The technology space has been hit heavily amid higher interest rates. But I think there are some leading ASX exchange-traded funds (ETFs) that could be exciting opportunities for a tech rebound.

When something falls by 50% from $100 to $50, it only needs to get back to $75 to generate a 50% return from that low starting valuation of $50.

I don't think interest rates are going to go back below 2% for the foreseeable future, perhaps for the rest of the decade. But, technology valuations now seem much more reasonable, so I think some of the beaten-up tech ETFs could perform well over the next year or two.

Betashares Cloud Computing ETF (ASX: CLDD)

The Betashares Cloud Computing ETF unit price has fallen around 45% since November 2021. The idea of this ETF is to give investors exposure to the cloud computing trend. Betashares explains:

Cloud computing has been one of the strongest-growing segments of the technology sector, and given much of the world's digital data and software applications are still maintained outside the cloud, continued strong growth has been forecast.

A growing number of different services can now be provided online, giving the ASX ETF growing diversification. Looking at the biggest holdings, these are some of the largest positions: Coupa Software, Sinch, Five9, Workiva, Workday, Shopify and SPS Commerce.

With the collective valuations of the companies involved now much lower, I think this group of businesses could rebound nicely if investor pessimism starts fading when interest rates stop rising.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF is another one that has fallen heavily – it's down around 30% since November 2021.

I think this ETF is invested in some of the highest-quality businesses in the world, they are global leaders in what they do. I'm talking about names like Apple, Microsoft, Alphabet, Amazon.com, Nvidia, PepsiCo, Costco, Cisco Systems, Intuitive Surgical and Moderna.

Interest rates have soared in the US to try to bring inflation under control in the country. An economic downturn may be on the cards. But, I don't think the outlook will always look this pessimistic, particularly when thinking about the long-term. I think this ASX ETF has an attractive future ahead.

When share prices drop heavily, there may be an important negative influencing event going on in the world. But that's when I think investors should become more optimistic about investing and making long-term returns. Be greedy when others are fearful, as the saying goes.

There won't be many times when the Betashares Nasdaq 100 ETF drops by 30%, so I think this could be a good time to invest and then be patient after that.

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Exchange-traded funds (ETFs) can be a really useful way to gain the benefits of diversification. They can also be used to gain targeted exposure to certain areas of the market such as technology through tech ETFs.

While the S&P/ASX 200 Index (ASX: XJO) may not have much technology exposure, it's possible to significantly increase tech exposure by investing in some funds that are designed to follow an index based on video gaming or cloud computing businesses.

Those are the two types of tech ETFs I'm going to write about in this article. They both have promising futures, in my opinion.

Betashares Cloud Computing ETF (ASX: CLDD)

As the name suggests, this EFT is focused on cloud computing businesses.

What that specifically means is that businesses in this portfolio must have a minimum threshold share of revenue from cloud computing services. The ETF's index is constructed so that it prioritises companies that generate the majority of their revenues from cloud-based services, according to BetaShares.

The fund manager has outlined the positive trend that cloud computing businesses are exposed to:

Cloud computing has been one of the strongest-growing segments of the technology sector, and given much of the world's digital data and software applications are still maintained outside the cloud, continued strong growth has been forecast.

At 8 September 2022, these are some of the big names in the portfolio: Netflix, Paycom Software, DigitalOcean, Qualys, Dropbox, SPS Commerce, Akamai Technologies, Salesforce.com, Wix.com and Box.

2022 has been rough. The Betashares Cloud Computing ETF has dropped by 34% since the start of the year, enabling us to invest at what I see as a much cheaper and more attractive price.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

The video gaming sector is another area that has seen quite a lot of growth over the last decade.

Video gaming has been around for decades, but there has been a significant increase in gamers in the last few years. E-sports, in particular, has been growing in popularity, which is a key reason why I like this tech ETF.

According to VanEck, the competitive video gaming audience is expected to reach 646 million people globally in 2023, thanks partly to the increasing number of people using the internet.

E-sports revenue has reportedly increased by an average of 28% per annum since 2015. VanEck said that e-sports had created new potential revenue streams from game publisher fees, media rights, merchandise, ticket sales and advertising.

