2 top ETFs that might be buys in September 2021

The two ETFs in this article could be solid long-term ideas.

| More on:
green etf represented by letters E,T and F sitting on green grass

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) could be a good way to invest into shares.

There are lots of different investments to consider. Businesses in the technology space may have a particularly good outlook because of the higher margins and the typically stronger growth profile.

These two could be particularly good ones to think about:

Betashares Global Cybersecurity ETF (ASX: HACK)

This is a sector-based ETF. As the name may suggest, it gives investor exposure to the global cybersecurity space.

Betashares says that with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future. The size of the global cybersecurity market is expected to be US$248.26 billion, up from US$137.63 billion in 2017.

The portfolio includes global cybersecurity giants, as well as emerging players, from across the world. A vast majority of the portfolio, around 90.3%, is from the US. But the underlying earnings are effectively from around the world.

In terms of the actual holdings, there are a total of 39 positions. But the biggest 10 positions: Crowdstrike, Okta, Accenture, Cisco Systems, Cloudflare, Fortinet, Varonis Systems, Cyberark Software and Splunk.

Whilst systems software makes up just over half of the portfolio, the ETF is allocated to other segments like communications equipment, internet services and infrastructure, research and consulting, IT consulting and other services, and application software.

Past performance is not a reliable indicator of future performance, but the Betashares Global Cybersecurity ETF has performed strongly since inception in August 2016 with an average return per annum of 22.3%.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This ETF is an index based on the largest 100 non-financial businesses listed on the NASDAQ stock exchange.

As BetaShares says, it includes some of the most innovative companies that are revolutionising our lives and at the forefront of the new economy.

It has an annual management fee of 0.48% which gives fairly concentrated exposure into names like Apple, Microsoft, Amazon.com, Alphabet, Facebook, Tesla, Nvidia, PayPal and Adobe.

But there's also more to the portfolio than just the largest global tech names. Other names in the portfolio include Cisco Systems, PepsiCo, Broadcom, Costco, Texas Instruments, Honeywell and Moderna.

Whilst it's not necessarily meant to be very tech heavy, it is. Around half of the portfolio is IT, with another 19.7% in communication services and 16.7% in consumer discretionary. Alphabet, Facebook and Netflix count as communication services. Amazon, Tesla and MercadoLibre count as consumer discretionary.

Since inception, Betashares Nasdaq 100 ETF has seen an average return per annum of 23.1% including the fees.

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 and BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. 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 businessman in the city looks at his phone and punches the air in celebration of good news.
ETFs

Up 40% in 2024, why I'd still buy the Global X Fang+ ETF (FANG)

This fund has already delivered great returns. I think there’s more to come.

Read more »

Young girl starting investing by putting a coin ion a piggybank while surrounded by her parents.
ETFs

5 ASX ETFs for beginner investors in 2025

Start your investment journey with these funds that offer exposure to some of the best companies in the world.

Read more »

The letters ETF sit in orange on top of a chart with a magnifying glass held over the top of it
ETFs

3 of the best ASX ETFs to buy in December

Here are three funds to consider adding to your portfolio next month.

Read more »

Man holding a calculator with Australian dollar notes, symbolising dividends.
ETFs

If I'd invested $5,000 in this ASX S&P 500 Index Fund 5 years ago, here's how much I'd have now

Would it have been a good idea to buy this ETF? Let's find out.

Read more »

Happy young woman saving money in a piggy bank.
ETFs

Did you know these ASX stocks are in the Vanguard Australian Shares Index ETF (VAS)?

The VAS ETF is an index fund that tracks the 300 biggest listed companies by market capitalisation.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
ETFs

5 excellent ASX ETFs for a $500 investment next month

If you have $500 available to invest in the share market, then the exchange traded funds (ETFs) in this article…

Read more »

The letters ETF with a man pointing at it.
ETFs

IOZ vs VAS: Which is the better ASX Australian shares ETF to buy right now?

These funds are both popular options. Which is better?

Read more »

a man wearing casual clothes fans a selection of Australian banknotes over his chin with an excited, widemouthed expression on his face.
ETFs

Buy these ASX ETFs for passive income in 2025

These ETFs could be used to generate passive income next year.

Read more »