ETFs give investors easy access to a basket of stocks and specific themes. Here are the best ETFs of 2022 you should check out!
Publisher
Kai Wu, published January 19, 2022
Exchange-traded funds (ETFs) give investors easy access to specific areas of the market and reduce company-specific risk through diversification. So you can focus on the topic or trend you’re optimistic about. Here are the best ETFs for 2022 and beyond!
Clean Energy ETF
The transition from fossil fuels to clean energy is still a long way underway. Therefore, clean energy stocks as a whole should have growth prospects in the coming decades. Investors looking for growth may consider investing in clean energy ETFs such as the BMO Clean Energy Index ETF (TSX:ZCLN).
ZCLN is a global ETF that diversifies across multiple industries. Its exposure to the United States is about 37.8%, 12.4% to Denmark, 7.2% to Canada, 6.6% to Spain, 6.2% to China, 6.2% to Portugal, 5.4% to Germany, 2% to South Korea, and 2% to South Korea. 14.2% in Austria and the rest of the world. Its industry exposure includes electric utilities (21%), semiconductor equipment (18%), renewable electricity (15%), heavy electrical equipment (14%), electrical components (11%), multi-utility utilities (8%), semiconductors (5%), oil and gas refining (2%), and others (6%).
Clean energy ETFs hold about 75 securities. Its top 10 holdings account for about 53% of the fund. Its management expense ratio (MER) is 0.40%. ZCLN has only been out for about a year, so it’s not very well known. It has a net worth of approximately $57.7 million. According to Yahoo Finance, it is trading at $18.17 per unit, a discount of over 13% to its net asset value (NAV), with an average volume of 12,914. Notably, BMO Global Asset Management has given ZCLN the highest risk rating.
Technology ETFs
Technology is an area where investment must be made. It brings innovations that can change the world. At the same time, new technologies can subvert old technologies, and in the worst or best case scenario (depending on which side you are on), new technologies can make old technologies obsolete!
If you’re looking for peace of mind and capital preservation for long-term growth prospects, you should consider Invesco QQQ Trust (NASDAQ:QQQ), which includes prominent large-cap tech stocksTop holdings: Apple, Microsoft, Amazon, Tesla, Alphabet (Google), Meta Platforms (Facebook), Nvidia, etc. QQQ ETF has been listed since 1999 and is highly liquid, with net assets of about $215 billion and an average trading volume of 51.1 million.
If you can afford to take higher risks for greater growth potential, you can look into the Renaissance IPO ETF (NYSEMKT:IPO), as described on the website As such, it “aims to hold the largest, most liquid, newly listed U.S. portfolio IPO.” Each quarter, when ETFs are rebalanced, new IPOs are included and old constituents are removed. In quarterly rebalancing, the constituent stocks are weighted by the floating market capitalization, with any weight exceeding 10% capped. ”
Currently, the largest holdings in IPO ETFs are Uber (8% of the fund), Snowflake (7%), CrowdStrike (4%), Zoom Video Communications (4%), Datadog 4%, Airbnb (3%), and Palantir (3%). The ETF has a net worth of approximately $390 million. According to Yahoo Finance, it is trading at $47.72 per unit, a 13% discount to its NAV, with an average volume of nearly 137,000 units.
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