There are a total of 25 holdings in the portfolio. At the moment, these are the biggest positions in the portfolio: Activision Blizzard, Tencent, Nvidia, Roblox, Advanced Micro Devices, Nintendo, Netease.com, Electronics Arts and Bandai Namco.

The VanEck Video Gaming and Esports ETF has seen a 27.6% decline in value in 2022.

Foolish takeaway

I like the look of both of these tech ETFs because the underlying businesses are seeing revenue growth, growing globally, and now they're a lot cheaper. This is why I'd happily buy some right now.

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The financial year that just ended on 30 June was a tough one for ASX shares. Over FY 2022, the S&P/ASX 200 Index (ASX: XJO) lost 10.19%. So it goes without saying that any ASX exchange-traded fund (ETF) that tracks the ASX 200 gave investors a similar loss.

But were there any ETFs that did even worse? Let's check out the five worst-performing funds of the year.

The 5 worst-performing ASX ETFs of FY 2022

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

Our first laggard is this tech-focused fund from provider BetaShares. ATEC tracks one of the newer ASX indexes in the S&P/ASX All Technology Index (ASX: XTX). It holds many of the ASX's largest tech shares, including Xero Limited (ASX: XRO) and Carsales.com Ltd (ASX: CAR).

Unfortunately, ASX tech shares were some of the hardest-hit companies last financial year, as we can see this in this fund's performance. Over FY 2022, ATEC units lost 35.7% of their value.

BetaShares Cloud Computing ETF (ASX: CLDD)

Another BetaShares ETF, CLDD has only been around since February 2021. But it has certainly had a rough time over its short life. As the name implies, this fund focuses on global companies that operate in the cloud computing arena.

You might know some of its larger holdings such as Zoom Video Communications and Netflix. But having such a potent exposure to tech has also hampered CLDD, with this fund losing 35.79% over FY 2022.

BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Tech is certainly featuring prominently in this list. RBTZ is such an ETF, and one that concentrates on robotics and artificial intelligence companies from around the world. It includes companies such as NVIDIA and Yaskawa Electric Corp. RBTZ took a beating over FY 2022, losing 36.01% for its investors.

ETFS S&P Biotech ETF (ASX: CURE)

A tech ETF of a different kind, this fund from provider ETFS focuses on US biotechnology companies. You'll find COVID-19 vaccine provider Novavax here, as well as Twist Bioscience and Arrowhead Pharmaceuticals. But CURE investors were left wanting in FY 2022, with this fund going backwards by 40.51%.

ETFS Ultra Long NASDAQ 100 Hedge Fund (ASX: LNAS)

Our final and worst-performing ETF of FY 2022 is an index fund of sorts. LNAS tracks the US NASDAQ-100 (INDEXNASDAQ: NDX), giving investors exposure to 100 of the largest companies on the NASDAQ exchange.

However, LNAS is also leverage, meaning it is designed to amplify the gains or losses of the index it tracks. Sadly for investors, FY 2022 was a negative one for the NASDAQ. And due to LNAS's leveraged nature, investors suffered a 49.99% loss as a result.

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Exchange-traded funds (ETFs) can be very useful for investing in shares. ETFs make it to invest passively, get access to different industries or invest in different geographic markets.

One of the most popular ETFs is one that gives access to 500 of the biggest companies in the United States, called iShares S&P 500 ETF (ASX: IVV). That's not a bad choice at all.

But after the recent volatility, I think there are two that could be even more interesting. One provides more diversification in my opinion. While the other may achieve more growth in the coming years because of the businesses it's invested in.

These two shares could be too good to miss after recent declines.

BetaShares Global Quality Leaders ETF (ASX: QLTY)

This ETF is the one that I think can provide more diversification than the S&P 500 fund.

As mentioned, the S&P 500 fund only invests in US shares. Whereas the QLTY ETF portfolio only has a 61% allocation to US shares, ex-US get a weighting of almost 40%. These include Japan, Switzerland, the Netherlands, France, Denmark, Germany, the United Kingdom, the Hong Kong Stock Exchange, and more.

