We had a positive end to trading today after a rather shaky start to the week. Markets witnessed a degree of volatility induced by, you guessed it – inflation! However, fears eased soon after as investor sentiment suggests that inflation is rather transitory in nature.
Banks and Materials were the top performers today as they rallied the ASX 200 index to a 0.5% gain. But if you are an investor who wants to passively manage your portfolio, the daily ongoings of the market probably do not interest you and they should not. Theme investing and passive investing has become extremely popular with ETFs. The low cost nature of most of these Exchange Traded Funds also make it look good from a long-term investor’s standpoint.
Today, we have two interesting ETFs that can be considered, especially if growth and diversification is your agenda!
Best ETFs Of the Week
BetaShares Asia Technology Tigers ETF (ASX: ASIA)
ASIA aims to track the performance of an index (before fees and expenses) comprising the 50 largest technology and online retail stocks in Asia (ex-Japan), including technology giants such as Alibaba, Tencent, Baidu and JD.com. The ETF gives investors exposure to the ‘technology tigers’ leading Asia’s (ex-Japan) technological revolution. Due to its younger, tech-savvy population, Asia is surpassing the West in terms of technological adoption and the sector is anticipated to remain a growth sector.
ASIA provides diversified exposure to a high-growth sector that is under-represented in the Australian sharemarket, and a complement to investors with U.S. technology exposure. The management cost is fairly low, coming in at 0.67% and it has over $700 million in Net Assets. With China and much of Asia leading growth, ASIA etf is a brilliant, low-risk way of gaining exposure to emerging markets.
VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)
MOAT gives investors exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages according to Morningstar’s equity research team. The MOAT ETF allows investors to gain exposure to the biggest companies in the world – such as the likes of Google, Amazon, Intel, etc. The aim of the fund is to look for companies that are trading at a modest multiple relative to its growth forecast, and of course these companies need to have a significant competitive advantage over their peers.
The management fee charged here is lower than ASIA, coming in at 0.49% and Morningstar has $298 million in Net Assets in MOAT. The total return of MOAT in the last year has been over 22% and with exposure to the biggest companies in the USA, MOAT is a no-brainer for most long-term ETF investors.
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