There are some tech exchange-traded funds (ETFs) that are delivering rapid growth for investors, such as Betashares Nasdaq 100 ETF (ASX:NDQ).
The post 2 tech ETFs delivering rapid growth appeared first on The Motley Fool Australia. –
There are some tech exchange-traded funds (ETFs) that are delivering rapid growth.
Past performance doesn’t mean it will be repeated in the future, but they have been strong performers in recent years.
Here are two of those fast-growing ETFs:
Betashares Nasdaq 100 ETF (ASX: NDQ)
The tagline for this ETF, offered by Betashares, is: “Own the future in a single ASX trade. Gain exposure to many of the world’s most innovative companies that are revolutionising our everyday lives.”
This ETF is invested in 100 of the largest businesses on the NASDAQ, which includes many of the global companies (based in the US) which are at the forefront of the new economy, according to Betashares.
In terms of actual businesses that it holds in its portfolio, the biggest positions are: Apple, Microsoft, Amazon, Tesla, Facebook, Alphabet, Nvidia, PayPal and Netflix. But there’s more to the ETF than just the ‘FAANG’ shares.
Other shares within the Betashares Nasdaq 100 ETF include: Intel, Adobe, Broadcom, Qualcomm, Texas Instruments, Advanced Micro Devices, Applied Materials, Intuit, Intuitive Surgical, Mercado Libre, Booking Holdings, Activision Blizzards, JD.com, Baidu, Docusign and Zoom.
There are also quite a few non-tech shares in the portfolio including Costco, PepsiCo, Regeneron, Moderna, Starbucks and Monster Beverage.
The management fee of this ETF is not as high as many internationally-focused fund managers. Betashares Nasdaq 100 ETF has an annual management fee of 0.48% per annum.
Including those fees, Betashares Nasdaq 100 ETF has delivered a net return of 34.8% over the past year, 27.4% per annum over the past three years and 22% per annum over the last five years.
Betashares says that with its strong focus on technology, the ETF provides diversified exposure to a high-growth potential sector that is under-represented in the Australian share market.
Betashares Asia Technology Tigers ETF (ASX: ASIA)
This is another ETF provided by Betashares.
The idea behind Betashares Asia Technology Tigers ETF is to gain exposure to the 50 largest Asian technology companies outside of Japan in a single ASX trade.
Due to its younger, tech-savvy population, Asia is surpassing the West in terms of technological adoption and the sector is anticipated to remain a growth sector, according to Betashares.
Over half of the ETF is invested in businesses based in China. Another 20.7% is invested in Taiwan. After that, there is a 19.2% weighting to South Korean businesses. India is the final country with substantial exposure of 5.1%.
In terms of sectors, there are four sectors that have an allocation of more than 10%. The first is a 28.3% weighting to internet and direct marketing retail. The next allocation is a 19.2% position in semiconductors. The third biggest weighting is a 16.6% position to interactive media and services. The fourth biggest sector position is technology hardware, storage and peripherals with a 15.6% weighting.
The largest portfolio holdings include: Samsung, Taiwan Semiconductor Manufacturing, Meituan, Tencent, Alibaba, JD.com, Pinduoduo, Infosys and Netease.
The ETF has an annual management fee of 0.67% per annum. Despite the fee, it is delivered enormous short-term returns. Over the past six months the net return has been 33.2%, over the last year the net return has been 62% and since inception in September 2018 the net return has been 33.5% per annum.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
- Here’s a fantastic ETF that ASX investors need to know about
- Afterpay and BrainChip were some of the most traded ASX shares last week
- 2 top ETFs delivering solid returns
- 3 great ASX tech shares to buy
- 3 five-star ASX shares to buy in January
Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.