etf

Vaccination plans in the U.S. and globally have spurred a more positive economic outlook for 2021. Still, there are risks on the horizon, like potential delays in the rollout of those vaccines as well as political and trade-war tensions.


Here’s a look at three popular ETFs and whether we think they are buys for investors in 2021.


VANGUARD U.S....

SPDR S&P 500 ETF $379.79 (New York symbol SPY) lets you hold the top stocks of the S&P 500 Index; they’re the major U.S. companies based on market cap, liquidity and industry.


The fund’s highest-weighted stocks offer a lot of appeal for investors: Apple, 6.5% of assets; Microsoft, 5.2%; Amazon.com, 4.2%; Alphabet, 3.3%; Tesla, 2.1%; Facebook, 2.0%; Berkshire Hathaway, 1.4%; Johnson & Johnson, 1.3%; and JP Morgan Chase, 1.3%.


The ETF’s distribution also offers you a solid 1.5% yield, while the fund charges you a very low 0.095% MER.


Going forward, investors should directly gain from U.S....

COVID-19 pushed down the prices of most stocks and ETFs in early 2020. Some, like airlines, hotels, casinos and many restaurant stocks, are still down. Others have recovered to their old highs but may have trouble moving higher until the global economy returns to normal.


Meanwhile, some stocks and ETFs have taken off since mid-2020 and are now setting new all-time highs....

SPDR S&P CHINA ETF $127.30 (New York Exchange symbol GXC; buy or sell through brokers; www.spdrs.com) tracks the S&P China BMI Index. This includes all publicly traded Chinese stocks available to foreign investors.


Right now, the SPDR S&P China ETF holds 734 stocks....

ISHARES MSCI TAIWAN INDEX FUND, $52.54, is a buy for aggressive investors. The ETF (New York symbol EWT; buy or sell through brokers) gives you direct exposure to some of the top public companies of this East Asian powerhouse economy.


The fund’s largest holding is Taiwan Semiconductor at 22.1% of assets....

The major Canadian and U.S. stock markets have moved back up since their initial COVID-19 drop. Nonetheless, we think that if you can afford to stay in the market for several years or longer, now is still a good time to buy. We see ETFs as one way for you to profit from that rise, while cutting your risk.


The best of these funds offer a diversified group of stocks while charging you low management fees....

The Bank of Canada cut its benchmark interest rate to 0.25% from 1.25% in March 2020. The move was meant to spur the economy after COVID-19 hit. Whether the bank holds that rate steady, or cuts it even further, depends on the country’s economic growth and unemployment levels.


Meanwhile, even for our conservative investors, we caution against investing in bonds....

INVESCO SOLAR ETF, $99.27, is a buy for aggressive investors. The ETF (New York symbol TAN; buy or sell through brokers) tracks solar-related companies (including technology firms and utilities) listed on global exchanges.


The fund’s top holdings are Enphase Energy (U.S.: home solar systems) at 11.2%; SolarEdge Technologies (Israel: solar-power batteries), 8.8%; Xinyi Solar (China: solar panels), 7.4%; Sunrun Inc....

How to Get into Investing: ETFs can be a good starting point, especially for a smaller portfolio that’s just starting up. But watch out—there are both good and bad ETFs

Broadridge is far from a household name, except in households where most members work in the investment business. Since Automatic Data Processing (symbol ADP on Nasdaq) spun it off in 2007, the company has become a key provider of services to financial, brokerage and wealth management firms.

We added Broadridge to our recommendations in the February 2008 issue of Wall Street Stock Forecaster as a buy at $22 a share....