These vehicles provide exposure to a basket of investments in one fell swoop. That’s why they’re becoming increasingly popular, with thousands of options available.

Here are two that I think are worth considering for income and growth in a SIPP portfolio.

Investing in the property market

First up is iShares MSCI Target UK Real Estate ETF (LSE: UKRE). This fund is invested in UK real estate investment trusts (REITs), property companies and bonds.

It currently has around 30 holdings, including Segro and Land Securities from the FTSE 100. Another one is Londonmetric Property, which has a significant focus on logistics and urban warehouses. Its occupiers include Tesco, Amazon, and Primark.

One risk here is that REITs often carry higher levels of debt (to fund property purchases), which is problematic when interest rates are high.

REITs are legally obliged to pay a minimum of 90% of their annual rental profits out in dividends. As borrowing costs rise, they can’t so easily retain earnings to reduce debt or reinforce their balance sheets.

This pressure explains the ETF’s poor performance (down 15% in five years).

However, one upshot of the recent weakness is that property-related dividend yields are higher. Right now, the ETF’s yield is 7%. No payout is guranteed, of course, but that looks very attractive to me.

Looking ahead, interest rates are forecast to keep falling, suggesting that the property market might be over the worst. Therefore, investors could also see some healthy share price gains as the market warms up again to REITs.

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Adding a bit of zip

Next, I think any ETF that tracks the Nasdaq 100 index — such as iShares NASDAQ 100 ETF (LSE: CNX1) — is worth considering right now. Following the recent stock market sell-off, this tech-heavy index is around 12% off its February high.

The chief culprit for this fall has been President Trump’s on-off tariff policies. As well as causing massive uncertainty and volatility, they also have the potential to trigger a spike in inflation and even a worldwide recession. These are key risks right now.

It’s worth remembering though that tech advancements in cloud computing, electric vehicles, artificial intelligence and space rockets continued despite the 2008 financial crisis and Covid pandemic. I’m pretty certain technological innovation will also outlast Trump’s executive orders and announcements.

Longer term, the digital revolution is likely to speed up rather than slow down. The Nasdaq 100 is made up of the largest 100 non-financials listed on the Nasdaq exchange, including all the tech giants like Microsoft, Amazon, Nvidia, and Meta Platforms. But there are also up-and-coming tech names, including Palantir and MercadoLibre, as well as pharma giants Vertex Pharmaceuticals and Amgen.

Let’s face it, the next wave of world-changing technologies — including quantum computing, humanoid robots, and the metaverse — probably aren’t going to be heavily represented in the FTSE 350. But many pioneering firms building the future will very likely be found within the tech-driven Nasdaq 100.

Therefore, I reckon this ETF is well worth a closer look for a SIPP for the next decade and beyond.

The post 2 top ETFs to consider for a SIPP in May appeared first on The Motley Fool UK.

Thankfully, I did have some dry powder in my Stocks and Shares ISA after repositioning my portfolio in the weeks and months before. I sold shares in Diageo and Greggs, both challenged by extremely weak consumer spending, along with a couple of disappointing small-caps.

Again though, this wasn’t large enough to buy every single bargain I saw popping up after President Trump’s tariffs announcement caused utter carnage.

At one point, Google parent Alphabet was trading at just 14 times forecast earnings for 2026, while Amazon stock was cheaper than it had been since the 2007/08 market crash. They both still look good value to me, as do some other tech shares.

Buying the basket

Fortunately, exchange-traded funds (ETFs) or investment trusts can be great vehicles to solve this problem. In one fell swoop, investors like myself can buy into a broad theme, sector or index. They offer instant diversification across different stocks.

Some other opportunities I saw opening up at the start of April included FTSE 100 mining stocks like Glencore and Fresnillo, the Mexican gold and silver producer. But instead of buying them individually, I added to my holding in BlackRock World Mining Trust. This gives wide-ranging exposure to copper and gold production, and much else.

Similarly, instead of buying both Amazon and Alphabet stock, I opted for a Nasdaq 100 index ETF. There are a few of these about, including iShares NASDAQ 100 UCITS ETF (LSE: CNX1), but they all track the performance of the 100 largest non-financial stocks listed on the Nasdaq exchange.

Both Alphabet and Amazon are in the top 10 holdings, along with Apple and Nvidia, which have also sold off heavily lately.

Top 10 holdings (as of April 2025)

More volatility ahead

The Nasdaq 100 had fallen 21% inside two months when I invested. As I write, the index remains nearly 18% off its recent high.

Yet that doesn’t mean the index can’t head lower in the coming months. There remains an incredible amount of uncertainty around global trade and tariffs. With Q1 earnings season upon us, this is sure to create further volatility as companies start flagging up operational headaches and adjust/withdraw guidance.

Also, some fear the generative artificial intelligence (AI) boom that has driven the market higher in recent years is about to unwind. Chipmakers are starting to face the reality that they can’t sell many of their products to Chinese customers due to export restrictions.

For example, Nvidia’s expecting to take a $5.5bn hit in the first quarter of its current fiscal year (which ends in late April). While this will have a relatively small financial impact, it’s still breeding uncertainty.

Tech revolution

Over time term though, I think the Nasdaq 100 will recover lost ground and power much higher.

It holds most of the best global tech companies, offering my portfolio exposure to multiple existing mega-trends (AI, cybersecurity, e-commerce, cloud computing etc) and likely future ones (quantum computing).

If the market takes another leg down, I will add to this ETF.