But, the companies are spread across an array of sectors. There are around 150 names in the portfolio, which is a good number.

What attracts me most to this ETF is that it's designed to give access to the "world's highest quality companies". BetaShares looks to create a quality portfolio by only picking businesses that rank well on four factors – return on equity, debt-to-capital, cash flow generation ability and earnings stability.

So, what sort of businesses qualify as quality?

At the latest disclosure on 27 June 2022, these were the biggest 10 positions: Johnson & Johnson, UnitedHealth Group, Alphabet, Automatic Data Processing, AIA Group Limited, Pfizer, Microsoft, Novo Nordisk, L'Oreal and Accenture.

The QLTY ETF has fallen by around 20% since the beginning of the year. So I think this combined group of businesses are now looking better value. At 31 May 2022, it still showed a double-digit return, with the net return over the prior three years being an average of 11.8%.

BetaShares Cloud Computing ETF (ASX: CLDD)

This investment differs from the S&P 500 fund and the QLTY ETF.

BetaShares says the idea behind this ETF is that:

Cloud computing has been one of the strongest-growing segments of the technology sector, and given much of the world's digital data and software applications are still maintained outside the cloud, continued strong growth has been forecast.

To get into this ETF's portfolio, the company must generate a minimum revenue threshold from computing services. The shares that make more money from cloud-based services are prioritised in terms of allocation.

There is a total of 35 names in the portfolio. The biggest 10 positions at the latest disclosure were: DigitalOcean, Zoom Video Communications, Salesforce, Dropbox, Qualys, Netflix, Paycom Software, Digital Realty, Akamai Technologies and SPS Commerce.

I think that the CLDD ETF, as a group of businesses, looks better value after its 30% drop in 2022 to date.

While COVID-19 may have been a temporary boost for some businesses, I think the world will continue to go digital as it has over the past few decades. This should be helpful for revenue growth over time. According to BetaShares' source (Research and Markets), revenue from global cloud computing services was US$371 billion in 2020. This figure is forecast to reach US$832 billion by 2025.

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Many ASX tech shares have fallen heavily since the start of the year. However, I think this is opening up opportunities to buy these companies at better prices.

It's understandable that the inflation environment is hurting the costs of some businesses. And higher interest rates can have a detrimental impact on the valuations of assets.

However, with how far the below ASX tech shares have fallen, I think these two ideas could be ones with good potential for the long-term:

Betashares Cloud Computing ETF (ASX: CLDD)

This is an exchange-traded fund (ETF) that aims to give investors exposure to businesses where a large part of their operations purely involves services or products that use cloud computing.

There are a total of 36 names in the ETF's portfolio. Examples include DigitalOcean, Anaplan, Netflix, Dropbox, Box, Salesforce.com, Paycom Software, Digital Realty Trust, and Qualys.

The idea is that to be eligible for inclusion in the CLDD ETF portfolio, a company's share of revenue from cloud computing services must meet a minimum threshold. It prioritises companies that generate the majority of their revenue from cloud-based services.

I do believe that there is a long-term shift to cloud computing services. But, the rising interest rate environment has led to the large sell-off of the CLDD ETF which has dropped 35% this year. I think this significantly lower price represents attractive value for the long-term.

TechnologyOne Ltd (ASX: TNE)

This ASX tech share provides global enterprise resource planning software and it's steadily shifting its clients onto a cloud-based, software-as-a-service (SaaS) offering.

TechnologyOne says its future state business is expected to grow revenue at a rate of at least 15% per annum in the coming years.

The company boasts that the quality of its SaaS revenue is very high – it's recurring in its contractual nature and it should be viewed with the very low churn rate of around 1%. It's targeting that 95% of its revenue is recurring by FY27. Total annual recurring revenue (ARR) is expected to increase to at least $500 million by FY26.

It's also expecting its profit before tax margin to increase from 31% in FY21 to at least 35% in the next few years.

Drivers of the increase of that profitability growth will be helped by the "significant" economies of scale benefits. Cost reductions will reflect the efficiencies from the transition to SaaS.

