There are some excellent exchange-traded funds (ETFs) that I’d want to own in my portfolio. They’d be strong buys in June 2023.
If investors are looking for diversification and growth, I believe these two are excellent options.
VanEck Morningstar International Wide Moat ETF (ASX: GOAT)
This strong ETF is about investing in businesses from around the world that have strong economic moats, or in other words good competitive advantages such as having an excellent brand or some sort of great intellectual property.
The competitive advantages are expected to endure for 20 years or even longer. Target companies are identified by Morningstar analysts as trading at attractive prices compared to Morningstar’s estimate of fair value.
Management fees for this ETF is just 0.55%, so that’s a lot cheaper than what other fund managers might charge. Over the past five years, the index that the GOAT ETF tracks has managed an average net return per year of 12.7%.
At 29 May 2023, some of the biggest holdings include ASML, Fortinet, London Stock Exchange, Safran, Sanofi and Airbus.
Betashares Global Cybersecurity ETF (ASX: HACK)
This ETF is focused on the global cybersecurity sector, from the biggest businesses to emerging players.
Sadly, the number of cybercrime attacks is increasing over time, with the cost of those attacks increasing as well.
But, there are good guys trying to stop those cybercriminals. It’s invested in 35 names, with the biggest positions being Broadcom, Fortinet, Palo Alto Networks, Cisco Systems, Infosys, Crowdstrike, Akamai Technologies, Okta, Open Text and Verisign.
I believe that organisations like governments, banks and e-commerce businesses need to ensure excellent e-security.
As revenue rises, this could drive profit higher as well as share prices and perhaps dividends as well. I think this ETF can keep doing well, though nothing is guaranteed. Over the last five years, the HACK ETF has achieved average net returns of 12.5% per year.
