Top exchange-traded funds of 2021

Exchange-traded funds (ETFs) have seen a remarkable surge in their popularity. They enable the investors to rapidly own a diversified set of securities, such as stocks at a low price. ETFs also help the investors get a unique exposure to certain market areas. Even for a newbie investor, investing in an ETF will be straightforward. These funds are the top ETFs of 2021.

SPDR S&P 500 ETF (SPY)
SPY has been one of the top ETFs and is supposed to remain a valuable contender in the future. With $360 billion to its name, it is the single largest ETF by assets under management. SPY is exceptionally liquid, which is a pivotal but often an overlooked aspect of ETFs. There are over 74 million shares traded daily. It has a low expense ratio of 0.09%, which depicts the most straightforward way to bet on the country’s big businesses.

Invesco QQQ Trust (QQQ)
Invesco QQQ Trust owns just non-financial Nasdaq stocks. This makes it a tech-heavy fund associated with top names that you may already be familiar with. Its 2020 performance showed a price rise of 48.4 percent, and Invesco has a decent expense ratio of 0.2 percent. This fund is indeed one of the top ETFs of 2021.

Vanguard S&P 500 ETF (VOO)
It tracks the S&P 500 and offers the investors a diversified portfolio of some of the country’s top firms. They have a low expense ratio of only 0.03 percent and depicted a solid market performance in 2020. The company showed a price soar of 18.3 percent, which represents the market’s overall gain. The fund commenced in 2010 and has hundreds of billions in assets.

Ark Genomic Revolution ETF (ARKG)
ARKG is an actively managed fund, implying a higher expense ratio than all the other passively managed ETFs on this list. It will cost you about 0.75% per year. Ark Genomic Revolution primarily invests in high-reward, but high-risk biotechnology and health care brands, such as the ones involved in CRISPR gene-editing, agricultural biology, and stem cells. It is managed by Cathie Wood, one of the most prominent fund managers, and has returned a compounded value of more than 40.3% in the last five years.

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