There are many exchange-traded funds (ETFs) on the ASX. Dozens and dozens, in fact. And many of them I would consider to be smart investments in June 2024. So picking the smartest ASX ETF to buy with $1,000 right now isn't the easiest choice.
In my view, you can never go wrong with a simple index fund like the Vanguard Australian Shares Index ETF (ASX: VAS) or the iShares S&P 500 ETF (ASX: IVV).
I've also written extensively about my love of the VanEck Vectors Wide Moat ETF (ASX: MOAT), and I would happily recommend that fund to any investor who wants to aim for market-beating returns from here.
But after much thought, I would consider the BetaShares Global Cybersecurity ETF (ASX: HACK) the smartest ASX ETF to put $1,000 into right now.
Why? Well, there are two reasons.
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Why is HACK the best ASX ETF to put $1,000 in today?
The first is this ETF's nature.
As its name (and ticker code) suggests, this ETF invests in a portfolio of global companies that are all movers and shakers in the cybersecurity industry. Some of the fund's top holdings include CrowdStrike Holdings, Broadcom, Palo Alto Networks and Zscaler.
This is arguably one of the most important industries in the world right now. In our modern world, every individual, business and government holds sensitive data that they need to protect from prying eyes.
When these data stores are breached, it can have catastrophic impacts on our personal lives and finances, for one. But when we are talking about a business or a government, the potential impacts can be catastrophic. Just ask Optus or Medibank Private Ltd (ASX: MPL).
Global cybersecurity threats will only increase as the world becomes ever more connected. As such, it is reasonable to assume that individuals, businesses, and governments will increasingly be prepared to spend top dollar to prevent these embarrassing and potentially disastrous data breaches.
If realised, this trend stands to benefit every single company in the ASX's Betashares Global Cybersecurity ETF.
The numbers don't lie
Secondly, there's past performance to consider with this ASX ETF. We should never base a potential investment decision on its past performance, or assume that performance will simply continue into the future.
However, I believe that, in this case, the HACK ETF's track record vindicates the growth trajectory of the cybersecurity sector that we just discussed.
As of 31 May, the Betashares Global Cybersecurity ETF has returned 18.23% over the past 12 months. That becomes an average of 12.13% per annum over the past three years, and stretches to 16.09% per annum over the past five.
Since this ASX ETF's inception in August 2016, investors have bagged an average of 16.49% per annum.
Putting all of these factors together, I think that this ASX ETF is the smartest place to put $1,000 into this June and beyond.
