Just like the rest of the share market, a number popular exchange traded funds (ETFs) have come under fire in 2022.
While this is disappointing, it could have created a buying opportunity for long-term focused investors. For example, the two highly rated ETFs listed below are all trading notably lower year to date despite having very bright long-term outlooks.
Here's why they could be worth a closer look after being beaten down in 2022:
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BetaShares Global Cybersecurity ETF (ASX: HACK)
The BetaShares Global Cybersecurity ETF has fallen a disappointing 23% since the start of the year.
This is broadly in line with the rest of the tech sector, which has come under pressure as rates rise and valuations get crunched.
The BetaShares Global Cybersecurity ETF is home to a range of technology shares with a focus on the global cybersecurity sector. This is an area that is heavily under-represented on the ASX, with only a few low quality companies offering exposure to the sector.
Whereas this ETF is home to cybersecurity giants such as Accenture, Cisco, Cloudflare, Crowdstrike, Fortinet, Okta, and Palo Alto Networks. These companies look well-placed to benefit from increasing demand for cybersecurity services as more infrastructure shifts to the cloud and cyber and ransomware attacks increase.
BetaShares NASDAQ 100 ETF (ASX: NDQ)
Another beaten down ETF to consider is the BetaShares NASDAQ 100 ETF. Since the start of the year, this popular ETF has lost over 26% of its value.
As disappointing as this is, it could prove to be a buying opportunity for investors with a long-term focus. Particularly given the quality that is on offer with the ETF.
The BetaShares NASDAQ 100 ETF is home to the 100 largest (non-financial) businesses on Wall Street's technology focused NASDAQ index. This means investors will be buying a slice of many of the world's greatest companies. These include Amazon, Apple, Alphabet, Facebook/Meta, Microsoft, Netflix, and Nvidia.
