Top 8.5 Specialty ETFs for Maximum Returns in 2022

Introduction

Looking to maximize your investment returns in 2022? Explore the top 8.5 specialty ETFs across various sectors to secure substantial annual returns. Diversify your portfolio with these high-potential ETFs.

Selecting the Right Sectors for Investment

• Investing in the right sectors is crucial for portfolio growth, as some sectors have the potential for significant returns.

• Specialty ETFs or sector ETFs are great options for investing in specific sectors, providing a diversified approach without the need to pick individual stocks.

• Building a strong foundation for a portfolio is essential, and broad index ETFs like VU (S&P 500) or VTI (Total US Stock Market) serve as excellent foundational investments.

• The video also recommends exploring a three-fund portfolio for a solid base to build upon, emphasizing the importance of a strong foundation before delving into sector-specific investments.

• The focus of the video is on the sectors of AI, healthcare, real estate, information technology, financials, and energy, with a detailed analysis of one or two ETFs within each sector.

• AI is identified as an increasingly important sector, with the AIQ (Global X Artificial Intelligence and Technology ETF) being highlighted as a strong option for investors seeking exposure to artificial intelligence.

• AIQ tracks the IndexX Artificial Intelligence and Big Data Index, with top holdings including major tech companies like Meta, Nvidia, Tesla, Microsoft, Alphabet, and Apple.

Investment Opportunities in ETFs

• The first ETF discussed has an expense ratio of 0.68%, which is higher than preferred, but it does have assets under management of 134 million. Year to date, it has shown a significant increase of 17.16%, and it includes weightings from companies outside of the United States, providing portfolio diversification.

• The second ETF, called Bots (Global X Robotics and Artificial Intelligence ETF), focuses on capitalizing on the trends of robotics and artificial intelligence. It tracks the indxx global Robotics and artificial intelligence thematic index and has shown an annual appreciation of about 9%. Despite a high expense ratio of 0.69%, it boasts substantial assets under management of 1.7 billion and a remarkable year-to-date increase of 21.6%.

• The third ETF highlighted is XLV, which is a major sector fund in healthcare with assets of over 41 billion dollars. It is considered one of the safest and most popular ETFs in the healthcare sector, making it a strong choice for portfolio inclusion.

Healthcare Sector - XLV ETF

• XLV is a healthcare ETF consisting of 60 leading U.S. stocks, including United Health Group Inc, Johnson and Johnson, and Merck & Co.

• The current price of XLV is $135.05, with a year-to-date change of -0.3%.

• XLV has an expense ratio of 0.10, making it an attractive choice for investors.

• Its impressive five-year and ten-year annual appreciation rates are at about 11.6% and 12.7% respectively, outperforming the S&P 500 and many other funds.

• The fund is strategically diversified across various healthcare industries and segments, offering consistent strong returns.

• XLV is considered as one of the top ETFs in the healthcare sector due to its strong performance and low expense ratio.

Investing in Different Sectors

• The SCH top positions include pld AMT and other unconventional real estate plays to give investors full exposures to the sector.

• Vanguard Information Technology ETF vgt has a very low expense ratio of only 0.10 and tracks the MSCI U.S investable market index Information Technology 2550.

• VGT has a 10-year appreciation of over 19.4 percent per year, with a market cap of 37.89 billion and the current price is 376.53.

• The financial select sector spdr fund XLF includes top holdings such as Warren Buffett’s Berkshire Hathaway, JPMorgan Chase and Co, and Bank of America Corp.

• Rising interest rates tend to benefit financial institutions like these that hold a lot of assets.

Investment Opportunities in ETFs and Energy Sector

• A green focused energy ETF is a promising option for investors looking into the energy sector

• Clean energy ETFs are recommended by many financial professionals due to expected significant growth in the sector

• QCLN is a clean energy ETF that tracks the NASDAQ clean Edge green energy index and focuses on companies involved in clean energy themes

• The expense ratio for QCLN is 0.58 percent, and the average appreciation over the past 10 years has been about 17.5 percent, making it an attractive option for investors

Conclusion

Dive into the top 8.5 specialty ETFs from AI to energy sectors for a strong foundation and impressive annual returns. With a focus on sectors poised for growth, these ETFs offer diversified investment opportunities for potential portfolio success in 2022.

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