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Most Interesting New ETFs of 2021

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Investors continue to pour money into ETFs at a record pace. US listed ETFs have already gathered more than $500 billion in net inflows year-to-date, surpassing the total for 2020. While fixed income ETFs gathered a lot of cash last year, most of new money this year has gone into equity ETFs. Ultra-cheap, plain-vanilla, broad market ETFs like Vanguard S&P 500 ETF(VOO - Free Report) , Vanguard Total Stock Market ETF (VTI - Free Report) and iShares Core S&P 500 ETF (IVV - Free Report) are the biggest asset gainers.

Many investors are moving out of actively managed mutual funds into ETFs mainly due to low cost and tax efficiency. Use of ETFs by active managers, either as a substitute for or in combination with individual stocks, increasing adoption by institutional investors and rising popularity of ETF model portfolios have further boosted the industry, which now has over $6.5 trillion in assets.

ETF providers continue to launch new products at a brisk pace to gain a share of the massive inflows. We saw a number of active ETFs launch this year, thanks mainly to enormous success of Ark ETFs.  Cathie Wood’s ARK Space Exploration & Innovation ETF (ARKX - Free Report) is one of the most successful launches of 2021. It holds companies poised to benefit from the fast-growing space economy.

Activist investor Engine No. 1, which won three Exxon Mobil (XOM - Free Report) board seats after a long proxy fight, launched the Transform 500 ETF (VOTE - Free Report) . The shares of the ETF will be used to push for climate change and other ESG proposals. Apple (AAPL - Free Report) and Microsoft (MSFT - Free Report) are the top holdings in the fund.

The Roundhill Ball Metaverse ETF (META - Free Report) holds global companies actively involved in the Metaverse, defined as next version of the internet. NVIDIA (NVDA - Free Report) and Tencent (TCEHY - Free Report) are among the top holdings.

The Direxion Low Priced Stock ETF (LOPX) tracks an equal-weighted index of stocks with relatively low trading prices. AMC (AMC - Free Report) is the top holding in the fund currently.

Please watch the short video above to learn more about these ETFs.

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