Eight hot ETFs to explore in July

Summary

  • Vanguard Growth ETF (VUG) tracks large-cap companies listed on NASDAQ, and its major holdings are in big tech companies.
  • iShares Russell 2000 (IWM), which tracks small caps, has assets worth US$67,897.
  • The US Global Jets (JETS)’s stock traded at US$25.355 at 12.12 pm ET on June 23, down 0.14%.

An exchange-traded fund (ETF) is a stock that tracks a sector, an index, a commodity, or assets that can be sold or bought at the stock exchange like regular stocks. ETFs can be designed to track a specific type of investment or diverse collections of stocks or a single commodity, and so on.

ETFs are available at low costs as investors may not be able to buy individual stocks offered by ETFs. Investors can access many industries through ETFs. But ETFs limit investor's options of diversification. Lack of liquidity is the major issue for ETFs.

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Invesco QQQ Trust (QQQ)

Invesco QQQ offers investors access to Nasdaq-100, the 100 largest non-financial companies listed on the Nasdaq stock exchange.

Its stock traded at US$348.59 at 10.12 am on June 23, up by 0.27% over the previous closing price. Its stock prices have increased by 12.67% YTD. Its total assets are US$167,620.

Also read: Which Are 10 Largest Stocks On Dow Jones Index?

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Invesco Ltd (NYSE: IVZ), the ETF provider, had in January this year announced that both NASDAQ 100 ETF (QQQM) and Invesco NASDAQ NextGen 100 ETF (QQQJ) could gather US$1 billion in asset management since they were launched in October 2020 as part of Invesco QQQ Innovation Suite.

This innovation suite provides clients access to innovation companies listed on Nasdaq. 

Also read: Which are the top stocks owned by Warren Buffett?

Vanguard Growth ETF (VUG)

Vanguard Growth ETF focuses on growth over, value, or low-risk stocks. It focuses on large capital companies listed on Nasdaq or NYSE, which are growth stocks. Its list of companies includes giants like Apple (AAPL), Facebook (FB), Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOG, GOOGL). Big companies make one-third of its portfolios though it has holdings of stocks of 280 companies.

Its stock traded at US$282.63 at 11 am on June 23, up by 0.07% over the previous closing price. Its stock prices increased by 8.8% YTD. Its total assets are US$77,486.

Also read: Ten stocks under US$50 to explore

iShares Russell 2000 (IWM)

IWM tracks Russell 2000 index and thus mostly small-cap US stocks. Its portfolio offers short-term exposure, risk asset class, long-term buying, and holding stocks. In short, it tracks stocks representing the overall US economy.

Its stock traded at US$229.05 at 11.16 am on June 23, up by 0.50% over the previous closing price. Its stock prices increased by 18.34% YTD. Its total assets are US$67.897. 

Also read: How can I invest in US stocks?

SPDR Gold Trust (GLD)

GLD ETF tracks the prices of gold bullion at the over-the-counter market. It owns gold as well as cash. Investors are interested in buying physical gold as it is a secure investment against a falling economy or investment in gold companies.

 To buy and store gold is difficult for individual investors. In contrast, investing in liquid stocks and can be bought and sold on a trading day is an easy option for investors.

Its stock traded at US$167.28 at 11.25 am on June 23, down by 0.62% over the previous closing price. Its stock prices decreased by 8.25% YTD.

Also read: What Are Large-Cap Stocks?

First Trust North American Energy Infrastructure Fund (EMLP)

EMLP tracks pipeline companies, utilities that generate half of their revenue from energy infrastructure assets like pipelines, storage tanks, or power transmission.

It could get a significant amount of interest due to two reasons. First, it gets a steady current income due to quarterly distributions. Second, it avoids federal and state taxes as it transfers this tax liability is passed through partners. It qualifies for not being taxed as corporates as it generates 90% of its income from natural resource-based businesses like transportation and energy storage.

Its stock traded at US$24.80 at 11.50 am on June 23, down by 0.44% over the previous closing price. Its stock prices increased by 20.38% YTD.

Also read: Which Are The Top Companies Stocks On S&P 500 Index?

The US Global Jets (JETS)

JETS tracks the index of airline-related companies like airline operators, airport services, terminal services, and manufacturers. Its portfolio includes airlines like Delta, American, Southwest, and United. The majority of holdings are in American airlines, but the smaller portion is in Asian and European airlines.

It is the only ETF purely dedicated to the air travel index. Other players track the overall travel industry, including air travel.

Its stock traded at US$25.355 at 12.12 pm on June 23, down by 0.14% over the previous closing price. Its stock prices increased by 15.53% YTD.

Also read: What Car Companies Are Publicly Traded?

iShares S&P GSCI Commodity-Indexed Trust (GSG)

GSG tracks broad commodity exposure, Iike energy, metals, and livestock. But crude oil, energy commodities, and natural gas make 7% of it.

Its stock traded at US$15.86 at 12.49 pm on June 23, down by 0.70% over the previous closing price. Its stock prices increased by 29.57% YTD..

Also read: Why Was NYSE Created?

Fidelity MSCI Consumer Discretionary Index ETF (FDIS)

FDIS tracks the discretionary consumer sector of the US that includes automakers, cruise companies, hotel companies, apparel, furniture companies, and food chains. Amazon, the Home Depot, Tesla Inc, and Nike are among its top ten holdings.

Its stock traded at US$80.09 at 1.06 pm on June 23, down by 0.51% over the previous closing price. Its stock prices increased by 13.36% YTD.

Also read: How can I buy US$500 stock?

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