Home / Sector / ETFs / 2 ASX growth ETFs I think could double in value over the next year
ETFs covering high growth sectors have the potential to deliver significant capital gains
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Kate O'Brien studies commerce and finance at university and previously worked as an analyst and consultant in the finance industry. Kate inherited her interest in equities from her family of economists who applied their knowledge of economics to financial markets. Having managed her own portfolio for several years, Kate is a fan of diversity and believes in combining value and growth investing. When not researching or writing, Kate is a keen AFL fan.
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Exchange Traded Funds (ETFs) can be attractive investment vehicles for those looking to gain exposure to sectors without needing to purchase stocks directly. An increasing number of ASX ETFs are making it easier than ever for investors to access specialised markets and growth opportunities.
Known for their cost-effectiveness, ETFs provide the flexibility of buying and selling throughout the trading day, just like stocks. They also have the advantage of built-in diversification. This can help manage risk while providing the potential to participate in the growth of multiple companies. For investors aiming for growth in emerging and rapidly evolving sectors, growth ETFs can serve as a key component of strategic investment portfolios.
High growth technology
The robotics, artificial intelligence (AI), video gaming, and esports sectors are at the forefront of technological innovation and market growth. Investors interested in these areas could see strong returns over the near future. The rapid pace of technological advancements in AI and robotics is transforming industries globally, enhancing productivity and creating new market opportunities.
Similarly, video gaming and esports industries are benefiting from increased engagement and broader demographic appeal. Gaming is becoming a mainstream form of entertainment with competitive gaming adding a new dimension to the industry. Meanwhile, Esports has created a substantial market for game publishers, developers, hardware manufacturers, and streaming services.
Growth ETF: robotics and AI
The Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ) provides exposure to key players in the robotics and artificial intelligence sectors. This includes companies involved in industrial robotics, automation, autonomous vehicles, and AI technology. Tracking the Indxx Global Robotics & Artificial Intelligence Thematic Index, the fund offers significant growth potential. This is due to its focus on companies likely to benefit from increased adoption and technological advancements in these fields.
Growth ETF: video gaming and esports
The VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO) offers access to some of the biggest companies in the video gaming and eSports industries. These include global leaders like NVIDIA Corp (NASDAQ: NVDA) and Activision Blizzard Inc (NASDAQ: ATVI). The gaming industry has seen exponential growth in recent years, driven by increasing consumer demand and the shift towards digital entertainment.
ESPO is positioned to capitalise on gains in this sector as eSports gain recognition as a legitimate sport. Continuous innovation in gaming technology and the rising popularity of interactive entertainment provide strong tailwinds.
Why I think these growth ETFs could double in value
RBTZ and ESPO represent compelling opportunities in the rapidly growing fields of AI and e-gaming. Both ASX ETFs are positioned in sectors that have shown robust growth in recent years with no signs of slowing down. Investing in these ETFs could be particularly attractive for those bullish on technological innovation and consumer engagement in digital platforms.
RBTZ and ESPO focus on future technologies and entertainment, sectors poised for significant expansion in the coming years. For this reason, I think these ASX ETFs have the potential to produce substantial returns, even doubling in value over the coming year.