The company says it expects to double in size every five years. It's also spending heavily on research and development, which will extend its Saas platform, while delivering on its artificial intelligence and machine learning.

Aside from the potential revenue and profit growth I've already written about, TechnologyOne also says the markets it serves are "resilient". It provides "mission critical" software which is important for a company's operations. The ASX tech share has also said that its 2022 pipeline is "strong".

I think the TechnologyOne share price decline (of 23% in 2022), its international growth, and encouraging outlook in 2022 makes the business attractive to me at this lower level.

The post 2 ASX tech shares I would buy after the heavy sell-off appeared first on The Motley Fool Australia.

Inflation is on the rise, and that means interest rates are too. So where can investors turn to protect their portfolios from the sting of inflation? ASX-listed exchange-traded funds (ETFs) might be one place the average investor hasn't thought to look yet.

At the latest ASX Investor Day, two Betashares ETFs were touted as potential inflation fighters. The first is the Betashares Cloud Computing ETF (ASX: CLDD), which invests in a diversified mix of global companies in the cloud computing industry. The second is the Betashares Global Cybersecurity ETF (ASX: HACK), which invests in 41 leading companies fighting cybercrime.

Let's take a closer look at these ASX ETFs and why they could be less prone to rising prices.

Paying up for what is essential

Pricing power is a key factor when it comes to avoiding the margin crimping effects of inflation on a company. Essentially, all products are competing with each other for each dollar in a consumer's wallet.

When prices rise broadly, that competition becomes more fierce as the average person becomes more selective with where they spend their money. However, the more of a necessity a product or service is, the greater the ability to increase prices while retaining customers.

As noted at the ASX Investor Day, both cloud computing and cybersecurity are sectors that are becoming more of a necessity than a discretionary purchase. In the case of cybersecurity, this is a byproduct of the costliness of not having protection in the current era.

According to the presentation, the global cost of ransomware attacks increased an astonishing 5,700% between 2015 to 2021. Similarly, data is growing at a blistering rate of 60% per annum.

Furthermore, the presenter highlighted high margins, recurring revenues, and sticky relationships as attractive features of companies within the cloud computing ASX ETF.

What companies are in these ASX ETFs?

It is always good to remember that ETFs are a collection of companies. So, before investing it's good to get a grasp of where exactly our dollars are being allocated.

For the Betashares Cloud Computing ETF, the top 10 positions are as follows:

• Anaplan Inc (NYSE: PLAN)
• Akamai Technologies Inc (NASDAQ: AKAM)
• Mimecast Ltd (NASDAQ: MIME)
• Qualys Inc (NASDAQ: QLYS)
• Box Inc (NYSE: BOX)
• Digital Realty Trust Inc (NYSE: DLR)
• Dropbox Inc (NASDAQ: DBX)
• SPS Commerce Inc (NASDAQ: SPSC)
• Five9 Inc (NASDAQ: FIVN)
• Workday Inc (NASDAQ: WDAY)

Meanwhile, the top 10 companies making up the Betashares Global Cybersecurity ETF are:

• Cisco Systems Inc (NASDAQ: CSCO)
• Palo Alto Networks Inc (NASDAQ: PANW)
• Crowdstrike Holdings Inc (NASDAQ: CRWD)
• Zscaler Inc (NASDAQ: ZS)
• Mandiant Inc (LON: 0QZY)
• Leidos Holdings Inc (NYSE: LDOS)
• Booz Allen Hamilton Holding Co (NYSE: BAH)
• Cloudflare Inc (NYSE: NET)
• Sailpoint Technologies Holding (NYSE: SAIL)
• Akamai Technologies Inc

Considering most of these companies fall under the 'tech' stock category, it comes as no surprise that neither of these ASX-listed ETFs has fared too well so far this year. At the time of writing, HACK is down 16.2% year-to-date, while CLDD is down 30.1%.

