Buy Hold Sell: Hot themes, cold calls - 6 thematic ETFs rated

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Episode Summary

1 - Vanguard Global Technology Index ETF (ASX: VTEK)

Adam Dawes' rating: BUY

• His verdict: Tech is at the centre of every portfolio and this is a nimble way to play it, but don't set and forget.
• What he said: "You can't go a day without talking about AI. Tech is definitely the centrepiece for any client's portfolio."

Andrew Wielandt's rating: BUY

• His verdict: A great thematic satellite play, but be aware that  Nvidia and Apple are doing most of the heavy lifting.
• What he said: "Cool name and cool product. Just got to be aware - it's about 14% Nvidia, 12% Apple. So if those names aren't working, it's hard to see this one working."

"These are satellites. You've got to be fleet of foot when it's moving, but when it's not, you've got to move on."

2 - Global X Semiconductor ETF (ASX: SEMI)

Andrew Wielandt's rating: HOLD

• His verdict: The theme is real but the volatility is extreme. Not an ETF for the faint-hearted.
• What he said: "SK Hynix, Samsung - two stocks make up 60% of that index. It can move very, very quickly."

Adam Dawes' rating: HOLD 

• His verdict: If you caught the wave early, now is the time to take some money off the table.
• What he said: "It's a hold at best, but closer to a sell from me. It's too volatile. It's very wild and it's high-edge, white knuckle stuff."
  
  
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3 - Global X S&P Biotech ETF (ASX: CURE)

Adam Dawes' rating: HOLD

• His verdict: Biotech is a binary outcome - it either works or it doesn't. 
• What he said: "It either works and it goes up, or it doesn't work and the stock goes down. You should know what you're investing in. I don't, and I don't touch it."

Andrew Wielandt's rating: BUY

• His verdict: AI is compressing drug development timelines and big pharma needs to replenish its pipeline. Ride the wave, but know when to get out.
• What he said: "A lot of these cashed up pharmaceutical companies have got products coming off patent soon. They need to find these up and coming mid companies to replace the patents that are running off."
  
  
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4 - Global X 21Shares Bitcoin ETF (CBOE: EBTC)

Andrew Wielandt's rating: SELL

• His verdict: Bought as a hedge but has performed like the opposite, it's down 50% in a year and range-bound. 
• What he said: "Until we get some clarity around whether it's going to break out of that range, I wouldn't be touching it. I don't think the crypto moons are aligning."

Adam Dawes' rating: HOLD

• His verdict: Cap it at 2.5% for clients who want the exposure but don't expect much more than that.
• What he said: "I wouldn't go any further than two and a half percent. It's a hold at best, but it does serve a part of a portfolio if a client wants that side of it."
  
  
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5 - Betashares S&P/ASX Australian Technology ETF (ASX: ATEC)

Adam Dawes' rating: BUY

• His verdict: Australia's tech sector is small, but this is a smart way to get broad exposure without picking winners.
• What he said: "It's got around 10-11% in Computershare, which has done really, really well - it's a beast. But you have to ask yourself: is Computershare really a tech company? And if you already hold it in your portfolio, you've got double exposure."

Andrew Wielandt's rating: SELL

• His verdict: Governance concerns and better global alternatives make this a pass.
• What he said: "I think it's a sell. Some of the names in there I'm troubled with - not only on an investment piece, but on some of the governance practices as well. I'd just buy NDQ or IVV or the hedged versions thereof."
  
  
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6 - Vanguard Australian Property Securities Index ETF (ASX: VAP)

Andrew Wielandt's rating: BUY 

• His verdict: A simple way to get diversified property exposure, although Goodman Group is so dominant in the fund, you could almost just buy the stock directly.
• What he said: "Rather than trying to work out should I buy Dexus versus Charter Hall versus Stockland - why wouldn't you just buy VAP?

"Wearing my passive hat, it's a buy. But if I was active, it is a bit snoozy."

• His verdict: If interest rates have peaked, REITs historically outperform by 30% and VAP is the easiest way to play that macro call.
• What he said: "For lower balance clients, it's a fantastic way to play that macro theme of interest rates potentially stopping and then falling.
  
  
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