2 ASX exotic ETFs I would buy today

Exchange-traded funds (ETFs) are some of the most interesting investments to look through in my opinion. The index funds variety, exemplified by the Vanguard Australian Shares Index ETF (ASX: VAS), are certainly the most popular. But many investors think index funds like VAS are a little ‘vanilla’. Sure, they have important roles to play, and are great long-term investments. But there are some more exotic ETFs out there that do offer a bigger slice of pizazz, let’s say. So here are 2 exotic ETFs that I think all investors should consider today.

2 exotic ETFs for an ASX share portfolio

BetaShares Global Cybersecurity ETF (ASX: HACK)

This ETF from BetaShares does what its name implies. It tracks a basket of global shares involved in the provision of cybersecurity. I really like this ETF because it comprehensively covers an area seeing strong growth, which I think will last for decades to come. Think about how important cybersecurity is today, for individuals, companies and governments. Then think about how important it will be into the future as more and more commerce, communications and government services are done online. I’m sure you’ve reached a similar conclusion than I have.

HACK is heavily weighted towards the United States, with 89% of its holdings listed in the US. However, Britain, Israel and Japan also feature. Some of HACK’s top holdings include CrowdStrike, ZScaler, Okta and Cisco Systems. This ETF has returned an average performance of 21.04% over the past 3 years, which I think could well happen again over the next 3 and beyond.

ETFS FANG+ ETF (ASX: FANG)

This ETF is a highly concentrated fund tracking a basket of US shares known as the FANG+ stocks. FANG (sometimes FAANG) is an old acronym referring to Facebook Inc (NASDAQ: FB), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX) and Google parent company Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL). Apple Inc (NASDAQ: AAPL) is the other A in FAANG.

This ETF tracks all 5 of these US tech titans, plus another 5 extras. These include Tesla Inc (NASDAQ: TSLA), Twitter Inc (NASDAQ: TWTR) and Alibaba Group (NYSE: BABA) as well.

These are some of the best tech companies in the world, and I like that this ETF puts them all together in one easy investment. This ETF was only created in February this year, but since then it has already returned 54.7% (despite the March share market crash). If you want a strong, US-based and growth-orientated investment, then I don’t think you need to look any further than FANG.

More reading

• 2 high-quality ETFs to buy for any portfolio
• Top ASX growth shares to buy in October 2020

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Baidu, Facebook, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, Baidu, Facebook, Netflix, Tesla, and Twitter and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Facebook, and Netflix. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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