3 ETFs perfect for an ASX growth investor

Here's why I would recommend these 3 ETFs to any ASX growth investor looking for market-beating returns over the long run!

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Exchange-traded funds (ETFs) are not normally the domain of the growth investor. Index funds like the Vanguard Australian Shares Index ETF (ASX: VAS) are very popular investments in this space. But they are usually favoured by passive investors who are not trying to beat the market long-term.

But there are ETFs out there that are more growth-orientated. These have proven themselves to deliver market-beating performances (as well as market-beating ticker codes!). Here are 3:

3 growth ETFs to hold for the long term

Betashares Global Cybersecurity ETF (ASX: HACK)

Aside from this fund's brilliant ticker code, I also think it's worth a look at from a growth perspective. As its name suggests, HACK invests in companies around the world that operate in the cyber security sector. This is an industry that has been growing enormously over the past decade, both in size and importance. I also think there's plenty of room for future growth as our reliance on the internet continues to accelerate. 

HACK has returned an average of 16.7% per annum since listing in 2016. I believe these returns, along with the future-proof nature of the cyber security industry, mean this ETF would be perfect for growth investors. 

ETFS Morningstar Global Technology ETF (ASX: TECH)

This ETF is set up to track a basket of tech stocks the fund believes have market-leading positions as well as sustainable competitive advantages. By its nature, TECH invests in growth companies and has returned a pleasing 24.37% per annum since its inception in 2017. Some of its current holdings include Microsoft, Fortinet, Splunk and Intel.

As such, TECH is a perfect choice for any tech-focused growth investor. It might also suit those investors looking to increase their global exposure to the technology sector as a whole.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

This ETF (another from BetaShares) tracks tech stocks that hail from Asian markets such as China, Taiwan and Korea. Shares from these countries don't often find their way into Australian investment portfolios. Yet, in my opinion, they present some of the best growth opportunities for the 21st century.

ASIA's primary focus is on tech companies and you'll find some familiar names in its holdings. There's Afterpay Ltd's (ASX: APT) new business partner Tencent Holdings, as well as Alibaba, JD.com and Baidu (sometimes called the Google of China). ASIA has returned an average of 14.6% per annum since its inception in 2018.

Foolish takeaway

For a diversity play, as well as exposure to significant growth opportunities, I believe these 3 ETFs are top picks for ASX growth investors today!

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ETFS Morningstar Global Technology ETF. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia owns shares of AFTERPAY T FPO and BETA CYBER ETF UNITS. 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.

More on Growth Shares

two children squat down in the dirt with gardening tools and a watering can wearing denim overalls and smiling very sweetly.
Growth Shares

How to maximise $10,000 by investing in 2 ASX growth shares

Here are my best growth ideas on the ASX right now.

Read more »

A man sees some good news on his phone and gives a little cheer.
Growth Shares

These ASX 200 growth shares could rise 50% to 60%

Big returns could be on offer from these growing companies according to analysts.

Read more »

Sports fans looking at smart phone representing surging pointsbet share price
Growth Shares

Up 111% in six months, this soaring ASX share is backed to keep rising

One fund manager thinks this ASX growth share can continue its phoenix performance.

Read more »

a happy investor with a wide smile points to a graph that shows an upward trending share price
Growth Shares

These ASX growth shares are being tipped to smash the market

Returns of 14% to 68% could be on the cards for buyers of these shares according to brokers.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Growth Shares

These ASX 200 growth shares could rise 50% to 70%

Analysts are predicting these stocks to rise materially from current levels.

Read more »

A young boy sits on his father's shoulders as they flex their muscles at sunrise on a beach
Growth Shares

2 ASX 300 growth shares with 'strong momentum' this fund manager says are buys

These two stocks have plenty of growth potential, according to experts.

Read more »

Rocket going up above mountains, symbolising a record high.
Growth Shares

2 high-growth ASX shares to buy now

Analysts at Bell Potter think these shares would be great picks for growth investors.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Growth Shares

These ASX 200 growth stocks could rise 30% to 100%

Analysts think these shares are dirt cheap at current levels and have put buy ratings on them.

Read more »