If you're in the market for some new exchange traded funds (ETFs), then it could be worth considering the two listed below.
Both are filled to the brim with high quality companies and are trading well below their highest levels of the year. Here's what you need to know:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
It has not been a good year for the BetaShares NASDAQ 100 ETF. This hugely popular ETF has dropped 29% from its 52-week high.
This has been driven by a de-rating of tech valuations and, more recently, the poor performance of a number of tech behemoths such as Amazon and Meta (Facebook). The latter has lost almost three-quarters of its value in 2022 as TikTok steals screen time and Apple's privacy changes make targeted advertising harder.
While this is very disappointing, it could prove to be an incredible 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 exchange. This means investors will be buying a slice of many of the world's greatest companies such as Amazon, Apple, Alphabet, , Microsoft, Nvidia, and Tesla.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
The VanEck Vectors Morningstar Wide Moat ETF could be an ETF to consider next week.
Its units have fared a lot better than the Nasdaq 100 ETF and are down approximately 10% from their 52-week high.
This could make it an opportune time to make an investment, particularly given its strong track record of generating stellar returns. Even after accounting for 2022's difficulties, the index the fund tracks has generated an average return of 19.14% per annum over the last 10 years.
This has been driven by its focus on fairly priced US companies with sustainable competitive advantages or moats.
The fund regularly changes its constituents and removes stocks when they become overvalued. But generally, there will be approximately 50 shares in the fund at any given time. At present, this includes Alphabet, Amazon, Boeing, Microsoft, Salesforce, and Walt Disney.
