Best ETFs to Watch in 2021
Explore the top ETFs of 2021, including the largest, most liquid funds like SPY and innovative options like ARKG. This guide helps investors identify diversified and high-growth opportunities in various market sectors, suitable for both beginners and seasoned investors. Understand key metrics, performance, and risk factors to make informed investment choices in today’s dynamic financial landscape.
Best Exchange-Traded Funds in 2021
Exchange-Traded Funds (ETFs) have gained immense popularity for their simplicity and diversification benefits. They let investors efficiently own a broad mix of securities like stocks at a low cost, providing exposure to specific market sectors. For newcomers, investing in ETFs is straightforward and accessible. Here’s a list of the top ETFs of 2021 to consider for your portfolio.
SPDR S&P 500 ETF (SPY)
SPY remains a leading ETF with $360 billion in assets, making it the largest in the world. It offers high liquidity, with over 74 million shares traded daily, and has a minimal expense ratio of 0.09%. This ETF provides an easy way to invest in major US companies with stability and transparency.
Invesco QQQ Trust (QQQ)
This ETF focuses exclusively on non-financial Nasdaq-listed stocks, mainly in the tech sector. Notable for its 48.4% gain in 2020, it features big names in technology. With a modest expense ratio of 0.2%, QQQ remains a top choice for investors looking to tap into the tech industry's growth.
Vanguard S&P 500 ETF (VOO)
Tracking the S&P 500, VOO offers broad diversification across leading U.S. companies. Launched in 2010, it boasts assets in the hundreds of billions and a very low expense ratio of 0.03%. In 2020, it gained 18.3%, reflecting overall market performance.Ark Genomic Revolution ETF (ARKG)
Managed actively with a 0.75% annual fee, ARKG invests in innovative biotech and healthcare firms involved in gene editing, agriculture biology, and regenerative medicine. Helmed by Cathie Wood, it has achieved over 40.3% compound growth in five years, emphasizing high risk and potential high reward.
