I love buying ASX exchange-traded funds (ETFs). But most of the ETFs that I've purchased for my ASX share portfolio have been of the simple, index fund variety. I rarely buy funds that cover a specific theme or sector. However, I am thinking about changing that up in 2026.
Some themes and sectors within the market are obviously cyclical. Commodities (and commodity ETFs) are a clear example. But others might be at the start, or perhaps middle, if we're being honest, of a multi-year tailwind, with no visible impediments on the horizon. It's these ASX ETFs that I would be most open to adding to my portfolio this year.
With that in mind, let's discuss two ASX ETFs that I think fall into this bucket and are, therefore, looking like a buy at the start of 2026.
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Two exotic ASX ETFs that I think are a buy for 2026 and beyond
First up, we have the BetaShares Global Cybersecurity ETF (ASX: HACK). This ETF does pretty much what it says on the tin – give ASX investors access to a global portfolio of companies who are all leaders in the cybersecurity space.
Every year, governments, businesses and individuals move more and more of their interactions to the internet. Whilst this might bring many benefits, it also brings vulnerabilities, which can be disastrous for everyone involved if they are exploited. As such, governments, businesses and individuals are increasingly willing to pay top dollar to protect themselves and their clients. That is a boon for every company within this ASX ETF.
We can see this in action with how HACK units have fared in recent years. As of 31 January, this ASX ETF has returned an average of 15.86% per annum since its inception in 2016.
Some of HACK's top holdings include Cisco Systems, Palo Alto Networks, Broadcom and Cloudflare. This ETF charges a management fee of 0.67% per annum.
Investing in defence
Next, let's discuss the Global X Defence Tech ETF (ASX: DTEC). It is an unfortunate reality that the global geopolitical environment has deteriorated in recent years. Many countries are decoupling from long-held alliances to individually manage threats in their region. Whilst this arguably makes the world a more dangerous and less predictable place, we must invest where the world is going, not where we wish it might go.
That's why I think this ASX ETF is a compelling investment for our current time. DTEC invests in a portfolio of global companies that are all leaders in providing defence technology, weaponry and other goods and services of that nature. Although it only began ASX life in September of last year, DTEC units have already returned more than 67% since (as of 31 January).
Some of this ETF's largest underlying positions include Lockheed Martin, RTX Corp, Rheinmetall and Palantir Technologies. The Global X Defence Tech ETF asks a management fee of 0.5% per annum.
