These ASX ETFs just hit 52-week highs but I’d still buy them

Buying an exchange-traded fund (ETF) at a 52-week high can feel uncomfortable.

It is natural to wonder whether the easy gains have already been made. But I do not think a new high automatically means an ETF is too expensive or should be avoided.

Sometimes, a 52-week high simply tells us that momentum has returned to a theme with genuine long-term support.

That is how I am thinking about the ASX ETFs in this article. Both have climbed to new 52-week highs on Wednesday, but I would still consider buying them for the long term.

Global X Artificial Intelligence ETF (ASX: GXAI)

The Global X Artificial Intelligence ETF is the most obvious momentum play of the two.

Artificial intelligence (AI) remains one of the biggest investment themes in global markets. What I like about the GXAI ETF is that it gives investors broad exposure to the companies building, enabling, and using this technology.

That can include areas such as semiconductors, cloud computing, automation, data infrastructure, and AI software.

The key point for me is that AI is not just a short-term market story. I think it could change how businesses operate across almost every industry.

Companies are still working out how to use AI properly. That suggests the adoption curve could run for many years, rather than being finished after one strong rally.

The Global X Artificial Intelligence ETF will probably be volatile. Any ETF tied to a hot theme can move quickly in both directions.

But if AI keeps becoming more useful, more widely adopted, and more deeply embedded in business workflows, I think this ETF could still have plenty of long-term potential.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The Betashares Asia Technology Tigers ETF is another ASX ETF I would consider, even after its move higher.

It gives investors access to major technology companies across Asia.

I like this because many Aussie portfolios are heavily tilted towards Australia and the US. Asia can be underrepresented, even though the region is home to large digital platforms, semiconductor leaders, gaming businesses, e-commerce giants, and payment networks.

This ETF is not just about one country or one trend. It gives investors exposure to the digitalisation of Asian economies, rising middle-class consumption, online services, and regional technology leadership.

There are risks. Asian technology shares can be affected by regulation, geopolitics, currency movements, and changing investor sentiment.

But for investors willing to take a long-term view, the ASIA ETF could provide exposure to a part of the global technology market that is often overlooked.

Foolish takeaway

A 52-week high is not always a reason to walk away. In some cases, it can be a sign that investors are returning to themes with genuine long-term growth potential.

I would not expect either of them to move in a straight line from here. But for investors who can handle volatility and think in years rather than weeks, I believe both ASX ETFs could still be worth buying after hitting new highs.

The post These ASX ETFs just hit 52-week highs but I’d still buy them appeared first on The Motley Fool Australia.

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• Buy these exciting ASX ETFs for AI exposure

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 no position in any of the stocks mentioned. 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.