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The U.S. market was in great shape as 2020 came to a close thanks mainly to massive global policy easing and vaccine rollouts. The S&P 500, the Nasdaq and the Dow Jones were hovering around their all-time highs as the Santa rally charged up Wall Street.
Though the markets took a dive to start the New Year in apprehension of the outcome of the Georgia Senate runoffs, even an undivided Congress and an overall Democratic win should not hold back the markets for long. And in any case, if there is a gridlock, markets should soar.
And this will happen after the Nasdaq Composite's rally of 43.6% in 2020 (best yearly performance since 2009), the tech sector’s surge of about 90% from its recent trough recorded from Mar 23 as well as the S&P 500’s 65.4% gains and the Russell 2000’s 94% return since the same date.
After such astounding gains, thoughts of a correction in the market or overvaluation concerns are justified. This is especially true given the sky-high debt levels.
Though the year 2021 should stay strong, the rally has chances of slowing down. Notably, the combined size of the balance sheet of the Fed, BoJ and the ECB was stretched to $22.6 trillion in December 2020, up from the pre-crisis level of $4 trillion. This indicates the central banks’ limited power of further balance sheet expansion from here.
On the other hand, vaccine hopes are already priced in at the current level. If anything can trigger massive upsurge from here in 2021, it would be meaningful economic and corporate expansion.
Against this backdrop, we highlight a few ETFs under $20 that can prove to be good bets in 2021. These cheap ETFs can be lucrative investing options at the present sky-high pricing levels.
ETFs in Focus
Global X SuperDividend REIT ETF (SRET - Free Report) ) – $8.76
The underlying Solactive Global SuperDividend REIT Index tracks the performance of Real Estate Investment Trusts that rank among the highest yielding REITs globally. It charges 59 bps in fees and yields 9.04% annually.
Global X Cannabis ETF ) – $10.92
The underlying Cannabis Index provides exposure to exchange-listed companies that are active in the cannabis industry. It charges 50 bps in fees and yields 5.18% annually (read: ETFs to Buy as Tilray-Aphria Merger Creates Cannabis Giant).
Global X SuperIncome Preferred ETF (SPFF - Free Report) ) – $11.78
The underlying S&P Enhanced Yield North American Preferred Stock Index tracks the performance of the highest-yielding preferred securities in the United States and Canada. It comprises preferred stocks that meet certain criteria relating to size, liquidity, issuer concentration and rating, maturity and other requirements. It charges 58 bps in fees.
Global X SuperDividend U.S. ETF (DIV - Free Report) ) – $16.96
The underlying INDXX SuperDividend U.S. Low Volatility Index tracks the performance of 50 equally weighted common stocks, MLPs & REITs that rank among the highest dividend yielding equity securities in the United States. This product charges 46 bps in fees and yields 8.01% annually.
The underlying Prime Junior Silver Miners & Explorers Index provides a benchmark for investors interested in tracking public, small-cap companies that are active in silver mining exploration and production industry. It charges 69 bps in fees and yields 1.16% annually.
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5 ETFs Under $20 Up for Gains in 2021
The U.S. market was in great shape as 2020 came to a close thanks mainly to massive global policy easing and vaccine rollouts. The S&P 500, the Nasdaq and the Dow Jones were hovering around their all-time highs as the Santa rally charged up Wall Street.
Though the markets took a dive to start the New Year in apprehension of the outcome of the Georgia Senate runoffs, even an undivided Congress and an overall Democratic win should not hold back the markets for long. And in any case, if there is a gridlock, markets should soar.
And this will happen after the Nasdaq Composite's rally of 43.6% in 2020 (best yearly performance since 2009), the tech sector’s surge of about 90% from its recent trough recorded from Mar 23 as well as the S&P 500’s 65.4% gains and the Russell 2000’s 94% return since the same date.
After such astounding gains, thoughts of a correction in the market or overvaluation concerns are justified. This is especially true given the sky-high debt levels.
Though the year 2021 should stay strong, the rally has chances of slowing down. Notably, the combined size of the balance sheet of the Fed, BoJ and the ECB was stretched to $22.6 trillion in December 2020, up from the pre-crisis level of $4 trillion. This indicates the central banks’ limited power of further balance sheet expansion from here.
On the other hand, vaccine hopes are already priced in at the current level. If anything can trigger massive upsurge from here in 2021, it would be meaningful economic and corporate expansion.
Against this backdrop, we highlight a few ETFs under $20 that can prove to be good bets in 2021. These cheap ETFs can be lucrative investing options at the present sky-high pricing levels.
ETFs in Focus
Global X SuperDividend REIT ETF (SRET - Free Report) ) – $8.76
The underlying Solactive Global SuperDividend REIT Index tracks the performance of Real Estate Investment Trusts that rank among the highest yielding REITs globally. It charges 59 bps in fees and yields 9.04% annually.
Global X Cannabis ETF ) – $10.92
The underlying Cannabis Index provides exposure to exchange-listed companies that are active in the cannabis industry. It charges 50 bps in fees and yields 5.18% annually (read: ETFs to Buy as Tilray-Aphria Merger Creates Cannabis Giant).
Global X SuperIncome Preferred ETF (SPFF - Free Report) ) – $11.78
The underlying S&P Enhanced Yield North American Preferred Stock Index tracks the performance of the highest-yielding preferred securities in the United States and Canada. It comprises preferred stocks that meet certain criteria relating to size, liquidity, issuer concentration and rating, maturity and other requirements. It charges 58 bps in fees.
Global X SuperDividend U.S. ETF (DIV - Free Report) ) – $16.96
The underlying INDXX SuperDividend U.S. Low Volatility Index tracks the performance of 50 equally weighted common stocks, MLPs & REITs that rank among the highest dividend yielding equity securities in the United States. This product charges 46 bps in fees and yields 8.01% annually.
ETFMG Prime Junior Silver ETF (SILJ - Free Report) ) – $17.41
The underlying Prime Junior Silver Miners & Explorers Index provides a benchmark for investors interested in tracking public, small-cap companies that are active in silver mining exploration and production industry. It charges 69 bps in fees and yields 1.16% annually.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>