ETFs are a cost-effective way to gain exposure to a variety of assets without the hassle of a manually diversified portfolio. Nowadays, there are hundreds of ETFs to choose from, making the process far less seamless than the concept of an ETF should be. For this reason, I’ve identified three of the top ETFs to balance your 2022 portfolio. I recommend these for any investor – whether the ETFs become the pillars of your holdings or just an opportunity for the diversification of your existing portfolio.
Vanguard S&P 500 ETF (NYSEARCA: VOO)
The first ETF is one I would recommend for long-term holders during any market cycle – the Vanguard S&P 500 ETF. There are many ETFs that track the S&P 500 (SPY, IVV, SPLG, etc.). VOO trades with the lowest fees, making it the cheapest to enter and exit a position. For long-term holders, you may not think this is a relevant consideration, but market maker fees sure add up when investing large amounts of capital.
The S&P 500 is an index that currently tracks the 505 largest US companies listed on stock exchanges. It gives investors extreme diversification into the United States most prevalent industries. If you’re bullish on the financial success of America in the future, it’s never a bad time to dollar-cost average into the VOO.
iBET Sports Betting and Gaming ETF (NASDAQ: IBET)
If you look at the three-month price action of IBET, you’ll see a steady downtrend trend impacted by the lingering COVID-19 crisis and overdue broad market correction. With the world’s inevitable return to in-person life and the sports betting/gaming industries’ emergence into the digital world, I believe the IBET ETF presents a moderate-risk play with attractive upside potential.
IBET ETF 3 month price action, Yahoo Finance
The top holdings of IBET are companies like Flutter Entertainment (FTLR), Las Vegas Sands Corp (LVS), Penn National Gaming (PENN), DraftKings (DKNG), and MGM Resorts International (MGM). They’re big names in a sports-betting industry that’s moving the needle and consistently making headlines:
• Online sports betting in New York was legalized 5 weeks ago. We’ve seen over $2 billion in wagers so far.
• As of February 2022, online sports betting is still only legal in 19 states. As legislation moves along, this number will grow.
• According to NPR, 31 million Americans were expected to bet $7.6 billion on the 2022 Super Bowl LVI.
Amplify Transformational Data Sharing ETF (NYSEARCA: BLOK)
This final ETF is sure to be a controversial pick, but one I have a great deal of long-term conviction about. BLOK is an ETF known for its Web3.0/Crypto exposure. Its top holdings include:
• 5.66%: Bitcoin giant MicroStrategy (MSFT)
• 4.81%: Modern financial platform PayPal (PYPL)
• 3.98%: Bitcoin miner Marathon Digital Holdings (MARA)
• 3.55%: Chip giant NVIDIA Corp (NVDA)
• 5.66%: Bitcoin giant MicroStrategy (MSFT)
These holdings, and many more, are expected to play a hand in building the next generation of our digital world. If you are optimistic about the future adoption of cryptocurrency, decentralized finance, and metaverse-related ventures, BLOK is a great diversified play. I’d be foolish to try and predict the short-term behavior of the industry, but I believe 2022 is as good a time as ever to gain exposure to the growing digital landscape for the long-term.