Proprietary Data Insights Financial Pros Top 10 ETF Searches This Week
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ETF |
Financial Pros Top 10 ETF Searches This Week |
Financial Pros Top 10 ETF Searches This Week There is an old saying on Wall Street: “Everyone is a genius in a bull market.” However, with the stocks taking a turn for the worse in 2022, it’s become a true stock pickers market. For example, if you’ve been long individual oil and gas stocks like Occidental Petroleum (OXY) and Marathon Petroleum (MRO) from the beginning of the year— you are having one heck of a year. On the other hand, several stocks which sparked the bull market in 2020 and 2021 seem dead in the water. Firms like Roblox (RBLX), Shopify (SHOP), and even Netflix (NFLX) are down more than 60% so far in 2022. And that’s why diversification is critical if you want to have long-term success in the stock market. Of course, you can try to build your portfolio and test your luck. Or you could do what most savvy investors do and invest in ETFs. Today we’ll look at ten of the most popular ETFs amongst financial pros for this week. These ETFs were the most actively searched and form the basis of where we expect the majority of money flows. We broke them down into types of ETFs: Index Funds, Leveraged Funds, Commodity ETFs, and Actively Managed Funds. Index Funds
Thoughts on the Index Funds Many of the major index funds carry incredibly low fees. Do not accept anything higher than 0.25%. Many brokers will have their own versions of index funds that track similar or the same components for lower costs. Make sure you search around for the one that suits you best. For those that actively invest in the market, consider using the SPY as a base investment, moving money in and out of individual investments back to and from the SPY. It’s a great way to stay invested in the market. Conversely, the TLT is a great way to buy longer-dated U.S. treasury bonds. However, you can also use its inverse, the TBT to bet against them. Leveraged ETFs
Thoughts on Leveraged ETFs Leveraged products are good short to medium-term holdings. Ones with 3x leverage often do not hold stocks and therefore carry additional risk. One way to use these funds is for index purchases on major pullbacks, such as what we saw in 2020. This can help you get more leverage out of your capital. Commodity ETFsYou don’t need a futures account to gain access to some of the most popular products. In fact, several ETFs have been designed to track them. Below, you’ll find some of the most popular ones.
Thoughts on the Index Funds GLD and SLV are backed by physical assets. Many of the energy names like USO for oil and UNG for natural gas are not. That means the USO and UNG will lose value over time unless the price of those commodities continues to rise. Actively Managed ETFs
Although it is an actively managed ETF, the top holdings currently include Tesla (TSLA), Zoom Video Communications (ZM), Teladoc Health (TDOC), Roku (ROKU), and Coinbase (COIN). Thoughts on Actively Managed ETFs You’d better believe in the fund manager to invest in these funds because you may end up paying some serious fees. Thankfully, Woods’ fund only costs 0.79%. She has some interesting theories about inflation, so if you want to go with her fund, do some digging before entering a position. Bottom LineETFs come in all shapes and sizes. But what makes the ten mentioned above attractive is that they offer a chance to gain exposure to some of the most important themes in the market quickly and easily. Not only are they highly liquid, but they also offer options as. That means you can use them as tools for speculating and hedging. And while these ten mentioned are among the most popularly traded, there are over 8K ETFs investors can choose from. Make sure you read the prospectus and understand the fees associated with them before you invest. |
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