The ASX is set to welcome yet another exchange-traded fund (ETF). ETF provider BetaShares has announced that a new thematic fund is set to join its ranks soon – and it will track companies that operate in the cloud.

What is BetaShares

BetaShares is one of the ASX’s most well-known ETF providers. It currently offers a range of ETFs that span simple market-tracking index funds like the BetaShares Australia 200 Fund (ASX: A200) to specialised thematic ETFs like the BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ).

What’s this new cloud ETF?

BetaShares has announced that the new ETF will be named the BetaShares Cloud Computing ETF, with the ticker code CLDD. There aren’t too many additional details just yet, but here’s what we know. Firstly, BetaShares has given away that Xero Limited (ASX: XRO) will feature, along with Shopify Inc (NYSE: SHOP), DropBox Inc (NASDAQ: DBX), and Zoom Video Communications Inc (NASDAQ: ZM).

BetaShares tells us that this new ETF will aim to bring 3 benefits to ASX investors: growth potential from the cloud growth space, a ‘pure-play’ exposure to the cloud, and diversification from a basket of shares that are underrepresented on the ASX.

The ETF will track an index dedicated to following the cloud computing sector. This index looks to be the Indxx Global Cloud Computing Index. This index holds 36 stocks, with the top 5 constituents being Fastly, Zscaler, Shopify, Proofpoint and Twilio.

It also holds some of the larger, more familiar cloud giants like Amazon, Microsoft, Alibaba, Alphabet and Netflix.

What kind of performance can we expect?

Well, the ETF hasn’t even launched yet, so take this with a grain of salt. But according to BetaShares, “the index that CLDD will aim to track” has delivered an annual average performance (in Australian dollar terms) of 34.4% per annum between November 2013 and the end of January 2021. Of course, past performance is no indication of future returns. But it is informative knowing that this index will have some nice historical returns behind it.

BetaShares has not yet told us when this ETF will hit the ASX boards. But all ASX cloud enthusiasts should watch this space!

More reading

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• 4 steps to pick winning ASX shares
• 2 ASX 200 shares to buy for growth

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. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares) and Dropbox, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alibaba Group Holding Ltd., Alphabet (A shares), Amazon, Microsoft, Netflix, Shopify, Twilio, and Zoom Video Communications and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended Alphabet (A shares), Amazon, Netflix, Twilio, and Zoom Video Communications. 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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The Telstra Corporation Ltd (ASX: TLS) share price was a positive performer on Thursday.

The telco giant’s shares rose 2.5% to $3.25 following the release of its half year results.

Is it too late to buy Telstra shares?

According to analysts at Goldman Sachs, they still believe there’s a lot of value in the Telstra share price at the current level.

This morning the broker retained its buy rating and lifted its price target on the company’s shares to $4.00.

Based on the current Telstra share price, this price target implies potential upside of 23% over the next 12 months excluding dividends. This potential return stretches to approximately 28% if you include the 16 cents per share dividend the company plans to pay.

What did Goldman say?

The broker notes that management is suggesting that an earnings’ inflection is imminent in the second half of FY 2021.

This is expected to be driven by ongoing cost reductions and a robust mobile service revenue outlook. Goldman explained that the latter is due to its positive average revenue per user (ARPU) outlook and ongoing strength in sub growth, supported by the clear 5G lead that Telstra holds.

Its analysts believe this makes Telstra’s dividend secure.

It commented: “Telstra indicated that it would pay 16¢ in FY21, which we believe is sustainable in FY22, given we forecast FY22 FCF/share of 24cps, with lost NBN earnings / WC build (mobile hardware) mostly offset by underlying EBITDA growth and lower capex.”

The broker then believes that Telstra can sustain this dividend from earnings per share from FY 2023. Though, it suspects there could be upside risk due to its belief that its future free cash flows could provide for a larger payout.

Is a re-rate of the Telstra share price coming?

