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Top ETF Stories of 1H 2021 & 2H Outlook

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  • (1:00) - Equity ETFs Massive Growth
  • (8:50) - Cathie Wood’s Ark Invest Files For Bitcoin ETF
  • (15:20) - ARK Invest’s ETFs Rally
  • (19:30) - Top New ETFs of 2021
  • (27:05) - Episode Roundup: Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence, about the top ETF stories of the first half and the outlook for the second half of 2021.

After a remarkable run in 2020, stocks continued their rally in the first half of 2021, defying fears about valuations and inflation. The S&P 500 index (SPY - Free Report) gained 14.4%, its best first-half performance since 1998, the Dow Jones (DIA - Free Report) rose 12.7% and the Nasdaq (QQQ - Free Report) returned 12.5% during this period.

More than $460 billion has flowed into ETFs so far this year, and unlike last year, most of this money went into equity ETFs. Retail investors bought each dip in the stock market, using broad market ETFs.

Dimensional Fund Advisors recently converted four of its tax-managed mutual funds with about $30 billion of assets into ETFs. Eric predicts that more than $1 trillion worth of mutual fund assets could be converted into ETFs, in the coming decade.

Cathie Wood’s ARK Investment filed for a bitcoin ETF this week, in partnership with 21Shares.

Will we see a bitcoin ETF in 2021? Cathie’s flagship fund— ARK Innovation ETF (ARKK - Free Report) —stumbled earlier this year, as investors rotated out of last year’s winners. It has rebounded lately and is now up about 30% from its May lows.

We have seen a lot of interesting ETF launches recently, including ARK’s Space ETF (ARKX - Free Report) and the VanEck Vectors Social Sentiment ETF (BUZZ - Free Report) , which was promoted by Dave Portnoy. Eric likes the Engine No. 1 Transform 500 ETF (VOTE - Free Report) and the Invesco NASDAQ Next Gen 100 ETF (QQQJ - Free Report) among the new ETFs. For the second half of the year, he is bullish on value stocks and commodities. Tune in to the podcast to learn more.

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.

(In full disclosure, Neena owns shares of QQQJ in the ETF Investor Portfolio.)

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