Exchange traded funds (ETFs) can be a great way to balance out your portfolio.
This is because ETFs provide investors with easy access to a large and diverse group of shares that you wouldn’t usually have access to.
With that in mind, I have picked out two ETFs that are popular with investors right now. Here’s what you need to know about them:
BetaShares Global Cybersecurity ETF (ASX: HACK)
If you’re wanting to add some tech shares to your portfolio then you could do this with the BetaShares Global Cybersecurity ETF. This ETF gives investors exposure to the leading companies in the growing global cybersecurity sector.
Among the companies you’ll be investing in with this ETF are Accenture, Cisco, Cloudflare, Crowdstrike, and Okta.
With cybercrime on the rise, demand for cyber security services has been growing fast and is expected to continue doing so in the years that follow. This means many leading companies in the industry could be in a position to grow at an above-average rate over the next decade.
Over the last five years, the fund has generated a return of 21.6% per annum. This would have turned a $10,000 investment into $26,500.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
Another ETF for investors to look at is the VanEck Vectors Morningstar Wide Moat ETF. This fund aims to invest in a group of companies with sustainable competitive advantages and attractive valuations.
Among the 50 companies included in the fund are the likes of Alphabet, Amazon, American Express, Boeing, Coca-Cola, McDonalds, Microsoft, Philip Morris, Pfizer, and Salesforce.
Companies with competitive advantages have historically generated strong returns for investors. It is for this reason that Warren Buffett looks for these advantages when choosing his investments.
Over the last five years, the index the fund tracks has generated a return of 19.8% per annum. This would have turned a $10,000 investment into almost $25,000.
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Motley Fool contributor 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 and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns shares of and has recommended 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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