AI, cybersecurity, and defence: 3 megatrend ASX ETFs to watch now

Want to invest in some of the most exciting megatrends? Check out these funds.

In a world where technology, security, and global power dynamics are shifting rapidly, some trends stand out as too big to ignore.

Artificial intelligence (AI), cybersecurity, and defence are three of the most powerful investment megatrends in play right now — and they're not going away any time soon.

The good news? You don't need to pick individual stocks to get exposure. A growing number of ASX exchange traded funds (ETFs) give you access to these global themes in a single trade.

Here are three megatrend ASX ETFs worth watching in May:

Hologram of a man next to a human robot, symbolising artificial intelligence.

Image source: Getty Images

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

AI is no longer science fiction, it is transforming how businesses operate, how governments function, and how we live our daily lives. From automation in logistics to generative AI in the workplace, the scale of disruption is enormous — and just getting started.

The Betashares Global Robotics and Artificial Intelligence ETF gives investors exposure to global companies driving the AI and robotics revolution. This includes names like NVIDIA (NASDAQ: NVDA), Intuitive Surgical (NASDAQ: ISRG), and Keyence.

As AI becomes a foundational technology across every sector, this ASX ETF offers a diversified and focused way to ride the wave.

Betashares Global Cybersecurity ETF (ASX: HACK)

With everything from banking to national defence now online, cybersecurity has become incredibly important. Data breaches, ransomware attacks, and digital warfare are no longer rare — they are the new normal and happening somewhere every minute.

The Betashares Global Cybersecurity ETF offers access to leading global cybersecurity companies like CrowdStrike (NASDAQ: CRWD) and Palo Alto Networks (NASDAQ: PANW). These businesses are mission-critical in today's economy, providing the digital shields protecting governments, enterprises, and individuals.

As the world becomes more connected — and more vulnerable — demand for cybersecurity solutions is only heading in one direction. Up.

VanEck Global Defence ETF (ASX: DFND)

Geopolitical tensions, increased military spending, and shifting global alliances have reignited the importance of defence and aerospace innovation. Europe, the US, and Australia are all ramping up defence budgets to modernise and secure infrastructure.

The VanEck Global Defence ETF is Australia's first dedicated defence ETF. It tracks the MarketVector Global Defence Industry Index, holding companies that generate more than 50% of their revenue from military and defence activities — across aerospace, software, consulting, and security. This includes Palantir Technologies Inc (NASDAQ: PLTR) and Thales.

Overall, this ASX ETF could be a great way to gain exposure to this megatrend.

Motley Fool contributor James Mickleboro 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 BetaShares Global Cybersecurity ETF, CrowdStrike, Intuitive Surgical, Nvidia, and Palantir Technologies. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Palo Alto Networks. The Motley Fool Australia has recommended CrowdStrike and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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