2 good ETFs that might be buys

ETFs can be a really good way to invest, like Betashares Global Cybersecurity ETF.

| More on:
The letters ETF on wooden cubes with golden coins on top of the cubes and on the ground

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) can be a good way to find diversification.

Some ETFs give exposure to hundreds or even thousands of businesses. While others might have less than 50 positions.

These two ETFs could be ones to think about:

Vanguard Msci Index International Shares ETF (ASX: VGS)

This ETF is about investing in the global share market with businesses that are listed across the world in economically developed countries.

It's invested in over 1,500 businesses. The portfolio is predominantly invested in US businesses such as Apple, Microsoft, Amazon.com, Alphabet, Facebook, Tesla, JPMorgan Chase, Johnson & Johnson, Visa, UnitedHealth, Berkshire Hathaway, Nvidia and Home Depot.

But there are portfolio positions that are listed in other countries like Nestlé, ASML, Roche, LVMH, Novartis, Toyota, SAP, Softbank and AstraZeneca.

It's invested in plenty of countries other than the US like Japan, the UK, France, Canada, Germany and Switzerland.

The biggest sector allocation is around 22% of the portfolio to information technology. Other sectors in the portfolio with a double digit allocation include financials, healthcare, consumer discretionary and industrials.

Vanguard Msci Index International Shares ETF has an annual management fee of 0.18%, which is one of the lowest fees in the global ETF market.

The returns of the ETF have been double digit over the long-term. Since inception in November 2014 it has produced net returns of 13% per annum. However, past performance is not an indicator of future performance.

Betashares Global Cybersecurity ETF (ASX: HACK)

This ETF has a much more focused portfolio than the Vanguard one. It has a total of 40 positions in the portfolio.

Its biggest holdings are: Cisco Systems, Accenture, Crowdstrike, Zscaler, Splunk, Proofpoint, Fortinet, Akamai Technologies, Juniper Networks and Leidos.

These businesses are global leaders and emerging players in the cybersecurity space. Cybercrime is on the rise in a world where more important information and data is held online.

More than half of the portfolio is invested in businesses that focus on systems software, but other sectors include IT consulting, communications equipment, internet services and infrastructure, application software and so on.

It has an annual management fee of 0.67%. Betashares Global Cybersecurity ETF has grown its net assets to approximately $492 million.

The large majority of this ETF's portfolio is invested in US shares, with a weighting of around 90%. The only other countries with a weighting of more than 1% are: Israel (3.4%), the UK (3.1%), Japan (1.4%) and France (1.4%).

Past performance is not an indictor of future performance, but Betashares Global Cybersecurity ETF has produced an average return per annum of 19.3% since inception in August 2016.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares 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

A smiling woman with a satisfied look on her face lies on a rug in her home with her laptop open and a large cup on the floor nearby, gazing at the screen. researching new ETFs
ETFs

Is the Vanguard Australian Shares High Yield ETF (VHY) unit price a buy for passive income?

The VHY ETF has a reputation for big dividends. Is it a buy today?

Read more »

A man in his office leans back in his chair with his hands behind his head looking out his window at the city, sitting back and relaxed, confident in his ASX share investments for the long term.
ETFs

3 strong ASX ETFs to buy for simple investing

These funds make investing in quality stocks very easy.

Read more »

An older gentleman leans over his partner's shoulder as she looks at a tablet device while seated at a table.
ETFs

What is the Vanguard Australian Shares Index ETF (VAS) dividend yield?

This fund is known for paying sizeable income. But how big?

Read more »

Man looking at an ETF diagram.
ETFs

Why these ASX ETFs could be strong buys in August

Let's see why these funds could be worth adding to a balanced investment portfolio.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Invested in ASX MOAT or other VanEck ETFs? It's dividend day!

Show us the money!

Read more »

female real estate agent stands proudly in front of house
ETFs

Can't break into the housing market? Here's 3 REIT ASX ETFs to consider

These three thematic funds focus on real estate 

Read more »

asx shares to buy and hold represented by man happily hugging himself
ETFs

5 fantastic ASX ETFs to buy and hold forever

These funds could be destined to deliver strong returns over the next decade and beyond.

Read more »

A woman looks questioning as she puts a coin into a piggy bank.
ETFs

The pros and cons of buying iShares S&P 500 ETF (IVV) units this month

Is this a good time to invest in this leading ETF?

Read more »