Exchange traded funds (ETFs) can be great additions to a balanced portfolio. This is because they give investors easy access to a large and diverse group of different shares.
Due to their growing popularity, there are an increasing number of ETFs for investors to choose from.
To narrow things down, I have picked out two ETFs that are popular with investors right now. They are as follows:
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
The BetaShares Asia Technology Tigers ETF tracks the performance of the ~50 largest technology and ecommerce companies that have their main area of business in Asia.
As these companies, or tigers, are among the fastest growing in the region and revolutionising the lives of billions of people, they have been tipped to generate strong returns for investors over the long term.
Among its holdings are the likes of Alibaba, Baidu, Samsung, and Tencent Holdings.
In respect to Tencent, it is a multinational technology conglomerate and one of the largest companies in the world. It is best known for its communication and social platforms, Weixin (WeChat) and QQ, which have over a billion users.
As for Baidu, it is a search engine giant and China’s answer to Google. It is dominating search in the lucrative market, with an estimated 80% share of the market.
BetaShares Global Cybersecurity ETF (ASX: HACK)
Another ETF to look at is the BetaShares Global Cybersecurity ETF. This ETF aims to track the performance of an index that provides investors with exposure to the leaders in the global cybersecurity sector.
BetaShares notes that the cybersecurity sector is heavily under-represented on the ASX. As such, this ETF ensures that Australian investors don’t miss out on this rapidly growing side of the tech industry.
Among the ETF’s holdings are cybersecurity giants and emerging players. This includes Accenture, Cisco, Cloudflare, Crowdstrike, Fortinet, Okta, and Palo Alto Networks.
In respect to the latter, Palo Alto Networks, it is the global leader in cybersecurity solutions. It offers 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.