Top exchange-traded funds of 2021
Exchange-traded funds (ETFs) have seen a remarkable surge in their popularity. They enable the investors to rapidly own a diversified set of securities, such as stocks at a low price. ETFs also help the investors get a unique exposure to certain market areas. Even for a newbie investor, investing in an ETF will be straightforward. These funds are the top ETFs of 2021.
SPDR S&P 500 ETF (SPY)
SPY has been one of the top ETFs and is supposed to remain a valuable contender in the future. With $360 billion to its name, it is the single largest ETF by assets under management.
Invesco QQQ Trust (QQQ)
Invesco QQQ Trust owns just non-financial Nasdaq stocks. This makes it a tech-heavy fund associated with top names that you may already be familiar with. Its 2020 performance showed a price rise of 48.4 percent, and Invesco has a decent expense ratio of 0.2 percent. This fund is indeed one of the top ETFs of 2021.
Vanguard S&P 500 ETF (VOO)
It tracks the S&P 500 and offers the investors a diversified portfolio of some of the country’s top firms.
Ark Genomic Revolution ETF (ARKG)
ARKG is an actively managed fund, implying a higher expense ratio than all the other passively managed ETFs on this list. It will cost you about 0.75% per year. Ark Genomic Revolution primarily invests in high-reward, but high-risk biotechnology and health care brands, such as the ones involved in CRISPR gene-editing, agricultural biology, and stem cells. It is managed by Cathie Wood, one of the most prominent fund managers, and has returned a compounded value of more than 40.3% in the last five years.