Exchange traded funds provide investors with an opportunity to access a wide variety of companies that are growing quickly by investing in the shares of public firms that are experiencing high growth rates in terms of sales and earnings. They allow investors to diversify their investments thus reducing their level of risk exposure. This article will be examining some of the 5 best future proof EFTs to invest in for the year 2022.
VBTC VanEck Vectors Bitcoin ETF
This Exchange trading fund was launched late last year and is regarded as the cheapest bitcoin-linked ETF that is available on the U.S. market. It is designed in such a way that it has a C-corporation structure which enables it to accomplish its aim of providing long-term investors with a very efficient tax experience.
The VanEck Vectors Bitcoin ETF is actively managed by a very qualified team that is highly knowledgeable along with having decades of experience in the futures markets. The investment objective of this ETF is to find capital appreciation by making investments in bitcoin futures contracts. Furthermore, the ETF provides an exchange traded vehicle that is accessible to investors through which it offers exposure to bitcoin-linked investments. However, the fund refrains from directly investing in bitcoin and other digital assets. One of the aims of this ETF is to simplify the complexities associated with directly owning bitcoin while also offering investors the potential for higher tax efficiency through its C-corporation structure. The total value of the net assets of this ETF is currently valued at $24 million.
This ETF gives investors exposure to companies involved in the production of energy from the sun, wind, and other renewable sources by providing them with targeted access to clean energy stocks from around the world. The investment objective of this ETF is to monitor the investment results of an index consisting of global equities from the clean energy sector. It is one of the ETFs of the iShares group with the net assets of the fund valued at almost 5 billion dollars.
The fund was initiated in the year 2008 and has grown since then with a current daily volume of over 5 million and a 30-day average volume of more than 7 million. It also has a 30-day median Bid/Ask spread of 0.05% while its benchmark index is the S&P Global Clean Energy Index. The management fee is 0.42% of the invested capital and the investor does not have to incur any additional fee.
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This is the other ETF of the iShares group and its investment objective is to try and give investors a total return while also factoring in both capital and income returns. It mainly focuses on global equities from the technology sector but also offers investors opportunities in the industrial, Real Estate, and Communication Services sectors.
The fund was initiated in the year 2018 and carries a management fee of 0.40% of the invested capital. It is a sustainable investment that is featured on the London Stock Exchange and offers investors over 900 investment options in the global category. The benchmark index of the iShares Digital Security ETF is the STOXX Global Digital Security Index.
VanEck Future of Food ETF
The VanEck Future of Food ETF is an actively-managed ETF that looks for long-term capital growth by focusing its investment on companies involved in Agri-Food technology and innovation which comprises industries and companies that lead, supply, enable, disrupt, or benefit from agriculture as well as food products and services that are new and environmentally sustainable.
The ETF was launched late last year around November and is featured on the New York Stock Exchange. It has a physical ETF structure with total net assets currently valued at just over $2 million. Due to population growth, environmental sustainability initiatives, and evolving consumer preferences, there has been a great demand for Agri-Food innovations and options with a higher level of efficiency, resilience, and sustainability. This has led to the creation of opportunities that this ETF aims to take advantage of.
Also, considering that the agricultural and food sectors are in the nascent stages of what could be a multi-decade transformation, the sector holds a lot of potential that investors can capitalize on through this ETF. Furthermore, the availability of active management makes it possible for growth opportunities to be targeted much more easily in this emerging market.
Rize Environmental Impact 100 UCITS ETF
This ETF looks to direct investment into the 100 most innovative and impactful companies with the potential to benefit from the development and application of solutions that tackle the most urgent climatic and environmental challenges in the world. This consists of leaders and innovators across the categories of clean water, renewables and hydrogen, transportation in terms of electronic vehicles, energy efficiency, waste and the circular economy as well as nature-based solutions. It is the first ETF in Europe that focuses on environmental impact and offers investors exposure to the top 100 companies that constantly develop creative and effective solutions across the aforementioned categories to bring about a positive environmental impact.
This ETF has been structured in such a way that it addresses the six environmental objectives laid out in the EU Taxonomy for Sustainable Activities which are:
- Climate Change Adaptation
- The Transition to a Circular Economy
- Climate Change Mitigation
- Pollution Prevention and Control
- The Protection and Restoration of Biodiversity and Ecosystems
- The Sustainable Use and Protection of Water and Marine Resources
The investment objective of the Rize Environmental Impact ETF is to provide investment results that are proportional to the price and yield performance of the Foxberry SMS Environmental Impact 100 Index even before fees and expenses. This ETF enables investors to benefit from the environmental impact opportunities that the top 100 companies are capitalizing on.
This covers the five best future-proof ETFs that people can invest in for the year 2022 as these ETFs are projected to keep growing and offering more investment opportunities for people.
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