Exchange-traded funds (ETFs) have become increasingly popular among investors in recent years due to their low fees, diversification, and ease of trading. With the ongoing market volatility caused by the COVID-19 pandemic, investors are looking for ETFs that show renewed strength and potential for growth. Here are three ETFs that fit the bill:
1. iShares U.S. Technology ETF (IYW)
The iShares U.S. Technology ETF (IYW) tracks the performance of the Dow Jones U.S. Technology Index, which includes companies in the technology sector such as Apple, Microsoft, and Facebook. With the pandemic accelerating the shift towards digitalization, the technology sector has been one of the few areas of the market that has seen consistent growth. IYW has gained over 30% in the past year and has a low expense ratio of 0.42%.
2. iShares MSCI EAFE ETF (EFA)
The iShares MSCI EAFE ETF (EFA) tracks the performance of the MSCI EAFE Index, which includes companies in developed markets outside of North America such as Japan, Europe, and Australia. With the global economy slowly recovering from the pandemic, EFA offers exposure to international markets that have the potential for growth. EFA has gained over 20% in the past year and has a low expense ratio of 0.32%.
3. Invesco QQQ ETF (QQQ)
The Invesco QQQ ETF (QQQ) tracks the performance of the Nasdaq-100 Index, which includes companies in the technology, healthcare, and consumer discretionary sectors such as Amazon, Tesla, and Netflix. Similar to IYW, QQQ offers exposure to the technology sector, which has been a driving force in the market’s recovery. QQQ has gained over 40% in the past year and has a low expense ratio of 0.20%.
In conclusion, these three ETFs offer investors the potential for growth and diversification in a volatile market. As always, it’s important to do your own research and consult with a financial advisor before making any investment decisions.
