For the adventurous investor…

ETFs are a cheap and easy way for savers to own niche stocks. Here are some that stand out, writes Sam Benstead

Exchange-traded funds allow investors to own a slice of the stock market without paying for a fund manager. They are passive funds that are listed on the stock market and offer a huge range of options, from staples such as American firms to the downright wacky. They offer a cheap and easy way for savers to own niche investments.

Telegraph Money has picked out its favourite unusual funds that stand out from the crowd and merit the attention of adventurous investors.

HANetf Emerging Markets Internet & Ecommerce (EMQP) Internet stocks in emerging markets have performed extremely well as people shift their lives online. This £86m ETF gives investors access to the ecommerce, software and cloud computing companies of Asia, Latin America and Africa, including Chinese internet giants Alibaba and Tencent.

The fund has returned 76pc since its launch in October 2018, compared with American stocks’ 22pc and 16pc from a basket of emerging market stocks.

Lynn Hutchinson of Charles Stanley, an investment manager, said the ETF was expensive at 0.86pc a year, which is more than many actively managed funds charge, but worth it for adventurous investors.

iShares Edge MSCI World Value Factor (IWVG) This ETF is a low-cost and welldiversified fund that automatically selects companies that display “value” characteristics, such as low share prices relative to profits or company assets.

The £1.4bn fund costs just st 0.3pc a year and is packed with stocks k f from around the developed world that have strong profits, dividend yields and finances. Examples include Intel, Toyota and IT firm IBM. It yields 2.8pc.

L&G Robo Global Robotics & Automation (ROBG) For investors keen to buy technology companies without doubling up on the most famous brands, Ms Hutchinson recommended this £670m ETF. It is packed with lesser-known names such as Nvidia, the chip maker, and Blue Prism, the British software group.

She said: “Charges are high at 0.8pc, but it offers genuine exposure away from the biggest names.” The fund has gained 17pc this year.

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iShares Global Clean Energy (INRG)

This Thi £1.4bn £1 4b ETF contains ti th the world’s ld’ 30 largest clean energy firms. James McManus of Nutmeg, an investment firm, said it was a great way to add the theme to a portfolio. It costs 0.65pc and has returned 40pc this year.

Xtrackers USA Healthcare ( XSHC)

Costing only 0.12pc, this £615m fund gives investors access to 80 American healthcare companies including Johnson & Johnson, Merck and Pfizer. It has returned 3pc this year. Peter Sleep of 7IM, an investment manager, said: “As we get wealthier and older, we spend more and more on healthcare and these are some of the best and most innovative companies to benefit from that long-term trend.”