Canadian entrepreneur Simon Kronenfeld maintains a diverse range of investments to secure and build upon is financial success. According to Kronenfeld ETFs, or exchange-traded funds, provide the option of buying into a diverse set of investments with lower cost and risk. Rather than buying stocks in a company, ETFs are a way of investing in multiple companies within a market sector. With more people than ever before investing in ETFs, Simon Kronenfeld shares his top five exchange traded funds to watch in 2021.
Vanguard S&P 500
The S&P 500 measures the success of the 500 largest companies in America, based on market capitalization. The Vanguard ETF follows the S&P 500 returning 18% in 2020, with an average return over 20 years of 10-11%. The Vanguard ETF covers billions of dollars in assets, but with an annual cost of $3 per $10,000 invested keeping the expense ratio much lower than similar funds. As a result, it provides a reliable and stable return on investment. According to Kronenfeld the market is nearly certain to continue growing, keeping risk and instability at a minimum.
Invesco QQQ Trust
The Invesco QQQ trust is a great option for investing in technology stocks, and provides exposure to the giants of the industry such as Tesla, Apple and Google. When rising Nasdaq stocks get big, they usually make their way into QQQ shortly after, making it an easy way to buy into a diverse range of hot tech companies. The fund costs $20 for every $10,000 invested, which is typical for funds like this, and is currently one of the largest ETFs. In 2020, the trust saw spectacular growth of 48%. And Simon Kronenfeld is one of the many investors who are confident in the future of the QQQ trust.
Vanguard High Dividend Yield
The Vanguard High Dividend Yield tracks the FTSE High Dividend Yield Index, which focuses on US stocks offering high-dividend yields. Despite low growth over the last year, it remains very profitable. Thanks to the low management fee of $6 per $10,000 invested, the amount that you buy into the stock is unlikely to endanger your potential returns from the asset. The Vanguard High Dividend Yield delivers steady dividends in the range of 2.5% to 3.5%, in addition to capital appreciation.
Invesco Dynamic Leisure and Entertainment
The entertainment industry took a hit across the globe as a consequence of the pandemic and the emergency lockdowns that have had such a major impact on the daily operations of every business in this sector. These circumstances are temporary however, and as the world returns to normalcy investors might capitalize on a major reversal. This fund charges $63 per $10,000 invested, making it the most expensive on this list, but the current dip could deliver wise investors a solid return in future with a well-timed buy-in. In fact, these sectors are expected to see a major boom thanks to the massive demand and undersupply of all the hospitality and entertainment services that have been unable to operate over the course of the pandemic.
VanEck Vector Gold Miners
Gold is always a reliable investment, and a good option when faced with uncertain markets. The cost of this ETF is $52 per $10,000 invested, which is on the high side, but the fund has seen impressive growth of 20% over the last year. Rather than the buying and selling of gold, this ETF invests directly into gold miners, giving you access to the means of gold production, which offers greater long-term reliability. Gold will is a good hedge against currency as inflation rises, leading many investors to expect big returns over the next decade.
If you are considering investing in ETFs, these funds offer a wide range of entry points for 2021. No fund offers automatic success, but a smart and educated investor can make major profits by making the right choices. The awareness to spot the funds that are about to break out and which ones are reaching their peak is a key talent that successful entrepreneurs like Simon Kronenfeld rely upon. Develop this skill by analyzing the right options for your situation, planning ahead, and being bold with your decisions when the time comes.