Goldman believes that the Telstra share price could re-rate to higher multiples as the market becomes more confident on its earnings.

It concluded: “We stay Buy on Telstra ahead of the earnings’ inflection, believing that it will re-rate as it becomes a ‘simpler’ telco post NBN completion, along with further upside from possible asset monetisations; Catalysts include: (1) Tower update in March; (2) FY21 results and corresponding mobile inflection in August; and (3) Nov-20 ID when post T22 plans are outlined.”

More reading

• ASX 200 drops slightly, Telstra rises, AMP sinks
• Telstra (ASX:TLS) share price surges after earnings
• ASX 200 down 0.1%: Telstra update impresses, AMP sinks, Newcrest jumps
• Why Mesoblast, Newcrest, Sezzle & Telstra shares are racing higher
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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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The Kathmandu Holdings Ltd (ASX: KMD) share price is on watch today following the Kiwi retailer’s trading update.

Why is the Kathmandu share price on watch?

Kathmandu reported record Rip Curl performance leading to strong half-year earnings before interest, tax, depreciation and amortisation (EBITDA).

Kathmandu reported half-year total group sales up ~12% to the six months ended 31 January 2021 (1H 2021). 

The retailer said half-year sales growth reflected the successful integration of Rip Curl and a diversified portfolio of brands. However, Kathmandu sales were impacted by low demand for insulation and rainwear due to reduced international travellers in the Northern Hemisphere.

Kathmandu expects to report unaudited group EBITDA above last year thanks to the strong Rip Curl result. Half-year EBITDA is expected to be in the range of $47 million to $49 million. 

That result came from across key global markets despite coronavirus disruptions. Sixty Melbourne stores were closed for 11 weeks in Victoria’s second lockdown with 14 Auckland stores closed for over two weeks.

The Kathmandu share price is one to watch as investors digest the latest numbers.

The retailer intends to report its half-year results on Tuesday 23 March including an announcement regarding dividend resumption.

Group CEO Xavier Simonet said the record result “highlights the strength of its brand and quality technical products”. Forward orders for the Rip Curl wholesale business are above pre-COVID levels with “encouraging early indications for future seasons”, Mr Simonet added.

The search continues for a new CEO following the resignation of Mr Simonet in November 2020.

The Kathmandu share price has slumped nearly 49% in the last 12 months after being slammed in the March bear market.

Foolish takeaway

Kathmandu has entered the second half of the financial year with strong momentum. That’s despite COVID-19 disruptions such as store lockdowns across major markets.

The record Rip Curl result has underpinned an uplift in EBITDA which makes the Kathmandu share price worth watching in early trade.

More reading

• With retail sales numbers rising, how are these 3 ASX shares performing?

Motley Fool contributor Ken Hall 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 Bruce Jackson.

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Etherstack PLC (ASX: ESK) shares will be on watch this morning following the company’s announcement regarding a new Australian Defence contract award. At market close yesterday, the Etherstack share price finished the day 0.8% higher at 62 cents.

It will be interesting to watch how the company’s shares perform today as investors digest this morning’s update.

What did Etherstack announce?

The Etherstack share price could be on the move today following the company’s latest positive update.

In yesterday’s late market announcement, Etherstack advised it has entered into a subcontract with Australian defence contractor, Electro Optic Systems Holdings Ltd (ASX: EOS).

The agreement will see Etherstack deliver services to an undisclosed project with the Australian Department of Defence.

The contract’s value is estimated to be around $500,000, and the company expects it to be material in FY21.

Etherstack noted that this deal is now the second contract with the Australian Department of Defence. Previously the company signed a $4.1 million contract to supply its technology and associated delivery services to the Australian Government.

What did the CEO say?

