The new month is underway, and I think there are some exciting exchange-traded funds (ETFs) available to investors looking beyond the usual broad market options.
The three funds below take very different approaches to finding growth.
Here is why I rate each of them as a buy in August.
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VanEck Dynamic International Equity ETF (ASX: GOAT)
The GOAT ETF has recently undergone a major transformation.
The fund now uses an artificial intelligence-driven process to select around 150 companies from developed markets outside Australia. It analyses company fundamentals, market trends, technical signals, and wider economic conditions before ranking potential investments.
The portfolio is then reviewed monthly, allowing it to adjust as new opportunities emerge.
I find that approach fascinating because the fund is not permanently tied to a particular investing style or a fixed group of market giants.
Recent holdings have included Micron Technology, ASML, Caterpillar, Lockheed Martin, and Shell.
That gives the GOAT ETF a distinctive mix across technology, industrials, defence, energy, and financial services.
The new strategy has only just launched, so it does not yet have a long track record. I still think the ability to adapt across markets makes this an interesting international ETF.
Global X Artificial Intelligence ETF (ASX: GXAI)
The GXAI ETF invests in companies that could benefit from the development and adoption of artificial intelligence.
What I like is that it reaches much further than the most obvious AI software companies.
Its holdings include memory chip producers such as Micron Technology and SK Hynix, semiconductor designers such as Advanced Micro Devices, and major manufacturers including Samsung Electronics and Taiwan Semiconductor Manufacturing Co.
Apple, Broadcom, and NVIDIA also feature in the portfolio.
AI will require enormous amounts of computing power, memory, networking equipment, and data infrastructure. I think the GXAI ETF offers a good way to invest across that supply chain rather than trying to identify a single winner.
It is a focused thematic fund, so I would expect plenty of volatility. For investors who believe AI spending has years of growth ahead, I think it is worth considering.
Global X FANG+ ETF (ASX: FANG)
Lastly, the FANG ETF takes concentration in the opposite direction.
It holds only 10 major technology and technology-enabled companies, including Microsoft, Amazon, Meta Platforms, Alphabet, Netflix, and Palantir Technologies.
I like that directness. Investors know they are buying a focused collection of businesses leading areas such as cloud computing, digital advertising, artificial intelligence, streaming, semiconductors, and online retail.
The limited number of holdings means poor performance from one company can have a noticeable effect. Valuations can also fall sharply when investors become less enthusiastic about growth shares.
However, I think these companies have some of the strongest technology, data, customer relationships, and financial resources in the world.
For investors comfortable with concentration, I believe the FANG ETF offers an attractive way to back several global leaders through one ASX investment.
Foolish takeaway
The GOAT ETF offers an adaptive route into international shares, while the GXAI ETF provides broad exposure to the infrastructure and businesses supporting artificial intelligence. The FANG ETF makes a much more concentrated bet on a select group of global leaders.
With a long holding period and a willingness to accept volatility, I rate all three ASX ETFs as buys in August.
