ETFs are a great way to diversify and invest for the long term.
Through ETFs investors can gain vast exposure to markets as a whole, here are my top three ETF picks.
Ark Innovation ETF ($ARKK)
Current Price: $104.14
52/Wk High: $106.15
52/Wk Low: $33.00
Market Cap: $10.3 billion
Kicking it off with the ever so popular Ark Innovation ETF. $ARKK is an excellent pick if you are looking to gain access to some great names innovating for the future.
According to management, this ETF is made of “disruptive innovation” names, which are companies that are introducing new technology services or products that change the way the world works.
Currently, $ARKK is made up of 47 holdings. Top holdings include Tesla, Invitae Corporation, Square, Roku, and Crispr Therapeutics.
Due to the bullish investments within the ETF $ARKK has run big time this year. The Ark Innovation ETF is up 116.10% in market value on a one year basis, and shows no signs of slowing down.
Vanguard High Dividend Yield ETF ($VYM)
Current Price: $83.77
52/Wk High: $94.86
52/Wk Low: $60.07
Market Cap: $27.37 billion
The Vanguard High Dividend Yield ETF is a solid pick if you are looking to get paid for taking on slower growth.
The Vanguard High Dividend Yield ETF is filled with high dividend paying names. The funds top holdings include Johnson and Johnson, Procter & Gamble, JP Morgan Chase & Company, and finally Verizon.
In total the fund is made up of 423 individual names and the ETF ($VYM) currently pays out a quarterly dividend of $0.7053, representing a yield of 3.42%.
Furthermore, the funds performance has not been bad, but due to the COVID-19 pandemic and market shake up, the fund is still down 5.59% on the 1 year based on market value.
Overall, the Vanguard High Dividend Yield ETF is made up of excellent names that are not going anywhere and it seems to be an excellent low risk long term investment, that you get paid to hold quarterly.
VanEck Vectors Semiconductor ETF ($SMH)
Current Price: $188.53
52/Wk High: $190.95
52/Wk Low: $96.00
Market Cap: $2.8 billion
Finally, the VanEck Vectors Semiconductor ETF is an excellent pick if you are looking to get in on the ever changing semiconductor space.
The VanEck Vectors Semiconductor ETF is made up of 25 total holdings. The top five holdings consist of Taiwan Semiconductor Manufacturing, Nvidia Corporation, Intel, Asml Holdings, and Lam Research Corporation.
This fund has also been on fire in 2020, with the total market value growing 48.42% just in the past year.
Due to the attractiveness of exposure to names such as Nvidia and Qualcomm I believe that $SMH will be a long term growth story within the ETF space and its an excellent long term investment in my opinion.
Overall, ETFs are a great way to get in on sectors at a lower risk. Funds such as $ARKK that are investing in the future and creating a much larger growth opportunity than most other names present a huge opportunity.
In short the Vanguard High Dividend Yield ETF, Ark Innovation ETF, and Van Eck Vectors Semiconductor ETF are all great long term picks to ride out market volatility all the while capitalizing on growth.
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Disclaimer: This is not direct financial advice, simply opinion based on independent research.