Etherstack CEO David Deacon highlighted the company’s attractive opportunity in the defence and government markets. He said:

We are pleased that the Australian Department of Defence are committing to Australian Industry Content via meaningful awards. Etherstack has had significant international defence wins over the past two decades and it is great to be winning and delivering projects in our home market

About the Etherstack share price

The Etherstack share price has risen more than 220% over the past 12 months. The company’s shares hit a low of 12 cents in June last year, before sharply increasing later that month. Notably, its shares hit a record high of $3.70 after the company announced a global team agreement with major electronics house, Samsung.

Based on the current share price, Etherstack commands a market capitalisation of around $80 million.

More reading

• Cathie Wood announces space ETF, what about the ASX space sector?

Aaron Teboneras owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited. 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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As well as being home to countless blue chip shares, the Australian share market is home to a good number of promising small caps.

Two small cap ASX shares that could be worth adding to your watchlist are listed below. Here’s what you need to know about them:

SILK Laser Australia Limited (ASX: SLA)

The first small cap ASX share to look at is SILK Laser. It is a laser, skin care, and cosmetic injections company.

It has been growing very strongly in FY 2021 and recently released a trading update for the first five months of the financial year. At that point, the company revealed that its unaudited network cash sales were up 63% on the prior corresponding period to $38 million. Pleasingly, this means SILK Laser is on track to beat its forecasts for the year.

Looking ahead, management sees plenty of opportunities to drive growth through the expansion of its network of clinics. At the last count, SILK Laser had a total of 53 clinics in operation. Management believes it can grow its network by 6 to 10 new clinics per annum up to a total of approximately 150 clinics.

Sovereign Cloud Holdings Ltd (ASX: SOV)

Sovereign Cloud is an infrastructure as a service (IaaS) company supporting the secure and continuous delivery of information. It counts the Australian government, the Australian Defence Force (ADF), and Critical National Industry (CNI) communities as customers.

Through the AUCloud brand, the company’s IaaS service provides customers with a highly secure, scalable, automated cloud solution, delivering an efficient and effective hosting environment for critical and sensitive applications and systems.

Positively, the services and data managed by AUCloud are all hosted and maintained in Australia. This compares to other global IaaS brands which may store data overseas, opening the stored data up to potential legal and jurisdictional compromise.

With cyber threats to government and commerce posed by malicious actors increasing, demand for its services is expected to grow strongly in the future.

More reading

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Motley Fool contributor James Mickleboro 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 Bruce Jackson.

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Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) may be one of the leading ASX dividend shares to consider for income.

What is Soul Patts?

Soul Patts describes itself as a significant investment house with a portfolio encompassing many industries including its traditional field of pharmaceuticals, as well as mining, building materials, property investment, telecommunications, financial services and other equity investments.

It listed over a century ago in 1903 as a pharmacy business and since then it has diversified into many other industries.

The company can boast of having long-term employees. More than 40 employees have worked for the company for over 50 years. Five generations of the Pattinson family have served the company, as have three generations of the Dixson, Spence, Rowe and Letters families.

In terms of its investment style, the ASX dividend share says that it has a diversified portfolio of uncorrelated investments across listed equities, private equity and venture capital, property, corporate loans and cash. It tries to be counter cyclical and have a value focused approach.

WHSP says that it has a flexible mandate which allows the company to back companies at an early stage and grow with them over the long-term.

What are the types of companies that it owns?

Soul Patts has a number of listed investments in its portfolio. Its largest positions include: TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Australian Pharmaceutical Industries Ltd (ASX: API), Milton Corporation Limited (ASX: MLT), Bki Investment Co Ltd (ASX: BKI), Clover Corporation Limited (ASX: CLV) and Tuas Ltd (ASX: TUA). It also owns shares of the listed Apex Healthcare which is listed in Malaysia.

The ASX dividend share also owns a small cap portfolio which was worth around $250 million at the end of July 2020, represented by 39 holdings. Soul Patts explains that this portfolio is full of fast growing companies that are outside the companies monitored by the large cap portfolio managers. In Soul Patts’ FY20 the portfolio outperformed the ASX Small Ords Accumulation Index by 12.9%.

