These ASX ETFs just hit record highs, is there more to come?

It can feel harder to buy an ASX exchange-traded fund (ETF) after it has just hit a record high.

The easier moment is usually when markets are nervous and prices are lower. But I do not think a record high automatically means the opportunity is over.

Two ASX ETFs that reached record highs this week are the iShares Global 100 ETF (ASX: IOO) and the Betashares Global Cybersecurity ETF (ASX: HACK).

I think both remain buys, even if the bargain-buying period has likely passed.

iShares Global 100 ETF

The IOO ETF is one of the simplest ways to invest in some of the world’s biggest listed companies.

It gives investors exposure to 100 large global businesses. These are not obscure companies hoping to become relevant one day. Many are already dominant in their industries, with huge customer bases, strong brands, global reach, and deep financial resources.

I like that because large winners can keep winning for a long time.

A business that already has scale can often afford to invest heavily in technology, product development, logistics, marketing, acquisitions, and new markets. That can help defend its position and create more growth over time.

The IOO ETF also gives investors exposure to companies that are difficult to replicate through Australian shares alone. That could include global technology giants, healthcare leaders, consumer brands, payments businesses, and other multinational compounders.

A record high does mean investors are no longer buying at the same attractive levels they might have seen during a weaker market. But I think the better question is whether the companies inside the fund can keep growing earnings over the next decade.

I think many of them can.

There will still be market pullbacks, and the IOO ETF could fall if global shares weaken. But for investors wanting exposure to world-class businesses in one ASX trade, I think it remains a strong option.

Betashares Global Cybersecurity ETF

The HACK ETF has also pushed to record highs.

I think this is one of the more interesting thematic ETFs on the ASX because cybersecurity is becoming a core business need.

Companies, governments, hospitals, banks, schools, infrastructure operators, and individuals all face growing digital threats. As more activity moves online, the cost of weak security can become enormous.

That creates a long-term demand driver for cybersecurity spending.

What I like about the HACK ETF is that it gives investors exposure to a basket of global companies working across different parts of the cybersecurity market. This can include network security, cloud protection, identity management, threat detection, endpoint security, and other tools that organisations need to protect data and systems.

Cybersecurity is not a discretionary trend in the same way as some other themes. Many organisations have little choice but to keep investing, because the risks of falling behind are too high.

That does not mean the HACK ETF will rise smoothly. The holdings can be growth-oriented, and valuations can become stretched when investors get excited about the theme.

But I think the long-term direction is clear. The world is becoming more digital, and that means security spending is likely to remain important.

Foolish Takeaway

Record highs can make investors hesitate, and I understand why.

Nobody wants to buy just before a pullback. But waiting for the perfect entry point can also mean missing years of compounding from strong businesses and powerful themes.

The IOO ETF gives exposure to global leaders that can keep reinvesting at scale, while the HACK ETF gives exposure to a cybersecurity market that I think will remain essential for years.

Neither looks like a bargain after hitting record highs. But I do not think long-term investors should need a bargain price to buy a quality ETF. If the underlying opportunity is still strong, I think both could have more to come.

The post These ASX ETFs just hit record highs, is there more to come? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.