The post 1 stock market ETF I’ve been buying during the sell-off appeared first on The Motley Fool UK.

One revolutionary technology that has fascinated investors in 2023 is artificial intelligence (AI). Just two months after being released, ChatGPT, the popular chatbot from OpenAI, reached 100m monthly active users.

This has led some well-informed tech investors to predict that the technology could be bigger than the internet and smartphone.

Here, I’m going to look at two top ETFs that gives investors a chance to invest in AI.

Nasdaq 100

First, I have to go with the Nasdaq 100. The index features 100 of the largest non-financial companies listed on the Nasdaq exchange.

One popular ETF that tracks this cohort of stocks is the iShares NASDAQ 100 UCITS ETF (LSE:CNX1).

Following a 33% plunge last year, this index has been the hands-down winner of 2023. It’s up 37% year to date, driven by its high-calibre collection of AI stocks that includes Nvidia (up 204%), Tesla (up 131%), and Google parent Alphabet (up 47%).

Now, the risk here is that this has left the index looking quite expensive. It’s currently trading on a forward-looking P/E ratio of 26, which is pretty pricey and adds risk.

However, the world-class quality of the stocks that make up this index means it’s rarely cheap. And investors really get the cream of the crop in the AI world with this investment.

For example, Microsoft is the second largest stock with a 9.5% weighting. The tech giant invested $10bn in OpenAI earlier this year for a minimum 49% stake, placing it at the very heart of the AI revolution.

But the Nasdaq 100 also contains smaller firms that are doing interesting things with AI. One is Duolingo, the world’s largest digital language app. Its new learning features are powered by its in-house AI technology combined with ChatGPT.

Duolingo stock is up 133% this year as the firm’s paid subscriber numbers and revenue continue to skyrocket.

If I didn’t already have large exposure to this index, I’d invest in it today to hold for the next decade.

Cybersecurity

Next, I think it’s worth highlighting the L&G Cyber Security UCITS ETF (LSE: ISPY).

Admittedly, this isn’t a pure AI ETF. But most other funds focused solely on the technology are largely invested in those Nasdaq AI giants I’ve already mentioned. So, I’d take a slightly different angle here, opting for cybersecurity.

According to Allied Market Research, the AI market for cybersecurity is estimated to grow from $19.2bn in 2022 to $154.8bn in 2032. So the 40 stocks in this ETF give investors exposure to this potentially explosive growth.

The fund’s top holdings include Crowdstrike and London-listed Darktrace. Both firms have invested significantly in AI.

Crowdstrike’s Falcon platform uses machine learning and AI algorithms to predict, detect, and defend its 23,000 business customers from cyber threats. Its AI systems analyse over 2trn bits of data daily.

One risk with this ETF is that many cybersecurity firms invest heavily to drive further growth. That means many of them run operating losses, which can cause share price volatility when markets enter risk-off mode.

That said, I’m intending to hold this thematic ETF in my portfolio for years, so short-term volatility doesn’t worry me.

The post 2 top ETFs for the artificial intelligence revolution appeared first on The Motley Fool UK.

Here, I’m going to highlight three ETFs I’d buy and hold for a decade.

The digital age

Technology is playing an increasingly crucial role in almost every area of our lives. This digitisation of the world is set to accelerate over the coming years.

I think one great way to gain exposure to this is through the iShares NASDAQ 100 UCITS ETF (LSE: CNX1). This tracks 100 tech shares listed on the Nasdaq stock exchange.

The index is down 20% over the last 18 months, so I’m looking to invest in it myself soon.

One risk worth noting is portfolio concentration, with a quarter of it invested in just two stocks. Were either (or both) of these to suffer a setback, then the whole ETF could underperform.

However, over a decade-long period, I’d expect many holdings to march towards much higher valuations as technology permeates almost every industry.

Prevalent themes in this ETF include cloud computing, artificial intelligence, payments, and digital advertising.

Ongoing charges are 0.33% per year.

Alternative energy

I also like the iShares Global Clean Energy ETF. This fund offers a way to invest in the global clean energy trend.

It is invested in 97 stocks and top holdings include First Solar, Enphase Energy, and offshore wind farm giant Ørsted.

Global investments into renewable energy reached a new record high of $495bn last year. It’s almost certain that figure will increase as the energy transition picks up.

One thing worth highlighting is that investor sentiment around green technology does wax and wane. That means any returns are unlikely to be consistent from one year to the next.

Still, if I had spare cash, I’d invest in this ETF. Ongoing fees are 0.65% per year.

Cat and mouse

Another ETF that I rate highly is the L&G Cyber Security ETF (LSE: ISPY). As the name suggests, this fund tracks a basket of companies active in the cybersecurity industry.

This is an area poised for major growth in the years ahead, as cybercrime is expected to cost the world around $10.5trn annually by 2025. This means cybersecurity has quickly become a necessity for all companies, organisations, and governments.

This ETF holds 43 stocks and has a 0.69% ongoing charge.

Cybersecurity threats are constantly changing as the technologies that hackers use get ever more sophisticated. Companies need to constantly innovate to stay on top of this evolving landscape. It’s like a never-ending game of cat and mouse.

This ETF provides broad exposure to the whole industry

One risk is that the holdings can be quite volatile. For instance, Cloudflare stock went up 73% in 2021, before plummeting 65% last year.

However, this ETF has delivered an excellent 155% return since launching in 2015. And I think the future looks equally bright.

The post 3 ETFs I’d buy and hold for 10 years appeared first on The Motley Fool UK.