AUS
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Highlights
- Uncertainty around the new COVID-19 variants and central bank-led interest rate hikes have been hurting investor sentiments around the world for a while now.
- Major global stock markets have been witnessing selloffs, especially with tech scrips, which seems to have led to a market correction.
- The cryptocurrency world too met with a similar fate as major digital coins, including Bitcoin and Ethereum, significantly plunged in value recently.
- Amid such times, some financial experts believe that exchange-traded funds (ETF) can be a relatively safer investment option as they divide the funds amid an assortment of options.
Uncertainty around the new COVID-19 variants and central bank-led interest rate hikes have been hurting investor sentiments around the world for a while now.
Major global stock markets have been witnessing selloffs, especially with tech scrips, which seems to have led to a market correction.
The cryptocurrency world too met with a similar fate as major digital coins, including Bitcoin and Ethereum, significantly plunged in value recently.
Amid such times, some financial experts believe that exchange-traded funds (ETF) can be a relatively safer investment option as they divide the funds amid an assortment of options.
With that in mind, let us look at some theme-based ETF trends that can significantly rule the markets in 2022.
1. Blockchain ETFs
A blockchain is a decentralized database that records and tracks digital transactions in a tamper-proof and transparent manner. It is said to be the underlying technology for the crypto space.
Blockchain ETFs like Blockchain Technologies ETF (TSX:HBLK), directly or indirectly, can provide exposure to blockchain technologies this year.
Also read: Enbridge (TSX:ENB): An energy stock to buy in 2022?
2. Clean energy ETFs
Climate change concerns have triggered the demand and development of companies focused on promoting clean technology and energy. However, it is still an emerging industry with notable scope for growth in the future.
Investors focused on growth can invest in clean energy ETFs like BMO Clean Energy Index ETF (TSX:ZCLN) as they can grow significantly in the long run with the rise in the demand of such resources.
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3. Tech ETFs
Disruptive technologies like artificial intelligence (AI), robotics, cloud computing etc., have transformed the world. For this reason, the technology sector remains a key growth driver across industries with rapid tech innovation.
Investing in tech ETFs like BlackRock iShares S&P/TSX Capped Information Technology Index ETF (TSX:XIT) can be an ideal way to gain exposure to the tech space for long-term growth.
Bottomline
Canadian investors have expressed notable concern around the probability of interest rate hikes, which has seemingly pushed some of them to opt for less risky ventures.
In such scenarios, ETFs can diversify company-specific risks across the industry and minimize the risk attached with any particular business.
Also read: Scotiabank (BNS) & Tourmaline (TOU): 2 TSX dividend stocks to not miss
