When it comes to investing in exchange-traded funds (ETFs), I think some of the best options out there are growth ETFs. ETFs have a reputation for being 'passive' investments best suited to investors who want to put them in the bottom drawer and never look at them again. Whilst that's true for index funds like the iShares Core S&P/ASX 200 ETF (ASX: IOZ), not all ETFs should be tarred with this brush. So here are 3 high-growth ETFs that I think all growth investors should be looking at investing in today.
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3 high-growth ETFs
1) BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)
This is a relatively new ETF, having only started out back in March of this year. However, since then ATEC has been on an absolute tear, rising more than 40% since its inception (and that includes through the March crash). I like ATEC as it's one of the only ASX ETFs purely dedicated to tracking ASX tech companies. You'll find the popular buy now, pay later share Afterpay Ltd (ASX: APT) and online furniture hawker Temple & Webster Group Ltd (ASX: TPW) here, as well as other WAAAX shares like Xero Limited (ASX: XRO) and Appen Ltd (ASX: APX). If you're bullish on the ASX tech sector, I think this ETF is a great candidate for your portfolio today.
2) ETFS FANG+ ETF (ASX: FANG)
This ETF is also a relatively new addition to the ASX, having started life in February of this year. FANG invests in the shares held in the NYSE FANG+ Index. This includes the eponymous FAANG stocks of Facebook Inc (NASDAQ: FB), Apple Inc. (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX) and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL). It also includes a few more tech high flyers such as Microsoft Corporation (NASDAQ: MSFT), Tesla Inc (NASDAQ: TSLA), Alibaba Group (NYSE: BABA), NVIDIA Corporation (NASDAQ: NVDA), Baidu Inc (NASDAQ: BIDU) and Twitter Inc (NYSE: TWTR).
Having only these 10 holdings makes FANG a highly concentrated investment, but with its growth titan holdings, investors might not mind too much. FANG has also had a stellar start to life, delivering a return of 45.91% since its inception. If you don't have as many of these companies in your portfolio as you might otherwise like to, I think FANG is a perfect choice for a growth-orientated portfolio today.
3) Betashares Global Cybersecurity ETF (ASX: HACK)
Our final high-growth ETF is another fund from BetaShares, this time specialising only in companies within the cybersecurity space. With the increasing importance of the digital world to corporations and governments globally, I see a bright future for this sector. And this ETF gives us an easy ticket in.
HACK holds a basket of 43 shares from around the world, with its top holdings including Crowdstrike Holdings Inc (NASDAQ: CRWD), Broadcom Inc (NASDAQ: AVGO), Okta Inc (NASDAQ: OKTA) and Splunk Inc (NASDAQ: SPLK). HACK has been around a little longer than ATEC or FANG and has returned an average of 22.6% per annum over the past 3 years. Not a bad return!
