3 excellent ASX ETFs to buy in February

Let's see what funds could be top picks for investors this month.

| More on:

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

There are a lot of exchange-traded funds (ETFs) to choose from on the Australian share market.

But which ones could be good options for investors in February? Let's take a look at three quality options for the month ahead:

ETF written in white with a blackish background.

Image source: Getty Images

BetaShares Global Cybersecurity ETF (ASX: HACK)

If you are interested in technology exposure outside the status quo, then you might want to look at the BetaShares Global Cybersecurity ETF.

As you might have guessed from its name, this ASX ETF provides investors with access to the growing cybersecurity sector. This means you'll be owning companies such as Broadcom Inc (NASDAQ: AVGO), Cisco (NASDAQ: CSCO), Cloudflare (NYSE: NET), Fortinet (NASDAQ: FTNT), Palo Alto Networks (NASDAQ: PANW), Crowdstrike (NASDAQ: CRWD), and Thales SA (FRA: CSF).

As we have seen in recent years, cyberattacks are on the rise and cybersecurity is becoming increasingly important and a failure to protect data can lead to significant brand damage and financial loss. This bodes well for the cybersecurity sector over the next decade and beyond.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

Another ASX ETF that could be a top option in February is the BetaShares S&P/ASX Australian Technology ETF.

This ETF allows investors to buy a slice of the best tech stocks on the Australian share market.

Among its holdings are payments giant Block Inc (ASX: XYZ), health imaging technology company Pro Medicus Limited (ASX: PME), logistics solutions leader WiseTech Global Ltd (ASX: WTC), and cloud accounting platform provider Xero Ltd (ASX: XRO).

Betashares recently tipped this fund as one to buy. It points out that "with the nascent adoption of AI, cloud computing, big data, automation, and the internet of things, there's a good chance that the next decade's major winners will come from the tech sector."

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A third ASX ETF for investors to look at in February is the VanEck Vectors Morningstar Wide Moat ETF.

This Warren Buffett-inspired ETF gives investors access to a group of companies with sustainable competitive advantages or wide moats. The fund is currently invested across almost 50 attractively priced shares boasting these qualities.

This includes the likes of Alphabet (NASDAQ: GOOG), Altria (NYSE: MO), Boeing (NYSE: BA), Estee Lauder (NYSE: EL), Nike (NYSE: NKE), and Walt Disney (NYSE: DIS). Given how successful Buffett's style of investing has been over multiple decades, this ETF could be a top option for long term focused investors.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor James Mickleboro has positions in Nike, Pro Medicus, Walt Disney, WiseTech Global, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, BetaShares Global Cybersecurity ETF, Block, Cisco Systems, Cloudflare, CrowdStrike, Fortinet, Nike, Walt Disney, WiseTech Global, and Xero. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Broadcom, Palo Alto Networks, and Pro Medicus. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF, WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet, CrowdStrike, Nike, Pro Medicus, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Exchange-Traded Funds (ETFs)

A laughing man standing next to a woman holds out his arm to a payments machine to pay with his smartwatch
Exchange-Traded Funds (ETFs)

3 strong ASX ETFs for smart investors to buy and hold

Looking to invest for the long-term? Here are three funds worth a closer look.

Read more »

ETF written in white on a multi coloured background.
Dividend Investing

Why I'd buy these 2 ASX ETFs for $10,000 a year in passive income

These two ASX ETFs provide a diversified means to earning a $10,000 yearly passive income.

Read more »

a man holds his hand to his chin with a furrowed brow, making an expression of puzzlement or confusion.
Exchange-Traded Funds (ETFs)

Too many ASX ETFs? You could be paying twice for the same shares

ETF overlap can mean higher fees and a false diversification illusion.

Read more »

A man with his back to the camera holds his hands to his head as he looks to a jagged red line trending sharply downward.
Exchange-Traded Funds (ETFs)

Down 21% in six weeks, what's happened to SEMI ETF?

SEMI invests in high-tech businesses, including semiconductor developers and manufacturers.

Read more »

Happy voter holding the US flag and a badge.
Exchange-Traded Funds (ETFs)

Why this NASDAQ-focused ASX ETF keeps outperforming

This fund provides simple high growth US diversification.

Read more »

ETF written in light blue on a chart.
Exchange-Traded Funds (ETFs)

3 strong Vanguard ETFs to buy with $3,000

One offers broad global exposure, another focuses on the US, and the third gives investors a way into Asia.

Read more »

two computer geeks sit across from each other with their laptop computers touching as they look confused and confounded by what they are seeing on their screens.
Exchange-Traded Funds (ETFs)

Australia finally has a quantum computing ETF. Should you invest?

A brand new theme, and a not-so-new set of risks.

Read more »

A heart next to a pink piggy bank and coins.
Exchange-Traded Funds (ETFs)

Why I would buy this safe ASX ETF with a 4% yield

There aren't many ETFs that offer a safe 4% yield and monthly payouts.

Read more »