Exchange Traded Funds are a type of financial security and ETF shares are traded mostly like stocks. ETF`s can be a great way to diversify your investments and they have potential to make you great return on investment while minimizing the risk as well.
Here are top 5 ETFs that we think every investor should consider:
- SPDR S&P 500 ETF Trust / Ticker: SPY
SPY is one of the oldest and most know ETFs that is traded on the US market. It takes top spots for liquidity (Trading Volume) and the fund has a whopping $318 Billion worth of assets under management. This fund mirrors the popular US index S&P 500. The index includes 500 US Large-Cap companies. S&P 500 index committee regularly updates the companies that are included and emitted from the index based on strict requirements that companies need to meet. In the last 6-month SPY has Risen around 23% and is still shows huge upside potential.
- O’Shares Global Internet Giants ETF / Ticker: OGIG
Pandemic has helped Internet-based companies expand like crazy in 2020, and if you want to get in on that expansion OGIG is an ETF for you. OGIG tracks the prices of International Internet Giant companies. It does not invest only in us market, which gives investors extra diversification and upside potential. The fund is investing in the US, Chinese, and European mostly internet-based companies. Here some of the companies that are included in OGIG portfolio: Amazon, Alibaba, Alphabet (Google), Tencent, Facebook … etc. In the last 6 months, OGIG went up by around 47% and it’s not showing signs of stopping.
- US Global Jets ETF / Ticker: JETS
One of the most hit industries by the pandemic has been the Airline industry. Prices have plummeted since march, and they have not still recovered. Considering that people will still need to travel as soon as the pandemic gets under control (which is not that far away since we already have few potential vaccines) airline stocks are trading at almost 60% discount, and they are a bargain. JETS ETF gives you the opportunity to take advantage of that. JETS invests in all-cap companies of both US and the international passenger airline industry, and they are managing around $2.3 billion worth of assets. At the moment of writing this article, the JETS is down around 30% since the start of the pandemic and there is no reason why it should not be going up to pre-pandemic levels as soon as everything gets back to normal.
- ARK Innovation ETF / Ticker: ARKK
ARKK has been one of the most successful funds this year. It has gained a stunning 115% in the last year alone. What is the secret of this fund? – innovation and disruption. ARKK is targeting bleeding-edge companies that have the potential to disrupt the whole fields that they are in. IT includes companies such as TESLA, Alibaba, Square, Slack Technologies … etc. The Fund has more than $11 billion in assets under management. Some critics might say that this ETF is not cheap right now, however, we think there is still room to grow and it’s a great time to ride the momentum that this fund has.
- Global X Robotics & Artificial Intelligence ETF / Ticker: BOTZ
Every reputable investor and analyst has been saying lately that one of the fields that will explode and change the economy in the years to come is Artificial Intelligence. AI will be adopted by most of companies in the future. Mark Cuban has said that AI will have a bigger impact than PCs and The Internet. Economists believe that AI will be adding a staggering $10 to $15 trillion to the world economy in the years to come. IF you want to be part of this revolution that is already happening and make great returns you should be looking at BOTZ ETF. This fund gives you access to companies involved in the development and production of robots or artificial intelligence. The fund has $2 billion worth of assets under management and it has risen around 41% during the last 6 months.