Soul Patts also runs a private equity portfolio. It’s invested in things like agriculture and swimming schools (Aquatic Achievers). Other individual businesses that it’s invested in include Ampcontrol, coffee roasters Seven Miles, cleaning business Dimeo and Verdant Minerals.

Why could it be such a good ASX dividend share?

The company has the longest dividend growth streak on the ASX, it has increased its dividend every year since 2000 including through COVID-19.

Its diversified portfolio gives it a broad range of exposures and sources of investment income. Soul Patts receives cashflow in the form of dividends, distributions and interest which it can then pay on to shareholders as growing dividends. It retains some of the net cashflow each year to invest into more opportunities.

One of Soul Patts’ stated aims is steady and growing dividends. The other main aim is the growth in the capital value of the portfolio (measured by growth in the net asset values).

Soul Patts has said that cash generation from the portfolio remains strong to support dividends, whilst maintaining liquidity available for new investments. The ASX dividend share’s portfolio continues to diversify – it’s looking for more opportunities in the luxury independent living development space.

At the current Soul Patts share price it has a grossed-up dividend yield of 3%.

More reading

• 2 ASX 200 shares that keep growing their dividends
• How big will the ASX bank dividends be in 2021 and beyond?
• 3 top ASX dividend shares to buy
• 2 ASX dividend shares offering big yields today
• Got money to invest for dividends? Here are 3 ASX shares

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. 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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Although the pandemic has accelerated the shift to the cloud, there’s still a long way to go until this structural shift completes. This bodes well for companies with exposure to the technology.

But how can you gain exposure to this thematic on the Australian share market? Two ASX growth shares which look perfectly positioned to benefit from the cloud computing megatrend are listed below. Here’s what you need to know about them:

Megaport Ltd (ASX: MP1)

Megaport is a leading global provider of elastic interconnection services across data centres globally.

It offers scalable bandwidth for public and private cloud connections, metro ethernet, and data centre backhaul. The company has networking equipment in hundreds of data centres around the world, which has created a software layer that provides an easy way for users to create and manage network connections.

This means that through the Megaport network, users can create and run a global network with or without the need for physical infrastructure.

Earlier this week the company released its half year results and revealed Monthly Recurring Revenue (MRR) of $6.3 million. This was up 37% year on year and annualises to revenue of $75.6 million.

Analysts at Goldman Sachs were pleased with its update and have put a buy rating and $15.55 price target Megaport’s shares. The broker believes the migration to public cloud infrastructure is likely to remain a strong theme and expects Megaport to benefit.

NEXTDC Ltd (ASX: NXT)

Another ASX growth share with exposure to the cloud is NEXTDC. It is a leading data centre-as-a-service provider with a growing number of centres in key locations across Australia.

The accelerating shift to the cloud led to NEXTDC reporting extremely strong demand for capacity in its data centres in 2020. So much so, it brought forward capacity additions and data centre developments.

Since then, the company has raised significant funds via a notes offering. It has also opened up offices in Tokyo and Singapore with a view of expanding into these markets in the future. If this international expansion is a success, it could provide NEXTDC with a very long runway for growth over the next decade and beyond.

Morgan Stanley is positive on the company and currently has an overweight rating and $14.60 price target on its shares.

More reading

• ASX 200 rises 0.5%, CBA reports, Crown deemed unsuitable for Sydney
• Why the Megaport (ASX:MP1) share price is surging 7% higher today
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• 3 outstanding ASX shares growing rapidly
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James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. 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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Is the Commonwealth Bank of Australia (ASX: CBA) share price a buy after it just reported its FY21 half-year result?

What was the FY21 half-year result like?

A lot of analyst eyes were on the biggest bank’s report. CBA is able to give investors an insight into many different areas of the economy such as the housing market, household finances and business demand for credit.

