Although high-flying ASX stocks such as Appen Ltd (ASX: APX) and AfterPay Touch Group Ltd (ASX: APT) have given growth investors huge gains recently, Exchange Traded Funds (ETFs) are often overlooked by growth investors. Although Index funds like the Vanguard Australian Shares Index ETF (ASX: VAS) are loved for buy-and-hold, passive investing, not all ETFs conform to this stereotype. Here are two ASX ETFs that are a little more exotic and could be considered as a sector-based cornerstone of a growth portfolio (note the creative ticker symbols – they make for easy remembering!).
BetaShares Global Cybersecurity ETF (ASX: HACK)
HACK, which is operated by BetaShares, aims to follow the Nasdaq Consumer Technology Association Cybersecurity Index and gives exposure to the leading companies in the global cybersecurity sector. There is no doubt that with the continued growth of all things internet, the demand from governments, businesses and individuals for cybersecurity products and services will continue to rise well into the future. Top holdings include Cisco Systems Inc. and Symantec Corporation (owner of Norton Anti-Virus). I think cybersecurity is a good bet for future growth and this ETF gives investors a fabulous entry point to this industry on the ASX. HACK charges a management fee of 0.67%
ETFS ROBO Global Robotics and Automation ETF (ASX: ROBO)
ROBO is run by ETF Securities and tracks the Global Robotics and Automation Index. Robotics and automation is a pretty safe bet on the future in my opinion. Global names like Amazon and Tesla are heavily investing in automation and the implications are sure to reach across every sector of the global economy as advances are made. This ETF is globally diversified, with 44% of holdings based in the US and a further 24% in Japan. Top holdings include NVIDEA Corp, Qualcomm and iRobot (the US company, not the Will Smith movie). ROBO charges a management fee of 0.69%.
Foolish Takeaway
If you are looking to add a bit of spice to your portfolio, I think either of these two ETFs would be worth a look. Although the ASX is a fantastic index with wonderful companies, it's no secret that it seriously lacks exposure to both the cyber-security and robotics sectors. Both of these ETFs can make up for this shortfall and can give investors diversified international exposure to solid companies within solid growth industries. If you're after more ASX growth stocks, be sure to check out the report below.