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The 5 worst-performing ASX ETFs of the March quarter

BetaShares Crypto Innovators ETF (ASX: CRYP)

This ETF is a relatively new one on the ASX, having only started life in November last year. CRYP is designed to track a basket of companies that all deal with cryptocurrencies and the emerging crypto economy. Some of CRYP's top holdings include Riot Blockchain, Coinbase Global, and Silvergate Capital Corp. This ETF has not had a pleasant few months though. Over the quarter ending 31 March, CRYP units lost 18.3% of their value.

BetaShares Cloud Computing ETF (ASX: CLDD)

Another relative newbie to the ASX, the BetaShares Cloud Computing ETF is our next fund. CLDD began trading in February 2021. It's a fund designed to give investors access to the theme of cloud computing. Most of its holdings are US companies, which include Dropbox, Akamai Technologies, and Workday. Sadly, CLDD has also had a rough run of late, with this ETF reporting a loss of 18.6% over the quarter just passed.

BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

We can see a theme emerging with this list today as we look at another tech-based ETF in RBTZ. The name says it all with this fund, which has companies hailing from the US, Japan, and Switzerland, amongst others. With RBTZ, you'll find companies like NVIDIA Corp, Yaskawa Electric, and Upstart Holdings here. But the tech selloffs of the last few months have not spared this ETF. During the March quarter, we saw RBTZ units shed a nasty 20.68% of their value.

ETFS Ultra Long Nasdaq 100 Hedge Fund (ASX: LNAS)

This ETF is a little different. It tracks the Nasdaq 100 Index, but not in the same way an index fund does. Rather, it offers geared (or leveraged) exposure to the Nasdaq. In other words, it's designed to use borrowings to magnify the gains of the index. But, as we see now, gearing also amplifies losses. We can see this in action by looking at the Nasdaq 100 March quarter loss. While the index lost a tad over 10% over the three months to 31 March, LNAS units lost a hefty 22.58% of their value.

ETFS S&P Biotech ETF (ASX: CURE)

This biotech-themed ETF may be having a strong day so far today (up 2.73% at the time of writing) but, unfortunately, that doesn't change CURE's dreadful March quarter. In fact, this ETF takes out the top spot for the worst-performing ETFs over the quarter just gone. The fund returned a loss of 24.8% between New Year's Day and 31 March. CURE tracks a portfolio of biotech shares, mostly hailing from the US. Some of its top holdings include Moderna, Ocugen, and Iovance Biothera.

The post Here are the 5 worst-performing ASX ETFs over the March quarter appeared first on The Motley Fool Australia.

Here's what you need to know about these ETFs right now:

BetaShares Cloud Computing ETF (ASX: CLDD)

The first ETF to look at is the BetaShares Cloud Computing ETF. This ETF gives investors exposure to a group of leading global companies involved in the delivery of computing services, servers, storage, databases, networking, software, analytics and other services over the internet. Through this ETF, you'll be buying a slice of cloud-based tech companies such as Dropbox, Netflix, Shopify, and Zoom.

BetaShares Global Energy Companies ETF (ASX: FUEL)

Another ETF to look at is the BetaShares Global Energy Companies ETF. This ETF provides investors with access to some of the biggest energy companies in the world. BetaShares notes that these are larger, more geographically diversified, and more vertically integrated than Australian-listed energy companies. Among its holdings are BP, Chevron, ExxonMobil, and Royal Dutch Shell.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another ETF which could be worth checking out is the BetaShares NASDAQ 100 ETF. This exchange traded fund gives investors access to the 100 largest businesses on Wall Street's technology-focused NASDAQ index. This includes tech giants such as Amazon, Apple, Alphabet, Facebook/Meta, Microsoft, Netflix, and Nvidia.

VanEck Vectors Australian Banks ETF (ASX: MVB)

A final ETF for investors to look at is the VanEck Vectors Australian Banks ETF. This ETF allows you to own a slice of all the big four banks, the regionals, and investment bank Macquarie Group Ltd (ASX: MQG) through a single investment. And as the banks tend to pay their shareholders big dividends, this ETF is likely to offer a generous yield most years.

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ETFs allow investors to gain exposure to sectors, themes, markets, and entire countries through a single investment. This means an investor can home in on certain areas of the investment world that they're particularly bullish on.

