Hi Boon,
As we’ve touched on before we’re always cautious around new ETFs with the providers searching for volume which by definition means they’re often in the current “Hot Thing” just before it experiences a pullback.
- Thirty ETFs have listed on the ASX since May the average calculable return as of Thursday is -0.2%, not overly exciting with the ASX 200 up more than 4% over the same period.
VanEck Quantum Computing ETF (ASX: QNTM): This ETF provides exposure to global companies involved in the development and commercialisation of quantum computing technologies. The ETF offers diversified access to an emerging technology expected to have applications across areas such as AI, healthcare, cybersecurity and financial services.
- We like the premise behind this ETF but aren’t considering investing in these early days.
VanEck Global Semiconductor ETF (ASX: SMHG): This ETF provides exposure to leading global companies involved in semiconductor design, manufacturing and equipment. The ETF offers diversified access to growing chip demand driven by AI, data centres, cloud computing, automation and electrification.
- At this stage we prefer the more established Global X Semiconductor (SEMI) ETF for semiconductors – its holdings are similar and costs the same. Out of the two you specifically asked about, we would see QNTM as the higher risk, higher potential reward option relative to SMHG.