The big bank reported that cash net profit after tax (NPAT) declined by 10.8% to $3.89 billion. Statutory net profit dropped 20.8% to $4.88 billion. CBA said that NPAT was supported by strong business outcomes but impacted by the low rate environment and COVID-19. Statutory net profit included gains on the sale of divestments including BoComm Life.

CBA’s net interest margin (NIM) was 2.01%, down 3 basis points on the second half of FY20 and down 10 basis points on the first half of FY20. The bank said that the NIM declined mainly due to higher liquid balances and the impact of the low rate environment on deposits and capital earnings, partly offset by lower wholesale funding costs.

The bank’s total loan impairment expense was increased again by $233 million to $882 million to reflect the uncertain economic outlook and emerging industry risks in particular for the aviation and entertainment, leisure and tourism sectors.

CBA’s common equity tier 1 (CET1) capital ratio rose to 12.6%, driven by “strong” organic capital generation and ongoing benefits of divestments supported by higher capital levels, which remain well above APRA’s ‘unquestionably strong’ benchmark of 10.5%.

The CBA share price fell on the day of the report, but it rose 1% yesterday.

CBA dividend

The bank’s board decided to declare an interim dividend of $1.50 per share. That represents a 53% increase on the second half of FY20, though it’s down 25% on the first half of FY20. This dividend represented a cash payout ratio of 67%, below the board’s target payout ratio range.

The verdict on the CBA share price

Different brokers have had their say on what they thought about the CBA report.

Morgans said that the profit was a bit better than the broker was expecting. There was positive signs in home lending. CBA’s plan to become a bigger bank in the business lending sector is also producing results, growth here was also better than Morgans expected.

However, Morgans thinks it’s a tricky environment for CBA to operate in with low interest rates being a dampener on the net interest profit outlook. Competition for mortgages is also hurting the NIM. However, the broker thinks that the NIM can remain stable.

With those positives in mind, Morgans increased its price target for CBA shares from $64 to $68. However, that still implies a decline of over 20% from here.

UBS may be one of the most positive brokers about CBA. The broker liked how much capital that CBA has on the balance sheet. UBS said that the banks, like CBA, are leveraged well to the recovery of the Australian economy. The low interest rates make things difficult, but the broker feels that CBA can generate more income than the broker thought it was going to be able to.

UBS has a CBA share price target of $90, it’s one of the only brokers that thinks CBA shares can rise further from here in the shorter-term.

More reading

• Top brokers name 3 ASX shares to sell today
• 4 steps to pick winning ASX shares
• ASX 200 rises 0.5%, CBA reports, Crown deemed unsuitable for Sydney
• The real reason the Afterpay (ASX:APT) share price is at a record high
• How big will the ASX bank dividends be in 2021 and beyond?

Motley Fool contributor Tristan Harrison 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 Bruce Jackson.

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If you are looking for ASX dividend shares that you can buy and hold, then you might want to take a look at the ones listed below.

Here’s why they could be positioned to grow their dividends consistently over the next decade and beyond:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT. It is the largest ASX-listed real estate investment trust investing in high quality social infrastructure properties.

These properties are those with specialist use, limited competition, and low substitution risk. This includes childcare centres and government properties.

Earlier this week the company released its half year results and delivered a 14.1% increase in operating earnings to $29.1 million. It also revealed an occupancy rate of 99.7% and a very lengthy weighted average lease expiry (WALE) of 14 years. This was up 1.3 years from the end of June.

Management also advised that the number of leases on fixed rent reviews has increased to 63.3%, which bodes well for its future rental income growth.

Thanks to its strong form, the company has lifted its FY 2021 distribution guidance to 15.7 cents per unit in FY 2021. Based on the current Charter Hall Social Infrastructure share price, this represents an attractive 5.2% yield.

Rural Funds Group (ASX: RFF)

Another ASX dividend share that could be a great long term option is Rural Funds. It is a real estate investment trust (REIT) that owns a diversified portfolio of high quality Australian agricultural assets

At the last count, Rural Funds’ 61 properties had a WALE of 10.9 years. Importantly, these leases include rental increases which are designed to allow the Rural Funds board to increase its distribution by 4% per annum.

