There are lots of exchange-traded funds (ETFs) to choose from on the Australian share market.
But which ones could be good additions to a growth investor's investment portfolio in September?
Let's take a look at two that could be worth considering this month:
Image source: Getty Images
Betashares Australian Momentum ETF (ASX: MTUM)
The Betashares Australian Momentum ETF could be a great option for growth investors. It is the first ASX ETF to provide investors with access to a momentum strategy over Australian shares.
Momentum investing aims to identify stocks that show a recent trend of outperforming the broad market. It is an approach that is supported by economic theory and empirical data.
Instead of aiming to profit from underlying company fundamentals, momentum investing is based on the theory that rising asset prices often continue rising, and falling prices tend to continue falling.
Betashares recently tipped the ETF as one to buy now. It highlights that the index the fund tracks has outperformed the S&P/ASX 200 index by an average of 2.3% per annum since its inception in May 2011 and through to the end of June 2024.
And this doesn't appear to be a fluke, the fund manager highlights that the index has outperformed the benchmark over most time periods during the 13 years.
BetaShares Diversified All Growth ETF (ASX: DHHF)
Another ASX ETF that Betashares is tipping as a buy is the BetaShares Diversified All Growth ETF. It provides investors with exposure to around 8,000 large, mid, and small cap stocks from Australia, the US, developed markets, and emerging markets.
Betashares notes that this is a diversified portfolio with high growth potential, that may be suitable for investors with a high tolerance for risk.
It also points out that, importantly, the ETF may be rebalanced on a periodic basis to ensure that the portfolio doesn't stray far from its target asset allocation. Its holdings are currently split 36% Australian equities, 39.6% US equities, 18% Developed Markets, and 6.4% Emerging Markets.
BetaShares Crypto Innovators ETF (ASX: CRYP)
A final ASX ETF for growth investors to look at is the BetaShares Crypto Innovators ETF.
It could be worth considering if you have a high tolerance for risk and feel bullish on the long term outlook for the crypto market.
That's because the ETF has been designed to capture the full crypto ecosystem. This includes pure-play crypto companies, those whose balance sheets are held at least 75% in crypto-assets, and diversified companies with crypto-focused business operations.
If the crypto market booms, then these companies are likely to be dragged along for the ride.
