Top ETF Stories of 2020 & Picks for 2021

  • (1:00) – Record Growth For ETF Assets
  • (7:20) – What Were The Top Performers Of 2020
  • (14:05) – Will We Get A Bitcoin ETF In 2021?
  • (17:50) – ARK Invest ETFs Best Performers
  • (22:50) – Active Non-Transparent and ESG ETFs
  • (30:10) – New ETF Launches and Closures
  • (36:00) – Top Picks For 2021
  • (39:30) – Episode Roundup: [email protected]

In this episode of ETF Spotlight, I speak with Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence. We discuss the top ETF stories of 2020 and the outlook for 2021.

2020 is turning out to be another banner year for ETF asset gathering, with year-to-date inflows exceeding $500 billion, while a similar amount has flown out of mutual funds. Many investors now prefer ETFs since they are more tax-efficient and usually cheaper than mutual funds.

Solar and clean energy ETFs surged again this year after a spectacular performance last year. The Invesco Solar ETF TAN is the best performing ETF of 2020, with a gain of almost 180%. Other top performing ETF areas include internet, e-commerce and cloud computing, which benefitted from trends accelerated by the pandemic.

Several ETF providers have filed for bitcoin and other crypto ETFs over the past few years but all those applications have been rejected by the SEC. While Square SQ and PayPal PYPL have made it easy to buy and sell bitcoin, investors who want cryptocurrencies in their brokerage accounts have to rely on GBTC by Grayscale or the new Bitwise 10 Crypto Index fund BITW. However, both these products usually trade at a substantial premium to their NAVs. Will we see a bitcoin ETF in 2021?

Three ARK ETFs–ARK Genomic Revolution ETF ARKG, ARK Innovation ETF ARKK and ARK Next Generation Internet ETF ARKW–are among the top 10 best performing ETFs this year. Cathie Wood has been a long-time bull on Tesla (NASDAQ:TSLA) TSLA, which is the top holding in ARKK and ARKW. As a result, ARK Investment Management is one of the top asset gainers of 2020. What lies ahead?

This has been a record year for ETF launches and closures too. Eric likes the Invesco NASDAQ Next Gen 100 ETF QQQJ among the best new ETFs of 2020.

And what should investors watch for in 2021? Eric’s picks are: Dimensional US Core Equity Market ETF DFAU, Vanguard Total Stock Market ETF VTI and AdvisorShares Pure US Cannabis ETFMSOS. Tune into the podcast to learn more.

Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email [email protected].

(In full disclosure, Neena owns shares of QQQJ in the ETF Investor Portfolio.)

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Tesla, Inc. (TSLA): Free Stock Analysis Report

Invesco Solar ETF (TAN): ETF Research Reports

PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report

Vanguard Total Stock Market ETF (VTI): ETF Research Reports

Square, Inc. (SQ): Free Stock Analysis Report

ARK Next Generation Internet ETF (ARKW): ETF Research Reports

ARK Innovation ETF (ARKK): ETF Research Reports

ARK Genomic Revolution ETF (ARKG): ETF Research Reports

Grayscale Bitcoin Trust (GBTC): ETF Research Reports

Invesco NASDAQ Next Gen 100 ETF (QQQJ): ETF Research Reports

AdvisorShares Pure US Cannabis ETF (MSOS): ETF Research Reports

Dimensional US Core Equity Market ETF (DFAU): ETF Research Reports

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