There are a lot of exchange traded funds (ETFs) for investors to choose from.
To narrow things down, let's take a look at two that the team at Betashares has recently recommended. They are as follows:
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Betashares Video Games And Esports ETF (ASX: GAME)
The first ASX ETF that the fund manager is recommending is the Betashares Video Games And Esports ETF.
As you might have guessed from its name, this fund gives investors easy access to the video game and esports industries.
It highlights that gaming has gone from a niche hobby to a massive industry, which provides investors with significant investment opportunities over the long term. It said:
Once a niche hobby, gaming has grown into a near-US$300 billion industry – bringing with it a wave of long-term investment opportunities. Companies like Nintendo, Sega and Take Two have been joined by newer players like Roblox, Tencent and Applovin in a highly competitive sector that now boasts 2.7 billion players in every corner of the world. Add in the eSports events which attract millions of viewers, and you have an industry with a loyal customer base that has demonstrated its ability to spend regardless of the economic environment.
Betashares Global Cybersecurity ETF (ASX: HACK)
Another ASX ETF that Betashares thinks investors should be considering for the long term is the Betashares Global Cybersecurity ETF.
This fund offers investors easy and targeted exposure to a portfolio of leading global cybersecurity shares. It notes that these companies are at the forefront of protecting critical infrastructure, sensitive data, and digital systems from ever-evolving threats.
Betashares highlights that the cybersecurity is an industry that is set to grow materially in the future as cybercrime increases. It explains:
Globally, cybercrime is projected to cost global companies more than US$12 trillion by 2031. Many major companies have been affected in the past by compromised systems, including Equifax (2017), Yahoo (multiple large-scale data breaches from 2013-16) and Sony (2011).
Here at home, more than 25 million Australian customer accounts have been compromised as a result of cyber attacks on Qantas, Optus and Medibank. These attacks weren't the first and they won't be the last – and companies need to be ready for what's next. For many firms, this involves employing the services and products of cybersecurity vendors like Palo Alto Networks and Fortinet.
This all bodes well for the Betashares Global Cybersecurity ETF's holdings, which are positioned perfectly to profit from increasing demand.
