This low-cost growth share and exchange-traded fund (ETF) have been brilliant buys during the past decade. I expect them to continue delivering stunning returns for the foreseeable future.
Here’s why I think they’re worth a close look by savvy long-term investors.
Bank of Georgia Group
Bank of Georgia‘s (LSE:BGEO) delivered spectacular earnings growth during the past decade. As a consequence, it’s share price has risen an incredible 462% since this point in 2014.
Yet the bank isn’t just an attractive growth share in my book. It also offers plenty for value and dividend investors to get their teeth into.
For 2024, the company trades on a forward price-to-earnings (P/E) ratio of 3.3 times. This is built on predictions of an 37% bottom-line surge this year. And the dividend yield on Bank of Georgia shares is a meaty 7.1%.
I can understand why the bank’s so cheap right now. Rising political tension in the country could potentially impact earnings growth at cyclical firms like these.
However, the pace at which financial services demand is rising in its Georgian and Armenian emerging markets remains hard to ignore. The bank’s lending rose 18% between April and June, latest financials showed, which helped to thrust pre-tax profit 15% higher.
Georgia’s economy has been one of the fastest growing on the planet in recent decades. And the outlook here remains pretty encouraging, in spite of the current political crisis. Last month, the Asian Development Bank raised its GDP growth forecasts to 7% for 2024, up from the 5% previously estimated.
The political backdrop means there may be bumps along the way. Indeed, Bank of Georgia’s share price may experience volatility following next week’s general election. But I believe it’s still a top growth share to consider right now.
iShares S&P 500 Information Technology Sector ETF
Past performance is no guarantee of future returns. But the ripping performance of the iShares S&P 500 Information Technology Sector ETF (LSE:IUIT) suggests it’s also worth a close look today.
Since its inception in 2015, this fund’s delivered a whopping average annual return of 23.3%. To put that into context, it’s better than the 13.9% yearly average return the S&P 500 has produced in that time. It’s also more than triple the FTSE 100‘s corresponding return of 6.9%.
As its name suggests, the fund provides targeted exposure to US technology stocks. We’re talking about global mammoths like Nvidia, Apple, Microsoft, and the rest of the so-called Magnificent Seven.
In total, this ETF has holdings in 69 different companies. So while the sector’s high risk, this diversified approach helps me to reduce the dangers I face (for the record, I currently own the fund in my Self-Invested Personal Pension (SIPP)).
Alongside artificial intelligence (AI), it gives me an opportunity to profit from multiple tech trends like the growth of the metaverse, green technologies, quantum computing, and the eventual rollout of 6G.
The ETF’s cyclical nature means I could experience disappointing returns when economic growth cools. Still, I’m optimistic it will continue delivering big returns over the long haul.
