May has turned out to be a fairly lacklustre month for ASX shares and the share market so far. Since the start of the month, the ASX 200 has shed around 0.6%. But that means it's a better time to buy shares now, as opposed to the start of the month. So let's talk about two ASX exchange-traded funds (ETFs) that could be worth buying right now.
These ETFs aren't your plain-Jane index funds either and could bring an exotic touch to an ASX portfolio.
2 exotic ETFs worth a buy this May
BetaShares Global Cybersecurity ETF (ASX: HACK)
It's almost tempting to recommend this sector-specific ETF just on its innovative ticker code alone. But let's resist this temptation and take a look under the hood here. So this ETF holds a basket of companies from around the world that all offer products and services in the cybersecurity space.
Cybersecurity is arguably one of the best-placed industries for growth over the coming decades. The size and scope of internet use is only getting larger across all corners of society, and as it does, using the internet safely and securely will increase in importance.
That's why this ETF is one of the funds worth checking out this May. It holds companies like Fortinet, Palo Alto Networks, Cisco Systems and Okta in its portfolio, which are all global leaders in cybersecurity solutions. This ETF has returned an average of 12.47% per annum over the past five years, and 14.32% per annum since inception in 2016. There are no guarantees in investing, but I am confident this sector's best days are far ahead of 2023.
VanEck Morningstar Wide Moat ETF (ASX: MOAT)
This ETF from VenEck is a little different. It invests in a portfolio of select American shares that are chosen for their possession of a 'wide moat'. A 'moat' is a term coined by the legendary Warren Buffett, and refers to a company's intrinsic protections that it possesses against its competition. This could come in the form of a strong brand (think Apple or Coca-Cola), or else its ability to offer lower prices than its competitors (perhaps a Coles Group Ltd (ASX: COL) or Amazon).
Companies that this ETF selects all have something along these lines, according to the provider. So it's no surprise to see Amazon and Buffett's own Berkshire Hathaway within this ETF's current portfolio, alongside other names like Adobe, Pfizer, Boeing and Domino's Pizza.
Over the past five years, this ETF has returned an average of 16.61% per annum, and 15.41% per annum since inception in 2015.
