Image source: Getty Images
This low-cost growth stock and exchange-traded fund (ETF) has been the best buy of the past decade. I expect them to continue to deliver good returns for the foreseeable future.
That's why I think they're worth a closer look by experienced long-term investors.
Bank of Georgia Group
Bank of Georgia's (LSE:BGEO) has delivered impressive earnings growth over the past decade. As a result, its share price has risen a staggering 462% since this point in 2014.
However the bank is just not an attractive growth share in my book. It also offers plenty of value and dividend funds to get their teeth into.
In 2024, the company trades at a forward earnings ratio (P/E) of 3.3 times. This is based on forecasts of 37% surgeries this year. This company Bank of Georgia paid a dividend of 7.1 %.
I understand why the bank is so cheap right now. The rise in political conflicts in the country may have an impact on the income growth of cycling firms such as these.
However, the speed at which the financial markets in the emerging markets of Georgia and Armenia are rising remains difficult to ignore. Bank lending rose 18% between April and June, the latest financial report said, helping boost pre-tax profits by 15%.
Georgia's economy has been one of the fastest growing in the world in recent decades. And the outlook here remains very encouraging, despite the current political crisis. Last month, the Asian Development Bank raised its GDP growth forecast to 7% in 2024, from 5% previously thought.
The political climate means there may be bumps in the road. Indeed, Bank of Georgia's share price may be volatile following next week's general election. But I believe it is still a high growth share worth considering right now.
iShares S&P 500 Information Technology Sector ETF
Past performance is no guarantee of future returns. But the performance of the ripping of the iShares S&P 500 Information Technology Sector ETF (LSE:IUIT) suggests it's worth a closer look today.
Since its inception in 2015, the fund has delivered a massive annual return of 23.3%. To put that in context, it's better than the annual average of 13.9%. S&P 500 produced at that time. That's right too more than three times i FTSE 100a similar return of 6.9%.
As its name suggests, the fund provides targeted exposure to US technology stocks. We're talking about mammoths all over the world Nvidia, an apple, Microsoftand others called the Magnificent Seven.
In total, this ETF holds shares in 69 different companies. So even though the sector is high risk, this diversified approach helps me to reduce the risks I face (for the record, I currently hold a fund in my SIPP).
Along with Artificial Intelligence (AI), it gives me the opportunity to benefit from many technological trends such as the growth of the metaverse, green technology, quantum computing, and the eventual release of 6G.
ETF rotation means I can experience disappointing returns when economic growth slows. However, I am confident that it will continue to bring great benefits in the long run.
Source link
