This was a big year for the new ETFs, the popular investment that makes it easy to buy multiple stocks, cryptocurrencies or other assets.
Several bitcoin ETFs were released in 2021, with more possibilities for 2022. Some experts predict new ETFs for ethereum and other cryptocurrencies.
They are also awaiting the release of even more exotic backgrounds.
Fund company Defiance has just unveiled a new digital ETF revolution aimed at companies that are increasingly doing business with non-fungible tokens, or NFTs, the digital asset that has become popular in the arts and collectibles world.
Defiance’s NFT ETF is index-based and owns shares in companies such as bitcoin bank Silvergate, eBay, pop culture giant Funko and Playboy.
Other index-based ETFs continue to become popular. Ark Invest’s Cathie Wood has just launched a new fund that is linked to an index of companies with good corporate transparency scores.
Ark also has a family of actively managed ETFs, where managers choose individual stocks or other assets rather than relying on indices.
Actively managed ETFs to rival index-based funds
Managers at Natixis Investment said in a recent report that they expect the amount of actively managed ETF assets to double in 2022 from 2021. And more companies are looking to launch actively managed ETFs that focus on niche sectors of the stock market.
Fund company VanEck, one of the asset managers that launched a bitcoin ETF, also has a new ETF focused on agricultural technology.
This fund, called VanEck Future of Food ETF, has a peculiar symbol, YUMY, and has companies such as AppHarvest, vegetable milk producer Oatly, and tractor manufacturer Deere (DE).
More international ETF assets are also expected to be released.
Fund giant Vanguard said last month that it plans to introduce a China Select Equity Fund, which will buy shares in companies based in the world’s second-largest economy and will not be index-based.
“An active approach to investing in China, with the ability to invest in a wide range of Chinese onshores and offshores, will ensure fund managers have the flexibility to navigate the dynamics of potential market constraints and rapidly changing geopolitical landscapes.”
The ETF boom tends to continue to guarantee strong gains for the large financial companies that dominate the market. In that sense, shares in iShares owner BlackRock, ETF provider SPDR State Street (STT) and fund manager Invesco (IVZ) have risen about 30% so far this year.
*(Translated text. To read the original, click here)
Reference: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
