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Best ETF Investment Strategies for 2021

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  • (1:00) - Breaking Down The Current Market Performance
  • (4:45) - What Can Investors Expect In 2021?
  • (9:55) - Will Clean Energy and Bank ETFs Continue Their Growth?
  • (15:30) - Finding Trends Accelerated By The Pandemic: HAIL & KOMP
  • (22:00) - What Is The Outlook For Emerging Markets in 2021?
  • (24:30) - What Are The Current Trends Investors Should Be Aware Of?
  •                 Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors. We discuss the best investment strategies for 2021.

2020 was a great year for stocks despite challenges posed by the pandemic. Major indexes continue to rise as investors are now focused on prospects for more economic stimulus with Democrats’ victory in the two senate runoff races in Georgia.

What can investors expect from 2021? Matt recommends a barbell approach, balancing the cyclical value opportunities arising from an economic recovery alongside beneficiaries of secular growth trends accelerated by the coronavirus pandemic. 

The SPDR S&P Kensho Clean Power ETF (CNRG - Free Report) ) has surged about 190% over the past year. Climate change is one of the four priorities that the Biden administration will focus on from Day One. Can clean energy ETFs continue to ride the Blue Wave?

Bank stocks have significantly outperformed the broader market over the past few weeks, after a long period of underperformance. The SPDR Bank ETF (KBE - Free Report) is up about 37% since the November election, versus S&P 500’s gain of about 9% during the period.

The SPDR S&P Kensho New Economies Composite ETF (KOMP - Free Report) invests in innovative companies disrupting traditional industries by leveraging rapid developments in robotics, automation, artificial intelligence, connectedness and processing power and automation. Tesla (TSLA - Free Report) and Riot Blockchain (RIOT - Free Report) are among its top holdings. The fund has gained more than 70% over the past year.

The SPDR S&P Kensho Smart Mobility ETF (HAIL - Free Report) holds companies that focus on autonomous vehicle technology, drone technology, and advanced transportation tracking and transport optimization systems. Blink Charging (BLNK - Free Report) and Plug Power (PLUG - Free Report) are among the top holdings. It is up over 100% in the past 12 months.

Tune into the podcast to learn more about these ETFs. Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.

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