• Christopher Hall

TOP ETFs on the ASX this week – month to 3 July 2020

Asian exposure and technology slants are the leaders on the ASX this week, followed by Gold, Biotech and FANGs.

The gold mining companies (GDX) are reflecting the US Gold prices at seven-year highs.

Over the last few months, the AUD has rallied from $0.55 to near $0.70 which mutes the AU Gold price form record highs.

The other thematics which cover industrial companies, have been rallying from their lows with the market drops of CV-19. Although, most of these thematics were running strongly into the March 2020 falls.

Exchange Traded Funds (ETFs) are a trading instrument that make buying a basket of shares as simple as buying a share on the ASX. The beauty of ETFs is that they bundle similar shares together so that investing in an industry, thematic or economic concept is far easier than months of research to pick the top companies of the respective group.

The month to 3 July 2020 has seen the top ETFs as:

1 ASIA: run by Betashares, is built to provide exposure to 50 of the most innovative and disruptive technology companies in Asia, including Alibaba, Tencent, Baidu and JD.com – companies that are revolutionising the lives of billions of people in the Asian region.

2- CNEW: run by VanEck, gives investors a portfolio of the most fundamentally sound companies in China, having the best growth prospects in sectors making up ‘the New Economy', namely consumer discretionary, consumer staples, healthcare, and technology. CNEW aims to select the 120 companies in China with the best growth at reasonable price (GARP) attributes, which are considered the best drivers of long-term capital appreciation. Companies are selected on the basis of the strength of 24 fundamental indicators across four factor categories: growth, value, profitability and cash flow.

3 -  GDX: also run by VanEck, follows the NYSE Arca Gold Miners Index (GDMNTR). The Index is intended to track the overall performance of companies involved in the gold mining industry. GDMNTR is a modified market capitalisation-weighted index and provides exposure to publicly traded companies worldwide, involved primarily in gold mining, representing a diversified blend of small-, mid- and large- capitalisation stocks.

4 – CURE: run by ETFS, covers the S&P Biotech shares for exposure to the S&P Biotechnology Select Industry Index of U.S; listed companies that are classified biotechnology and meet certain market capitalisation and liquidity requirements. Constituents are equally weighted subject to liquidity.

5 – FANG: also run by ETFS, focuses on those companies representative of high growth technology or advanced technology-driven sectors such as the consumer discretionary on the major US stock exchanges. FANG includes some of the top innovation leaders across today’s technology and tech-enabled companies. It is equally weighted across all companies such as Tesla, Amazon, Netflix, Apple, Nvida, Alphabet (Google) and Alibaba. 

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