All market data is sourced from https://www.investsmart.com.au/.

1. Betashares NASDAQ 100 ETF (NDQ)

The NDQ ETF closely tracks the NASDAQ-100 Index. This index comprises the largest non-financial companies listed on the NASDAQ stock exchange, including tech giants like Apple, Amazon, and Google. The ETF's exceptional performance is attributed to the robust growth of the tech sector in the US, especially in areas such as cloud computing, e-commerce, and digital services.

Pros:

• Exposure to leading tech companies with high growth potential.
• Strong historical performance, driven by the growth of the technology sector.

Cons:

• High concentration in tech can be risky if the sector underperforms.
• Potentially high volatility due to market fluctuations in tech stocks.
  

2. Vanguard Australian Shares Index ETF (VAS)

The VAS ETF tracks the S&P/ASX 300 Index, and provides broadly diversified exposure to Australian companies and property trusts listed on the ASX. Due to its broad nature, it is very popular in Australia, and has close to $15B in Assets Under Management.

Pros:

• Provides investors with an efficient way to capture long-term market performance.
• High diversification, meaning the fund is lessexposed to performance fluctuations of individual securities.

Cons:

• High sector-specific risk; vulnerable to commodity price volatility.
• Environmental and regulatory risks impacting resource companies.

‌

3. SPDR S&P/ASX 200 Fund (STW)

Similar to Vanguard's VAS ETF, The STW fund is well-known and widely traded in Australia. It aims to replicate the performance of the S&P/ASX 200 Index by purchasing all 200 top stocks in the Australian market with similar weightings to the index (as opposed to the VAS fund which targets the top 300 stocks).

Pros:

• Easy diversification with a large number of individual stocks
• Access to a locally based basket, giving investors the opportunity to participate in the overall performance of the Australian market

Cons:

• Market volatility within Australia may lead to heavy losses with an all-in on the local market
• Tracking Errors may occur when aiming to replicate a specific index due to the ETF's return deviating from the ASX 200

‌

4. Betashares Global Sustainability Leaders ETF (ETHI)

Similar to Vanguard's VAS ETF, The STW fund is well-known and widely traded in Australia. It aims to replicate the performance of the S&P/ASX 200 Index by purchasing all 200 top stocks in the Australian market with similar weightings to the index (as opposed to the VAS fund which targets the top 300 stocks).

Pros:

• Easy diversification with a large number of individual stocks
• Access to a locally based basket, giving investors the opportunity to participate in the overall performance of the Australian market

Cons:

• Market volatility within Australia may lead to heavy losses with an all-in on the local market
• Tracking Errors may occur when aiming to replicate a specific index due to the ETF's return deviating from the ASX 200

5. Betashares Global Cybersecurity ETF (HACK)

The HACK ETF offers investors access to global companies operating in the cybersecurity industry, mirroring an index of firms engaged in cybersecurity hardware and software. Its robust performance in the last five years has been supported by the growing need for cybersecurity solutions, fuelled by the expanding digitalisation and escalating cyber threats.

Pros:

Exposure to the growing cybersecurity sector Potential for high returns due to increasing demand for cybersecurity solutions.

Cons:

• Sector-specific risk; vulnerable to technological changes and threats.
• Potentially high volatility in a rapidly evolving industry.