Top 5 ETFs To Trade In 2022
We’re kicking off week 3 of 2022 with a look at the most popular Exchange Traded Funds (ETFs) for the coming 12 months. After that, we’ll go over the trading events that you can’t afford to miss this week.
ETFs to look out for this year
ETFs allow investors to buy a collection of stocks or other assets in a single fund with (usually) low expenses, and they trade on exchanges like stocks. ETFs have become popular investments for both active and passive investors alike as they provide low-cost access to a variety of asset classes, industry sectors, and international markets.
Let’s show you some of our faves for 2022.
#1 Net lease Corporation Real Estate ETF (NETL)
A net lease agreement is a long-term agreement in which the lessee is responsible for most of or all the property expenses. Real-estate investment trusts that are focused on net leases can offer relatively predictable sources of income.
NETL which launched back in 2019, had a positive 2021. It grew 22% last year and carries an expense ratio of 0.60%. That translates to annual expenses of $6 for every $1,000 invested.
NETL, 12-months
Source: Yahoo Finance
#2 SPDR S&P Dividend ETF (SDY)
SDY tracks the returns of the S&P High Yield Dividend Aristocrats Index. It contains household names, like AT&T, Exxon Mobil, and Chevron, to name a few. ETF.com rates the SDY ETF as a 5 out of 5… If that’s anything to go by!
SDY manages over $20 billion and posted highly-positive gains of 22% in 2021, while also delivering a 2.64% yield.
SDY , 12-months
Source: Yahoo Finance
#3 Global X NASDAQ 100 Covered Call ETF (QYLD)
Covered-call funds sell “call” options, which give owners the right to purchase a stock at a set price within a certain period. Confused? Don’t worry!
The term “covered” refers to the fact that the fund owns the underlying stocks that the options represent. So, investment in this ETF acts as a sort of insurance, particularly during volatile markets. (Never a bad option!)
QYLD traded a little bit on the downside in 2021 (2.4%), but it has a distribution yield of 11.4% with an expense ratio of 0.60%.
QYLD, 12-months
Source: Yahoo Finance
#4 TD Global Technology Leaders Index ETF (TEC.TO)
This popular ETF, created back in 2019, contains a mixture of large-cap tech and mid-cap tech stocks that we all know and love. Some of its largest holdings include Apple, Microsoft, and Tesla. But the real potential lies in those mid-caps, where price appreciation could really hit some nice levels.
The ETF only jumped 19% in 2021, as the global tech sector saw a bit of a correction. As a result, big tech stocks are probably slightly under-priced at the moment, looking ahead to the inevitable tech advances over the next few years.
TEC.TO, 12-months
Source: Yahoo Finance
#5 iShares S&P/TSX Capped REIT Index ETF (XRE.TO)
Another real-estate ETF makes up our final ETF to look out for this year. As mentioned, real estate is a stable asset class that gives you regular cash flow through rent and tends to appreciate in value… Maybe there’s something in that saying, “safe as houses”?
REIT stands for Real-Estate Investment Fund, and the Greater Toronto Area is full of them. You might say they’re hot property! iShares S&P/TSX Capped REIT Index ETF has exposure to 20 REITs that have a diverse portfolio of residential, commercial, industrial, healthcare, and retail properties.
Last year was a bit of a recovery one for real-estate. Despite that, XRE.TO posted gains of 27%, outperforming all other ETFs on our list.
XRE.TO, 12-months
Source: Yahoo Finance
What do you think of our list?
Did we miss something? Which ETFs will you be trading this year? Let us know by tweeting us at @_contentworks; and if you’re looking for regular and insightful financial marketing content, please follow us!
What’s on the trading agenda week commencing 17.01.22?
A busy week lies ahead for the currency markets. Here are all of the top events to take note of.
Monday
● CNY — GDP Growth Rate YoY (Q4)
Tuesday
● JPY — BoJ Interest Rate Decision; BoJ Quarterly Outlook Report
● GBP — Employment Change (OCT); Unemployment Rate (NOV)
Wednesday
● AUD — Westpac Consumer Confidence Index (JAN)
● EUR — Germany Inflation Rate YoY Final (DEC);
● GBP — Core Inflation Rate YoY (DEC); Inflation Rate YoY (DEC)
● CAD — Core Inflation Rate YoY (DEC); Inflation Rate YoY (DEC)
Thursday
● AUD — Employment Change (DEC); Unemployment Rate (DEC)
Friday
● JPY — Inflation Rate YoY (DEC)
Here at Contentworks we closely follow market movements and prep content that we think your traders would love to read. Let’s get you started right here.
Speak soon!
The Contentworks team
