Exchange-traded funds (ETFs) can be a very useful way for people to invest in the share market for the long-term.
There are plenty of investment options to choose from on the stock market, it can be hard to pick. ETFs enable people to invest in a whole sector, or even the whole share market.
I like buying assets at a good price. There have been widespread declines for the share market this year. This makes it a good time to invest, in my opinion.
I’d love to buy these two ETFs right away.
Betashares Global Cybersecurity ETF (ASX: HACK)
Cybersecurity is very topical at the moment, with hacks hitting both Optus and Medibank Private Limited (ASX: MPL). I believe that businesses and governments will need to increase their defensive capabilities to ensure they don’t fall foul of a hack or other forms of cyber crime.
While it’s hard to say which cybersecurity businesses will ultimately win, I think investing in the sector as a whole gives access to this attractive industry.
Inside the portfolio are names like Infosys, Cisco Systems, Broadcom, Palo Alto Networks, Crowdstrike, Booz Allen Hamilton, Leidos, Check Point Software and Thales. It has a total of 37 investments.
The Betashares Global Cybersecurity ETF price has dropped by 25% this year, so I think this is a great time to be investing in this defensive yet growing sector.
Betashares Cloud Computing ETF (ASX: CLDD)
The cloud computing sector is another industry that has suffered this year.
Betashares Cloud Computing ETF is invested in a portfolio of businesses that earn a significant amount of their revenue from cloud computing services.
The world’s data and software is steadily moving onto digital platforms, so there’s an attractive revenue growth runway. Technology normally comes with a good gross profit margin as well.
What sorts of businesses are in the portfolio? These are the biggest positions: Netflix, Dropbox, Paycom, SPS Commerce, Wix.com, Box, Akamai Technologies, Qualys and Salesforce.com.
The Betashares Cloud Computing ETF has dropped by a whopping 40% since the start of the year.
While it’s true that businesses should be worth less with higher interest rates, I think it’s now a much better valuation to buy into these businesses that have growth in their futures.