But which ETFs could be good options for investors? Listed below are three popular ETFs to research further:

BetaShares Cloud Computing ETF (ASX: CLDD)

The first ETF to look at is the BetaShares Cloud Computing ETF. This ETF gives investors exposure to leading global companies involved in the delivery of computing services, servers, storage, databases, networking, software, analytics and other services over the internet or cloud. Through this ETF, you'll be buying a slice of companies such as Dropbox, Netflix, Shopify, and Zoom.

Betashares Global Sustainability Leaders ETF (ASX: ETHI)

Another ETF for ASX investors to research further is the Betashares Global Sustainability Leaders ETF. This popular ETF allows investors to buy a slice of large global stocks that have been identified as climate leaders. This could make it a top option if you're wanting to invest ethically. Betashares notes that the fund excludes companies that have direct or significant exposure to fossil fuels or those engaged in activities deemed inconsistent with responsible investment considerations. Among the shares included in the fund are giants such as Apple, Nvidia, Toyota, and Visa.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A final ETF for ASX investors to look at is the VanEck Vectors Video Gaming and eSports ETF. As its name implies, this ETF gives investors exposure to the booming video games market which VanEck notes comprises 2.7 billion active gamers globally. This is more than Netflix subscriptions and active Apple devices. Among the companies you'll be buying a slice of are Activision Blizzard, AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two. VanEck points out that these companies are well-placed to benefit from the increasing popularity of video games and eSports.

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Three top ETFs that you may want to look deeper into are listed below. Here's what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

If you're looking to gain exposure to the growing Asian economy, then the BetaShares Asia Technology Tigers ETF could be worth considering. This ETF gives investors access to a number of the most promising tech shares in the Asian market. These are the Apples, Googles, and Amazons of the Asia market. Among its holdings you'll find Alibaba, JD.com, Baidu, and Tencent.

BetaShares Cloud Computing ETF (ASX: CLDD)

Due to the ongoing shift to the cloud, companies with exposure to cloud computing look well-placed for growth. This could make the BetaShares Cloud Computing ETF a good option for investors looking to gain access to this theme. This popular ETF aims to track the performance of the Indxx Global Cloud Computing Index, which includes leading global companies involved in all aspects of the cloud computing market. This includes companies such as Dropbox, Netflix, Shopify, and Zoom.

iShares Global Healthcare ETF (ASX: IXJ)

Finally, investors that are interested in gaining exposure to the healthcare sector might want to look at the iShares Global Healthcare ETF. This ETF aims to provide investors with the performance of the S&P Global 1200 Healthcare Sector Index, before fees and expenses. This index has been designed to measure the performance of global biotechnology, healthcare, medical equipment and pharmaceuticals companies. This includes local healthcare giants CSL Ltd (ASX: CSL) and Ramsay Health Care Limited (ASX: RHC), and global players such as Astra Zeneca, Johnson & Johnson, Moderna, Novartis, Pfizer, and Sanofi.

The post 3 fantastic ETFs for ASX investors today appeared first on The Motley Fool Australia.

Three top ETFs that you may want to look deeper into are listed below. Here's what you need to know about them:

BetaShares Cloud Computing ETF (ASX: CLDD)

The first ETF to look at is the BetaShares Cloud Computing ETF. This ETF aims to track the performance of the Indxx Global Cloud Computing Index, which includes leading global companies involved in the delivery of computing services, servers, storage, databases, networking, software, analytics and other services over the internet. Through this ETF, you'll be buying a slice of companies that look well-placed to benefit from the ongoing shift to the cloud. This includes the likes of Dropbox, Netflix, Shopify, and Zoom.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another exchange traded fund which could be worth looking at is the BetaShares NASDAQ 100 ETF. As you might have guessed from its name, this exchange traded fund gives investors exposure to the 100 largest businesses on Wall Street's technology-focused NASDAQ index. This includes tech giants such as Amazon, Apple, Alphabet, Facebook/Meta, Microsoft, Netflix, and Nvidia. It is worth noting that there are also non-tech shares including Starbucks and PepsiCo.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF for investors to look at is the Vanguard MSCI Index International Shares ETF. This popular ETF provides investors with exposure to the world's largest listed companies. This means that rather than just investing in the Australian economy, investors can take part in the long term growth potential of international economies. Among the ~1,500 companies included in the ETF are Apple, Johnson & Johnson, JP Morgan, Nestle, and Visa.

