These are the ETFs that let you invest in the biggest trends of the day
Investors are basically divided into two camps. Those who are betting on certainty and longevity and those who are trying to grab a growth opportunity. Seeing opportunity in the sector may not be that difficult. Finding the right representative is. And that's exactly what ETFs do!
Many investors see these opportunities in sectors or trends, and the companies that provide ETFs are going after them. They compose passive and active funds that try their best to cover the entire trend. And we take a look at a few of them!
AI
The first trend can't be anything other than probably the most talked about technology at the moment - artificial intelligence. We can find many ETFs for this trend, but I'd like to focus on the following two.
ARK Innovation ETF $ARKK+1.1%
This ETF from ARK Invest doesn't invest purely in AI, but invests in companies that focus on advanced technology in general. And that includes just artificial intelligence, robotics. Then there's also genomics and fintech. His main holdings include Tesla, Roku and Zoom.
In recent years, it has shown high annual returns, but also high volatility. Fund manager Cathie Wood is known for her positive vision regarding technological innovation. Her approach is based on a deep analysis of the disruptive potential of companies.
ARK Innovation ETF
ARKKGlobal X Robotics & Artificial Intelligence ETF $BOTZ-0.5%
BOTZ is one of the largest ETFs focused on the robotics and artificial intelligence sector. The ETF tracks the ROBO Global Robotics and Automation Index, which includes companies involved in robotics, automation, artificial intelligence and big data analytics.
Major holdings include big tech players like Nvidia, Intel, Microsoft, ABB, iRobot and many more. It focuses on companies that are reducing costs and increasing efficiency through robotics and artificial intelligence.
The number of holdings is spread globally, with 60% in North America, 20% in Europe and the rest in Asia and elsewhere. This provides broad geographic exposure to the industry.
Management fees are relatively low, 0.68% per annum. It is traded on the New York Stock Exchange.
Global X Robotics &…
BOTZClimate change and ecology
We can also find ETFs focused on planet and climate protection, which is undoubtedly one of the other megatrends.
iShares Global Clean Energy ETF $ICLN-0.6%
It tracks the S&P Global Clean Energy Index, which includes companies across the entire clean energy supply chain, such as wind and solar, batteries, carbon capture, etc.
Major holdings include companies such as Enphase Energy, SMA Solar, NextEra Energy Partners, Vestas Wind Systems and First Solar.
Invesco Solar ETF $TAN-1.7%
Focuses primarily on solar energy companies, including solar panel manufacturers, battery manufacturers, equipment manufacturers, solar energy projects, etc. Major holdings include Enphase Energy, SolarEdge Technologies, Sunrun First Solar.
Both of these ETFs provide an easy way to invest in the fast-growing renewable energy sector that will be key to the transition to a low-carbon economy. They offer diversified exposure to a large number of companies in this space.
Demographic changes
Did you expect the next trend to be space exploration or perhaps quantum computers? Wrong! A very important trend is something much more boring at first glance... aging populations and demographic changes.
iShares Global Healthcare ETF $IXJ+0.0%
Tracks the MSCI World Health Care Index, which includes large global healthcare companies like Johnson & Johnson, Pfizer, Roche, etc.
It focuses on companies that can benefit from an aging population and growing demand for healthcare. Major sectors include pharmaceutical companies, medical device manufacturers, laboratories, medical supplies distributors, etc.
iShares Global…
IXJiShares Global Aging Population ETF $AGNG-0.3%
Tracks the S&P Global Aging Population Index, which includes companies in sectors that can benefit from the increasing average age of the population. Major sectors include pharmaceutical companies, medical device manufacturers, entertainment, travel and hospitality companies, etc.
AGNG is a newer ETF that carries elements of both thematic and sector investing. Over the past 5 years, it has delivered solid annual returns even with lower volatility.
Global X Aging…
AGNGWhat is your favorite megatrend? Do you invest in it? And through ETFs, or do you pick individual companies yourself?
Disclaimer: This is by no means an investment recommendation. This is purely my summary and analysis based on data from the internet and other sources. Investing in financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.
