Exchange Traded Funds (ETFs) have continued to grow in popularity among investors in 2021. So we couldn’t forget to highlight some of the ETFs that have caught our attention over the past year.
From those just getting started to our seasoned ETF investors, here are some of the Rask team’s most interesting ETFs during 2021.
Please note, these are not official ETF recommendations from Rask Australia. In cases where the staff member owns units, this has been disclosed. Always do your own research, take our free ETF investing course and talk to a professional adviser before investing.
Owen Rask – Founder & Lead Analyst
BetaShares Ethical High Growth ETF (ASX: DZZF). This is an ETF I do not own however it’s one of the leading *diversified* ETFs which also provides ethical filters over the investments it holds. It’s not a one-stop-shop and it’s not a ‘one size fits all’ (there are less risky options).
However, I find it convenient, reasonably low priced and the ethical criteria are better than most other ethical strategies.
Disclosure: Owen has no financial interest in any of the companies/ETFs mentioned.
Lachlan Buur-Jensen – Rask Media Contributor
I’m talking my own book, but I think the Betashares Nasdaq 100 ETF (ASX: NDQ) is the best ETF on the planet. You’re basically getting exposure to the 100 biggest technology focused companies in the world. Microsoft, Google, Amazon, Tesla, Netflix, Paypal… the list just goes on.
These businesses are at the forefront of innovation and are growing at an enormous scale. Valuation is always a concern, but dollar cost-averaging into this bad boy makes it the best ETF this year, next year and every year after that.
Disclosure: Lachlan owns units of the NDQ ETF.
Value Downunder – Rask Media Contributor
The BetaShares ASIA ETF (ASX: ASIA). I think a lot of thematic ETFs have jumped the shark, and it can be really difficult to look under the hood at the holdings and draw a parallel to the marketing materials they are using.
At least with ASIA ETF, you know what you are getting: Asian tech. And right now, there’s heaps of value in Asian tech.
Disclosure: Value Downunder has no financial interest in any of the companies/ETFs mentioned.
Monique Pizzica – Podcast Producer & Videographer
Also still learning about these! Just getting my head around what each ETF is and what they cover, by completing the Rask Education ETF Investing Course.
Kate Campbell – Community & Education
I used to own it before it was sold to make way for other positions, but I do appreciate an ETF using filters to identify companies with large moats, now that I know how important having a point of differentiation in a crowded market is for a company to take off.
Disclosure: Kate has no financial interest in any of the companies/ETFs mentioned.
Sally O’Brien – Graphic Designer & Copy Editor
After learning about the difference between sustainable and ethical ETFs, I’m researching sustainable ETFs that include companies working towards improving the environment. I’m interested in the newly established ETF, VanEck Vectors Global Clean Energy ETF (ASX: CLNE).
This small thematic ETF focuses on companies associated with solar energy, wind power, hydroelectricity, biofuel, and geothermal energy.
Disclosure: Sally has no financial interest in any of the companies/ETFs mentioned.
Jaz Harrison – Rask Media Contributor
This isn’t an ETF, but a listed investment company (LIC). It’s WCM Global Growth Ltd (ASX: WQG). It looks at global shares that have a growing economic moat/competitive advantage and a corporate culture that supports the growth of that competitive advantage. WCM believes the direction of the moat is substantially more important than the size of the moat.
The LIC has outperformed the global benchmark (after fees), currently valued at an attractive discount to its pre-tax underlying value (the NTA) and has committed to a growing dividend.
Disclosure: Jaz owns units in the WQG LIC.
Raymond Jang – Rask Invest Analyst
I’m very interested in the VanEck Morningstar Wide Moat ETF (ASX: MOAT), which picks at least 40 attractively priced US wide-moat stocks, determined by Morningstar’s research. Investors should note only a small percentage of companies in the US make up a majority of the returns in the overall market.
It’s often those companies with strong competitive advantages that are able to produce higher than average returns sustainably over the long term.
Disclosure: Raymond has no financial interest in any of the companies/ETFs mentioned.
Cathryn Goh – Rask Investment Analyst
My go-to answer is always the Vanguard Diversified High Growth Index ETF (ASX: VDHG), which just so happened to be my first-ever investment.
But if we’re talking about the most interesting ETFs during 2021, one new ETF that caught my attention during the year is the BetaShares Cloud Computing ETF (ASX: CLDD). I think the cloud computing industry is only going to become more prominent in a tech-fueled world, so the companies inside the CLDD ETF could stand to benefit.
Disclosure: Cathryn owns units in the VDHG ETF. She does not own units in the CLDD ETF.
Over to you
Time to wrap this show up! Hopefully, this has given you a sneak peek into some of the ETFs that our team have found interesting during 2021.
If you’re keen to learn more and start investing, be sure to take our free ETF investing course on Rask Education.