Growth investment is one area that I find exchange-traded funds (ETFs) most useful. Sure, picking a single ASX winner like Afterpay Ltd (ASX: APT) is highly lucrative. But it's also highly difficult to get in before 'the crowd'.
By using an ETF to gain exposure to a high-growth industry or sector, you can somewhat mitigate the risk while still giving your portfolio the potential of high returns.
Let's look at 2 high-growth ETFs that I think fit the bill.
High-growth ETF 1) BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)
This ETF is a relatively new addition to the ASX, only listing back in early March (unfortunate timing there). Even so, I think it's one of the most exciting, high-growth ETFs available on the ASX. ATEC tracks a basket of ASX shares that mirrors the S&P/ASX All Technology Index (ASX: XTX). This index aims to hold only ASX shares that are, according to Betashares, "leading ASX-listed companies in a range of tech-related market segments such as information technology, consumer electronics, online retail and medical technology".
Some of ATEC's current top holdings include names many ASX growth investors would be familiar with, such as Afterpay, Xero Limited (ASX: XRO), Altium Limited (ASX: ALU) and Seek Limited (ASX: SEK). Even though ATEC has only been around a few months, it has already delivered a return of 23.55% since inception. The index it tracks has an average return of 17.8% per annum over the past 5 years. That's a pretty good track record in my view and makes this fund one of the most exciting high-growth ETFs on the ASX.
2) BetaShares Asia Technology Tigers ETF (ASX: ASIA)
Another ETF from Betashares, this one also covers a basket of up-and-coming tech shares. But rather than holding ASX companies like Afterpay and Xero, ASIA instead tracks tech companies that operate in the Asian region (as the name implies). Most of the fund's holdings (56.2%) come from China. But it also has significant exposure to Taiwan (20.9%), South Korea (17.3%) and India (5.1%) as well.
You might know some of this fund's top holdings as well, which include Tencent Holdings, Alibaba Group, Samsung Electronics and JD.com.
ASIA has a few more runs on the board than ATEC but was still only incepted back in September 2018. Since then, it has delivered an average annual return of 27.77%. That's a return I would be very happy to have collected! As such, I think this fund is another top high-growth ETF that I think would make an exciting addition to your ASX portfolio today.
