2 outstanding ETFs for ASX investors to buy in February

Here's why the BetaShares NASDAQ 100 ETF (ASX:NDQ) and this outstanding ETF could be great options for ASX investors in February…

| More on:
Rising asx share price represented by woman with excited expression holding laptop

Image source: Getty Images

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) continue to grow in popularity with Australian investors.

And it isn't hard to see why. Through a single investment, ETFs allow investors to invest in a large number of shares that they wouldn't ordinarily have access to.

But given the large number of ETFs to choose from, it can be difficult to decide which ones to buy. Two that come highly rated are listed below:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The BetaShares Asia Technology Tigers ETF gives investors exposure to a number of the biggest tech shares in the Asia market. BetaShares notes that due to its younger, tech-savvy population, Asia is surpassing the West in respect to technological adoption. In light of this, the sector is anticipated to remain a growth sector for some time to come.

Among the fund's holdings you will find the likes of Alibaba, Baidu, JD.com, NetEase, and Tencent.

In respect to Tencent, it is a multinational technology conglomerate and one of the largest companies in the world.

Tencent's communication and social platforms, Weixin and QQ, connect over a billion users with each other and with digital content and services, both online and offline, making their lives more convenient.

The company is also well-known for its portfolio of games that generate billions of dollars in revenue each year. One of those is the smart phone game Honour of Kings, which exceeded 100 million average daily active users for the first ten months of 2020.

Tencent also has a targeted advertising platform that helps advertisers reach out to hundreds of millions of consumers in China.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The BetaShares NASDAQ 100 ETF is one of the most popular ETFs on the Australian share market. It aims to track the performance of the NASDAQ 100.

It comprises 100 of the largest non-financial companies listed on Wall Street's famous exchange. Among its holdings you'll find many of the biggest and brightest tech companies in the world. This includes Amazon, Apple, Microsoft, Netflix, and Google parent, Alphabet.

It also includes some lesser-known companies such as MercadoLibre.

MercadoLibre is an operator of ecommerce platforms in the Latin America market. It is best known for the MercadoLibre Marketplace, which is an automated ecommerce platform that enables businesses and individuals to list merchandise and conduct sales and purchases online. It is often referred to as Latin America's Alibaba.

It also has MercadoPago, which is a financial technology solution platform facilitating transactions on and off its marketplaces, the MercadoCredito lending solution, and the MercadoShops solution. The latter is Latin America's answer to Shopify.

It has been growing at an extraordinary rate over the last decade and shows no signs of stopping any time soon.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS and BetaShares Asia Technology Tigers ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ETFs

an older couple look happy as they sit at a laptop computer in their home.
ETFs

Overinvested in the iShares S&P 500 ETF (IVV)? Here are two alternative ASX ETFs to buy

Here are some compelling options to diversify a portfolio focused on US shares.

Read more »

group of traders cheering at stock market
ETFs

Nvidia soars on game changing news: 3 ASX ETFs set to benefit

Nvidia shares have nearly doubled since their April low.

Read more »

A businessman hugs his computer and smiles.
ETFs

Top ASX ETFs to buy and hold for the next 10 years

Let's see what sets these funds apart from the rest and makes them great buy and hold options.

Read more »

ETF on white blocks with a rising arrow on top of coin piles.
ETFs

Which VanEck ASX ETFs have performed the best in the last year

This ETF provider has released data on their best performing funds. 

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Dividend Investing

Own ASX A200, NDQ, or ARMR ETFs? It's dividend payday for you!

Betashares will pay distributions to ASX ETF investors today.

Read more »

A young female ASX investor sits at her desk with her fists raised in excitement as she reads about rising ASX share prices on her laptop.
Dividend Investing

Why it's a great day for Vanguard ASX ETF investors!

It's dividend payday for investors in the VAS, VHY, VGS and other Vanguard ETFs today.

Read more »

Smiling woman with her head and arm on a desk holding $100 notes out, symbolising dividends.
ETFs

Passive income made simple: 3 ASX ETFs that pay you to hold them

For many investors, the dream is simple: earn consistent income without having to constantly monitor the market. One way you…

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
ETFs

5 excellent ASX ETFs to buy with $10,000

Let's see what these top funds offer Aussie investors.

Read more »