There are a lot of exchange traded funds (ETFs) for investors to choose from on the Australian share market right now.
But one of the very best is arguably the BetaShares Asia Technology Tigers ETF (ASX: ASIA). Below are three reasons to consider buying this popular ETF.
1. Diversification
The BetaShares Asia Technology Tigers ETF provides investors with diversified exposure to a high-growth sector that is under-represented in the Australian share market. Diversification is very important when it comes to investing. For example, if you’re only invested in the local share market and something unexpected happens to the Australian economy, then your portfolio is liable to underperform one which has exposure to economies that continue to boom.
2. Tech exposure
Another reason to consider this ETF is its exposure to the growing Asian tech sector. The fund is invested in a total of 50 “technology tigers” that are leading Asia’s (excluding Japan) technological revolution. BetaShares notes that due to its younger, tech-savvy population, Asia is surpassing the West in respect to technological adoption. As a result, the sector is expected to remain a growth sector for some time to come. This could make the ETF a good buy and hold option.
3. Quality companies
One key final reason to consider the BetaShares Asia Technology Tigers ETF is the quality of the companies that are included in it. Among the fund’s holdings you will find the likes of Alibaba, Baidu, JD.com, Meituan Dianping, Pinduoduo, Samsung, Tencent. Alibaba is regarded as the Amazon of China and reported 757 million annual active customers last year. Whereas Tencent is one of the world’s largest companies and the name behind the hugely popular WeChat app. At the last count, that app had over 1.2 billion active users.
Over the last 12 months the BetaShares Asia Technology Tigers ETF has provided investors with a very impressive 69.6% return.
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More reading
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- 2 high quality ASX ETFs to buy this month
- 2 tech ETFs for ASX investors to buy after the market selloff
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers 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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