3 interesting ETFs from sectors that will rule the world in the next 10 years
Investing in ETFs is popular for its passivity. But sometimes one may want to bet on sectors that hold promising future potential. We'll look at 3 of those here today.
First Trust Cloud Computing ETF $SKYY+0.4%
The First Trust Cloud Computing ETF is a fund that focuses on cloud-related business services.
First Trust Cloud…
SKYY-Cloud computing - the proliferation of software, services and storage over the internet. It allows customers to access information and applications from virtual resources.
-Cloud security - securing cloud services against viruses, phishing attacks and other threats. Security is key to customer confidence in the cloud.
-Cloud infrastructure - the basis for operating and delivering cloud services such as data storage, servers, networks, application platforms, etc.
-Cloud management - tools for managing, monitoring and optimizing the cloud and cloud services.
- Cloud-related services such as cloud hosting and cloud outsourcing.
The fund tracks the Prime Cloud Computing Index, which covers the largest companies providing cloud services. These include leaders like Microsoft, Amazon, Intel, SAS Institute.
Overall, SKYY provides broad exposure to the fast-growing cloud computing market. According to the study, its market size is growing at 15-20% annually and is expected to reach a staggering $707 billion by 2025. Even with the pandemic, cloud services have become vital to the functioning of the digital economy and businesses.
The SKYY Fund is therefore an excellent long-term investment opportunity in a cloud services company, which will undoubtedly continue to grow in importance. This is with good diversification through an index approach that covers the entire market from a single investment.
Vanguard Information Technology ETF $VGT+2.7%
VGT is one of the world's largest funds focused on the technology sector. With approximately $50 billion under management, it provides investors with the opportunity to benefit from the growth of information technology without the need for complex stock selection.
The fund tracks the performance of the MSCI US Investable Market Information Technology 25/50 Index, which includes over 120 of the largest US technology companies. Major investments include giants such as Microsoft, Apple, Oracle, Intel, IBM, Cisco Systems and others.
The fund covers the full range of the technology sector, from hardware and chip manufacturers to software, IT services and Internet services companies. As a result, it offers investors broad exposure to the growth of the entire sector from a single investment.
It does not actively seek to outperform the market. This has the advantage of immediate reaction to market movements and, most importantly, low costs of just 0.10% per annum.
The technology sector is considered the fastest growing and most disruptive sector of the economy. IT companies are driving innovation and digitalisation in virtually all areas. VGT enables investors to benefit from the long-term growth of information technology, including trends such as cloud computing, artificial intelligence and the Internet of Things. At the core are high-quality, profitable technology companies with a global reach.
Ultimately, VGT offers a unique opportunity to participate in the growth of information technology at very low cost through a single, well-diversified investment.
Global X Robotics & Artificial Intelligence ETF $BOTZ+1.7%
This ETF just can't be missing from my list these days. This fund is focused solely on robotics and artificial intelligence, which will also be key disruptive technologies for years to come.
Covers companies across the entire value chain - manufacturers of robotic systems, sensors, AI software, cloud, etc. Uses robotic systems and AI solutions in healthcare, industry, logistics and other sectors.
The number of robots in the world is projected to double by 2030, making them much more affordable, and their spread across the economy will accelerate significantly. This will also be positive for companies in this pool. Not to mention that quite possibly other big companies like $TSLA+0.6% will come with their AI and robots.
Global X Robotics &…
BOTZThere's a better chance that robotics and AI will actually be disruptive and deliver high profits than some of the speculative technologies that, say, the more generalist $ARKK+1.2% is betting on. The BOTZ fund is more focused on tangible technologies and applications.
The result should be a higher number of reliable and profitable companies that will benefit from the adoption of robots and AI. With fewer risks than bioengineering or blockchain, for example. However, it is up to everyone to decide which technology will be the future breakthrough.
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 the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.
