
BetaShares explains that with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future.
According to Statista, the size of the global cybersecurity market is expected to grow from $137.63 billion in 2017 to $248.26 billion in 2023. BetaShares also points out that Australian investors currently have few local options for gaining exposure to this fast-growing cybersecurity sector.
Past performance is not a reliable indicator of future performance. Over the past five years, the ETF has produced an average net return per year of 20.5% to 28 February 2022.
VanEck Video Gaming and Esports ETF (ASX: ESPO)
This ETF is about the global gaming and e-sports sector.
There is a total of 26 positions in the portfolio. These are the biggest ten, by weighting: Advanced Micro Devices, Tencent, Activision Blizzard, Nintendo, Nvidia, Netease, Nexon, Electronic Arts, Take-Two Interactive Software, and Bandai Namco.
VanEck points out that the global gaming sector has seen consistent global growth in revenue. Video gaming has seen 12% average annual growth since 2015.
E-sports has created new potential revenue streams from game publisher fees, media rights, merchandise, ticket sales, and advertising. E-sports revenue growth has increased by 28% on an average each year since 2015.
The companies in this portfolio are positioned to benefit from the increasing popularity of video games and e-sports. They make a significant portion of their revenue from the video gaming sector.
VanEck also notes that this investment can provide tech exposure away from Apple, Amazon, Facebook, Google, and Microsoft.
Again, past performance is not a reliable indicator of future performance. Over the last five years, the video gaming index that this ETF tracks has returned an average of almost 27% per annum to 28 February 2022.