The post 3 excellent ETFs that you need to know about appeared first on The Motley Fool Australia.

Three that could be worth getting better acquainted with next week are listed below. Here's what you need to know about them:

BetaShares Cloud Computing ETF (ASX: CLDD)

With the world rapidly moving to the cloud, companies with exposure to cloud computing look well-placed for growth over the next decade. This could make the BetaShares Cloud Computing ETF worth a look. This ETF aims to track the performance of the Indxx Global Cloud Computing Index, which includes leading global companies involved in the delivery of computing services, servers, storage, databases, networking, software, analytics and other services over the internet. Through this ETF, you'll be buying a slice of companies such as Dropbox, Netflix, Shopify, and Zoom.

BetaShares Crypto Innovators ETF (ASX: CRYP)

The BetaShares Crypto Innovators ETF could be worth looking at if you're interested in the high risk world of cryptocurrencies. The fund manager notes that the ETF allows investors to access the growth potential of the crypto economy through exposure to a portfolio of companies at the forefront of the crypto world. This includes crypto trading platforms, crypto mining and mining equipment firms, and other companies servicing crypto-markets. Among its holdings you'll find Coinbase, Silvergate, and Riot Blockchain.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF for investors to look at next week is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with easy access to the world's largest listed companies. Vanguard notes that this allows investors to take part in the long term growth potential of international economies. Among the ~1,500 companies included in the ETF are Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

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Key Points

• 2021 was a top year for ETFs, but a new report finds 2022 could be even better
• With index funds at saturation, we can expect some more exotic ETF offerings
• Investors are using ETFs in new ways, such as hedging

Last year was a great one for ASX exchange-traded funds (ETFs). As we've covered extensively here on the Fool, 2021 not only saw total funds under management in the ETF sector hit record highs. But we also saw the successful listing of a number of new ETF products. One, the BetaShares Crypto Innovators ETF (ASX: CRYP), actually broke the trading volume record for a newly-listed fund.

So with all that success under the belt, what does 2022 hold in store for ASX ETFs?

Well, a report in The Australian this week reveals that investment bank Citi has released a 'deep dive' report into the global ETF sector and its outlook for 2022.

The report finds that the global index fund market is reaching saturation point. It found the "most widely-followed indices have been replicated by ETFs". As such, the report finds that ETF providers are increasingly motivated to "expand towards more novel product approaches".

We have seen this with our own eyes on the ASX. Although 2021 welcomed many new ETFs to the market, almost none of them were index funds. Instead, the new funds extended coverage of thematic trends or select industry groups. Other 2021 ETF debuts included VanEck Vectors Global Clean Energy ETF (ASX: CLNE) and BetaShares Cloud Computing ETF (ASX: CLDD).

ETF growth on the ASX could just be getting started

The report finds that this trend is likely to continue into 2022 as investors increasingly look for diversification outside the traditional index fund structure.

Further, Citi is predicting that the high inflows we saw last year will continue. This will be driven by "the very strong returns of recent years". It also sees interest in ESG and ethical investing continuing to dominate investors' interest.

This trend, the bank believes, may continue to benefit from a tailwind of improving global standards in ethical/ESG analysis. This, the report finds, has been beset in the past by lax standards and 'greenwashing'.

Interestingly, Citi also predicts a new way in which investors (especially those on the professional side) will use ETFs. It points to a trend in the US where institutional investors employ ETFs for 'tactical' moves such as hedging. The bank reckons this will expand to all markets, including Australia.

So it looks as though the rise of ETFs on the ASX is certainly here to stay if this report is to be believed. So get ready to hear more about ASX ETFs as we move through 2022. 

The post Shopping for some new ASX ETFs in 2022? Here's what you need to know appeared first on The Motley Fool Australia.