2 exciting ASX ETFs I'd buy in a heartbeat

These funds offer diversification and growth potential.

| More on:
Two women in a 4WD vehicle with Carbon Revolution wheels drive along laughing with one throwing her arms in the air

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I think all Aussies can benefit from owning ASX-listed exchange-traded funds (ETFs) which provide exposure to great international companies.

The Australian Securities Exchange (ASX) only accounts for around 2% of the global share market. I believe it would be a mistake to miss out on all those compelling businesses in the other 98%.

There are not many companies on the ASX that give Australian investors access to the technology sector.

However, I think most investors, including me, would improve their portfolio returns by buying the following two ASX ETFs.

Betashares Global Cybersecurity ETF (ASX: HACK)

Cybersecurity is one of the most important services these days because it is essential for governments to keep their citizens' data safe and for businesses to protect customer and employee data.

Governments and businesses must do their best to protect against fraud, intellectual property theft, and various other cybersecurity threats.

The HACK ETF gives investors exposure to a fast-growing industry. According to BetaShares and its sources:

Based on recent data from the Australian Cyber Security Centre (ACSC), cybercrime reports increased by nearly 23% in Australia during FY23, with one report made approximately every six minutes.

These crimes have a real cost, to individuals, corporates, governments, and the economy. The ACSC also reported that medium-sized businesses in Australia lost an average of $97,200 per reported incident in FY23. Looking at a wider scale, global cybercrime is projected to cost US$10.5 trillion per annum by 2025.

As more companies and individuals sign up for cybersecurity, the more revenue and net profit the businesses within the HACK ETF can make.

Past performance is not a guarantee of future performance, but over the past five years, the ASX ETF has delivered an average return per annum of 16.3%.

Betashares Nasdaq 100 ETF (ASX: NDQ)

I think it's a good idea to own some of the best businesses in the world in your portfolio. When looking at the NDQ ETF portfolio, I see a fund full of global leaders.

Technology is becoming an ever-increasing part of each business and industry. Plenty of the businesses in this portfolio are leading the world to change how they work, communicate, serve customers, shop online, how healthcare is provided and so on.

The NDQ portfolio includes top companies Apple, Microsoft, Nvidia, Broadcom, Amazon.com, Meta Platforms, Alphabet, Costco, Netflix, Advanced Micro Devices, Adobe, Cisco Systems, Intuitive Surgical and Applied Materials.

Collectively, these businesses have very strong market positions, global brand power, impressive returns on equity (ROE) and plenty of opportunities to invest for more growth.

The ASX ETF has performed very well thanks to the strength of these companies. Strong investment returns aren't always guaranteed, particularly if valuations get ahead of themselves. But, I think this group of businesses can keep expanding for a long time to come.

Over the five years to August 2024, the NDQ ETF has returned an average return per year of 20.6%.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Advanced Micro Devices, Alphabet, Amazon, Apple, Applied Materials, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Cisco Systems, Costco Wholesale, Intuitive Surgical, Meta Platforms, Microsoft, Netflix, and Nvidia. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Broadcom and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Adobe, Advanced Micro Devices, Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Netflix, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ETFs

Man smiling at a laptop because of a rising share price.
ETFs

Considering the Betashares Nasdaq 100 ETF (NDQ)? Here's what you're buying

The NDQ ETF has delivered strong results with an impressive portfolio.

Read more »

Person handing out $50 notes, symbolising ex-dividend date.
ETFs

3 ASX ETFs to buy for income in October

Looking for an income boost? Check out these ETFs this month.

Read more »

Cubes placed on a Notebook with the letters "ETF" which stands for "Exchange traded funds".
ETFs

Guess which ASX ETF has rocketed 31% in 2 weeks?

How did this ETF rise so much in so little time?

Read more »

ETF written in white on a grass background.
ETFs

Overinvested in the BetaShares Australia 200 ETF (A200)? Try these 2 ASX ETFs

There’s a big world of ETFs to choose from.

Read more »

Woman sitting at a desk shrugs.
ETFs

The pros and cons of buying the Vanguard Australian Shares Index ETF (VAS) in October

What are the positives and negatives of the Australian share market right now?

Read more »

Magnifying glass on ETF text next to a calculator and notepad.
ETFs

3 fantastic ASX ETFs to buy in October

Looking for ETFs to buy? Then look no further than these three next month.

Read more »

A businesswoman on the phone is shocked as she looks at her watch, she's running out of time.
Dividend Investing

Hoping to pocket the Vanguard Australian Shares Index ETF dividend? You'd better hurry

ASX VAS investors are set to receive 103.3194 cents per unit on 16 October.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
ETFs

4 of the best ASX ETFs to buy in October

Here's why these funds could be high-quality options for Aussie investors next month.

Read more »