I think that exchange-traded funds (ETFs) could be smart buys in March 2023 after all the share market volatility.
The great thing about ETFs is that they provide diversification through just a single investment.
But, while some ETFs give exposure to a whole index like the ASX 200 Index (ASX: XJO), others are focused on just a specific area of shares.
I believe of these ideas below could achieve strong revenue and earnings growth to 2030 (and perhaps beyond).
Betashares Global Cybersecurity ETF (ASX: HACK)
The global cybersecurity market is growing steadily over the years as more individuals, organisations and governments move to digital operations. It’s important to protect details, intellectual property and so on.
Some of the names in the HACK ETF’s portfolio include: Palo Alto Networks, Fortinet, Cisco Systems, Infosys and Okta.
Over the past five years, the ETF has returned an average of 14.5% per year, though this shouldn’t be used as an indicator of future performance.
If cybercrime continues to increase, I think that would give this ETF a stronger tailwind.
Betashares Climate Change Innovation ETF (ASX: ERTH)
Another theme that could give a group of businesses a strong tailwind is decarbonisation. Many billions are being spent on decarbonising companies and economies. There are a certain group of businesses that are developing the products that are helping the world decarbonise.
The objective of this ETF is to own a portfolio of “up to 100 leading global companies that derive at least 50% of their revenues from products and services that help to address climate change and other environmental problems through the reduction or avoidance of CO2 emissions. This covers clean energy providers, along with leading companies tackling green transport, waste management, sustainable product development, and improved energy efficiency and storage.”
Names include Tesla, BYD, Vestas Wind Systems, Trane Technologies, Ecolab, Cie de Saint-Gobain, American Water Works, Enphase Energy and First Solar.
There’s a lot of global diversification within the ETF, with only 51.5% of the portfolio allocated to the US. A lot of other global ETFs have a higher weighting to the United States.