Exchange-traded funds (ETFs) continue to grow in popularity. 2022 is expected to be a record year for ETFs, with more launches and higher fund inflows than last year. data from New York Stock Exchange suggest That as of September 30, 2021, there were approximately 2,700 ETFs in the United States with $6.7 trillion under management. Meanwhile, in 2021, more than 1,500 new ETFs were launched worldwide.
ETFs have become popular among investors due to their relatively low fees, liquidity, tax efficiency, and transparency. In addition, they provide investors with the opportunity to diversify portfolios and gain exposure to a wide range of asset classes, subjects and countries.
In 2022, we could see more investors flock to actively managed ETFs to better handle volatility and increased downside risk. In light of extended valuations and rising inflation, analysts are proposing a combination of quality and value to better navigate the current uncertain terrain of stock markets.
We must mention InvestorPlace.com Readers that this new and small money. Since they do not have a significant trading history, it will be necessary to conduct more due diligence before investing in them.
With that information, here are three new ETFs to put on your buy list for January:
- Gen Z ETF (NASDAQ:get married)
- Motley Fool Next Index ETF (New York:TMFX)
- Vegetech Foundation for Plant-Based Innovation and Climate (New York:EATV)
New ETFs: Gen Z ETF (cousin)
Expense Ratio: 0.60% per year
Recent research suggests that “members of Generation Z — loosely speaking, people born from 1995 to 2010 — are true digital natives: from older youth, they were exposed to the Internet, social networks, and mobile phone systems.” In addition to technology, these young people in society typically value environmental issues, diversity, and the health of body and mind. In 2020, about 10% of American voters were part of Gen Z.
As these consumers enter different segments of society, companies are looking for ways to better estimate their spending habits. Our first fund, The Gen Z ETF, provides exposure to these young consumers, “the highest earning generation expected in less than ten years, earning more than $40 trillion annually.”
This actively managed fund was launched in December 2021. The ten leading names make up approximately 35% of the net assets of US$4.7 million. Tesla (NASDAQ:TSLA), an educational platform Coursera (New York Stock Exchange:Tennis Court), social media group Explode, Explode (New York Stock Exchange:Explode, Explode), a language learning platform Duolingo (NASDAQ:by), and cryptocurrency exchange Coinbase Global (NASDAQ:Currency) Among the top stocks on the list.
ZGEN started trading on December 16 with an opening price of $25.28. Right now it is hovering at $21.09.
Motley Fool Next Index ETF (TMFX)
Expense Ratio: 0.50% per year
The Motley Fool Next Index tracks a market capitalization-weighted index of medium and small cap US stocks. These names have been recommended by motley fulAnalysts and news releases, but excludes the 100 largest stocks in the pool.
TMFX, which owns 198 shares, began trading in late December 2021. The 10 largest holdings represent about 16.5% of net assets of $13.2 million.
Arista Network (New York Stock Exchange:ANET), which provides cloud networking solutions; McKesson (New York Stock Exchange:MCK), which distributes pharmaceutical products; trade office (NASDAQ:TTD), which offers a digital advertising platform; Diesel and natural gas engine manufacturer latency (New York Stock Exchange:CMI), Inc. Science, Technology and Innovation Corning (New York Stock Exchange:GLW) includes the five leading stocks.
YTD TMFX is down more than 8%, hitting an all-time low in recent days. Compared to large-cap stocks, medium- and small-cap stocks are generally more volatile. But it also offers higher growth potential in the long run. Therefore, you may want to keep this new ETF on your radar.
New ETFs: VegTech’s Plant-Based Innovation and Climate Investment Fund (EATV)
Expense Ratio: 0.75% per year
Environmental protection, as well as sustainable food production, has recently become among the most pursued investment topics. Our latest fund, the VegTech Plant-Based Innovation & Climate ETF, invests in companies focused on plant-based technologies and innovation.
Companies in the fund may make animal-free products, provide plant-based foods or materials, and develop farming technology. EATV was also listed in December 2021. It is an actively managed ETF and currently has 37 stocks. The top ten holdings account for approximately 58% of the total net assets of $3.1 million.
Among the leading names, the vegetarian meat supplier Beyond Meat (NASDAQ:BYND); MGP Components (NASDAQ:MGPI), which provides nutritional starch components; Synthetic Biology Company Amaris (NASDAQ:AMRS); Manufacturer of skin care products ELF Beauty (New York Stock Exchange:dwarf); And Ingredients (NASDAQ:INGR) that provide nutritional ingredients, starches and sweeteners.
EATV is down around 7% YTD (YTD) to hit a record low in recent days. After a thorough search, Transfer It indicates that the alternative protein market could exceed $27 billion by 2027, growing at a compound annual growth rate (CAGR) of more than 11% from 2020 to 2027. Long-term investors with a three to five year horizon may consider investing in the fund at current levels.
theAt the date of publication, Tezcan Gecgil did not (directly or indirectly) hold any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com’s posting guidelines.
Tezcan Gecgil has worked in investment management for over two decades in the US and UK in addition to formal higher education in the field, and has also completed all three levels of the Certified Market Technician (CMT) exam. Her passion is options trading based on technical analysis of fundamentally strong companies. She particularly enjoys setting up weekly covered calls to generate income.