AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Summary
- An exchange traded fund (ETF) is a kind of security that tracks an index, sector, commodity, or other asset but which trades on the stock exchange just like a regular stock.
- ETFs can have all types of investments such as stocks, commodities, or bonds etc.
- Since these have low expense ratios and fewer broker commissions, these funds are advantageous to investors than stocks.
An exchange traded fund (ETF) is a kind of security that tracks an index, sector, commodity, or other asset but which trades on the stock exchange just like a regular stock.
ETFs can have all types of investments such as stocks, commodities, or bonds etc. Since these have low expense ratios and fewer broker commissions, these funds are advantageous to investors than stocks. As a result, the compound annual aggregated growth (CAGR) of the Australian ETF industry has grown up by 45% per annum between August 2001 and March 2020.
Source: © Timbrk | Megapixl.com
Here we will discuss the seven best ETFs on ASX for growth:
BetaShares Asia Technology Tigers ETF (ASX:ASIA)
The index tracks the price movements of a portfolio containing the top 50 technology and online retail stocks by free-float market capitalisation. The index consists of technology giants such as Alibaba, Tencent, Baidu and JD.com. These stocks have their main area of business in Asia, excluding Japan. In the last one year, it has provided a return of 47.46% after fees.
READ MORE: 4 ASX-listed stocks with dividend yield over 5%
BetaShares Global Cybersecurity ETF (ASX:HACK)
The investment objective of the BetaShares Global Cybersecurity ETF is to provide an investment return that aims to track the performance of the Nasdaq CTA Cybersecurity index, before considering fees and expenses. The index has companies such as Accenture, Cisco, Cloudflare, Crowdstrike, Okta, and Splunk. The one-year fund returns after fees stand at 16.93%.
BetaShares NASDAQ 100 ETF (ASX:NDQ)
The fund gives investors exposure to 100 of the highest quality growth shares across the world. These are 100 of the largest non-financial companies on the NASDAQ and includes Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla. In the last one year, it has provided a return of 23.03% after fees.
Source: © Rawpixelimages | Megapixl.com
ETFS Morningstar Global Technology ETF (ASX:TECH)
The fund invests in global technology companies that include hardware, software, and IT services and tracks the performance of the Morningstar Developed Markets Technology Moat Focus Index. The index comprises 25 to 50 global technology companies engaged in software, semi-conductor, data processing, computer equipment and databases. In the last 12 months, it has given a return of 17.68%.
Vaneck Vectors Australian Banks ETF (ASX:MVB)
The index seeks to provide an investment return that tracks the performance of the MVIS Australia Banks Index. The index comprises the largest and most liquid ASX-listed businesses that yield a minimum of 50% of their revenues or assets from the Australian banking sector. Top Holdings of the index include Commonwealth Bank of Australia, National Australia Bank and Australia & New Zealand Banking Group. MVB has given a negative return of 17.95% since its launch.
READ MORE: Which stock has paid the highest dividend in 2021?
VanEck Vectors Video Gaming and eSports ETF (ASX:ESPO)
The ETF has exposure to a portfolio of 25 companies involved in video game development, hardware, and esports. Among the companies included in the fund are graphics processing unit developer Nvidia and game developers Activision Blizzard, Take-Two and Electronic Arts. The ETF generated a return of 33.6% per annum over the last five years.
iShares S&P 500 ETF (ASX:IVV)
The ETF provides investors with the performance of the famous S&P 500 index, before fees and expenses. This index seeks to give investors exposure to the top 500 US stocks through a single investment. Among the ETF’s largest holdings are Amazon, Apple, Berkshire Hathaway, Facebook, JP Morgan, Johnson & Johnson, Microsoft, and Tesla. The fund gave an average return of 17.9% per annum over the last ten years.
READ MORE: Five exciting ASX stocks you might not want to miss
