Exchange traded funds (ETFs) provide investors with an easy way to invest in a large number of shares through just a single investment. This includes whole indices, commodities, or even investment themes.
Unsurprisingly, this has gone down well with investors and has led to their popularity surging in recent times. In fact, November was another record-breaking month for the local ETF industry.
If you’re looking to join in on the action, then you might want to get better acquainted with the two ETFs listed below:
BetaShares Global Cybersecurity ETF (ASX: HACK)
The BetaShares Global Cybersecurity ETF aims to track the performance of an index that provides investors with exposure to the leaders in the global cybersecurity sector. This includes a number of cybersecurity giants and emerging players, such as Accenture, Cisco, and Cloudflare, Crowdstrike, and Okta.
With cybercrime on the rise, BetaShares notes that demand for cybersecurity services is expected to grow strongly for the foreseeable future. This could lead to this side of the market outperforming the broader market over the coming years.
And with the cybersecurity sector heavily under-represented on the ASX, this ETF ensures that Australian investors don’t miss out on these potential returns.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
When it comes to choosing shares to buy, Warren Buffett often talks about companies with moats. These are sustainable competitive advantages, which over the long run have supported earnings growth and underpinned strong returns for the legendary investor.
Identifying companies with moats can be time-consuming for retail investors. Luckily, VanEck has done the hard work for you and put together a fund with 48 US-based stocks which have sustainable competitive advantages.
Among its holdings are the likes of Amazon, American Express, Boeing, Coca-Cola, Microsoft, Pfizer, and Yum! Brands. Over the last five years the ETF has generated a net return of ~16% per annum for investors.
Where to invest $1,000 right now
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More reading
- 2 ETFs delivering solid returns
- 2 quality ETFs to buy for long-term investing
- 2 ETFs for ASX tech investors to buy today
- 4 ASX growth shares to buy in December
- Why this ASX cybersecurity ETF is a buy today
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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