This year the company intends to do precisely that and is forecasting a full year distribution of 11.28 cents per unit. Based on the current Rural Funds share price, this equates to a generous 4.5% yield.

More reading

• Charter Hall Social Infrastructure (ASX:CQE) shares higher after upgrading dividend guidance
• 3 top ASX dividend shares to buy
• 2 reliable ASX dividend shares to buy
• 2 ASX dividend shares with yields above 4.5%
• Beat deposit rate cuts with these ASX dividend shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. 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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There are a few great ASX growth shares that may be worth thinking about right now.

Here are two ideas:

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is an ASX growth share which specialises in software and finance tools for the large and medium US church sector.

The company says that it provides a donor management system, including donor tools, finance tools and a custom community app, and a church management system to the faith sector, non-profit organisations and education providers located predominately in the US and other jurisdictions.

It also owns Church Community Builder, which provides a software as a service (SaaS) church management system. The platform allows churches to connect and communicate with their community members, record member service history, track online giving and perform a range of administrative functions.

The ASX growth share boasted that with Pushpay and Church Community Builder combined they deliver a best-in-class, fully integrated church management system, custom community app and giving solution for customers in the US faith sector.

Pushpay has seen a large increase in demand for its services over the last year through the difficult COVID-19 pandemic period.

In the FY21 half-year report, Pushpay’s processing volume increased by 48% to US$3.2 billion. This drove operating revenue higher by 53% to US$85.6 million.

That result saw Pushpay’s profit margins continue to increase. The gross profit margin increased by three percentage points from 65% to 68%. The earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) margin improved from 17% to 31%.

Operating cashflow rose by 203% to US$27 million and net profit after tax (NPAT) increased by 107% to US$13.4 million.

In a recent update, Pushpay upgraded its EBITDAF guidance to a range of US$56 million to US$60 million, up from previous guidance of US$54 million to US$58 million. This happened because it received higher donations in December 2020 than expected and operating leverage continues to accrue.

The ASX growth share has also allocated an initial investment of resources into developing and enhancing the customer proposition for the Catholic segment in the US.

At the current Pushpay share price, it’s trading at 22x FY23’s estimated earnings.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This is an exchange-traded fund (ETF) which gives investors exposure to 100 of the largest non-financial businesses on the NASDAQ, which is a stock exchange in North America.

Many of the world’s biggest technology companies can be found on the NASDAQ. Just look at the ETF’s biggest positions: Apple, Microsoft, Amazon, Tesla, Alphabet, Facebook, Nvidia, PayPal and Netflix.

This group of businesses, which includes the ‘FAANG’ shares have been delivering outperformance for a long time as their profits and market share continue to grow.

The net returns of this ASX growth have been an average of 21.25% per annum since the ETF’s inception in May 2015. Over the last five years it has delivered an average return per annum of 23.3% and over the last three years it has returned an average of 25.7% per annum.

There’s more to Betashares Nasdaq 100 ETF than simply the world’s biggest tech names. There are also other large, growing businesses like Intel, Adobe, Broadcom, Qualcomm, Costco, Texas Instruments, Advanced Micro Devices, Applied Materials, Intuitive Surgical, Mercado Libre, Zoom, Activision Blizzard and Moderna.

Betashares Nasdaq 100 ETF has an annual management fee of 0.48% per annum. 

More reading

• 2 extraordinary ASX shares to buy in 2021
• Nasdaq at record high! Here’s what it means for the ASX 200
• Afterpay and Zip were among the most traded ASX shares last week
• Got cash to invest? Here are 3 ASX shares to buy
• 3 great ASX tech shares to buy

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETANASDAQ ETF UNITS and PUSHPAY FPO NZX. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS and PUSHPAY FPO NZX. 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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