- While market volatility has rattled many investors, bold naysayers have the opportunity to pick up some of the best ETFs (exchange-traded funds) at bargain prices.
- Invesco QQQ Trust(QQQ): Although technology was one of the hardest hit sectors, in the long run QQQ could be one of the best ETFs for a comeback.
- Vanguard Mid-Cap Growth Index Fund ETF (vote): With mid-cap names offering a solid mix of growth and stability, VOT is among the best ETFs in this environment.
- Renaissance POPE ETF (Initial Public Offering): New registrations are always risky, but spreading the danger around can be tantalizing to some players.
- ProShares Bitcoin Strategy ETF (BITO): Only an idea for the boldest of opposites, BITO is on promotion due to the cryptocurrency fallout.
While market volatility worries investors, it’s also fair to point out that some of the biggest gains can be made in a zigzag while others zag. Even better, you can spread your risk through exchange-traded funds (ETFs) instead of choosing individual stocks. In turn, ambiguous circumstances can favor the best ETFs for bargain hunters.
On the one hand, investing your money in a sole proprietorship always increases the underlying risk profile. Despite choosing a viable industry, for example, you never know what might happen with your specific idea. With the best ETFs, however, you can spread your risk across a broad canvas, mitigating the risk that one bad apple could ruin the whole fund.
Another reason to focus your efforts on finding the best ETFs to buy is the prevailing sentiment of risk aversion. With so many market segments flooded with red ink, the chances of you finding the right individual idea are slim. Instead, current economic dynamics suggest you should opt for sector funds, improving your chances of buying winners.
So, with all that in mind, let’s dive in and take a closer look at these four best ETFs for investors.
|QQQ||Invesco QQQ Trust||$284.16|
|vote||Vanguard Mid-Cap Growth Index Fund ETF||$178.50|
|Initial Public Offering||Renaissance POPE ETF||$28.36|
|BITO||ProShares Bitcoin Strategy ETF||$18.17|
Best ETFs to buy now: Invesco QQQ Trust (QQQ)
When researching the best ETFs, it’s important not to focus solely on price. Instead, you want to find funds that have a relatively robust trading volume. Otherwise, your money could end up flowing into zombie ETFs or unattractive and therefore inactive funds.
Never say never, but you probably won’t have to worry about the Invesco QQQ Trust (NASDAQ:QQQ) joining the ranks of the undead. With a volume level of nearly 91 million shares, QQQ is rarely, if ever, short of traders. More importantly, Invesco QQQ has some of the world’s leading technology companies among its major holdings.
In the spirit of full disclosure, some of the companies are names I’m a little skeptical of. However, there are plenty of businesses that, in the long run, should prove to be incredibly viable. Therefore, QQQ is one of the best ETFs to buy if you are looking for a bargain.
Vanguard Mid-Cap Growth Index Fund ETF (VOT)
Typically, mid-cap stocks offer an attractive balance of proven stability and upside growth potential. It’s not always healthy to be completely on one side or the other of the spectrum, which makes the Vanguard Mid-Cap Growth Index Fund ETF (NYSEARC:vote) a suitable choice for investors who feel things.
Nonetheless, the broader market volatility hasn’t been too supportive for VOT stocks. Year-to-date (YTD) mid-cap ETF is down nearly 30%, significantly more than the benchmark SPDR S&P 500 ETF Trust (NYSEARC:TO SPY), which decreased by 18.1% over the same period. However, for the patient investor, once circumstances normalize, the upside potential for VOT should be significantly higher.
As the name of the ETF suggests, VOT is well balanced. It has the highest exposure to technology, offering the potential for growth. However, its important ties to healthcare, financial services and energy provide the much-needed stability that is so valuable right now.
Best ETFs to buy now: Renaissance IPO ETF (IPO)
As one of the hardest hit ETFs, the Renaissance POPE ETF (NYSEARC:Initial Public Offering) must come with a disclaimer: only place a bet with money you can afford to lose. Even then, it’s definitely a platform for serious gamers. As the name suggests, this fund focuses on companies that have recently launched an initial public offering (IPO). And while this arena is compelling, it’s also extraordinarily risky.
Still, if you get the call correctly, buying a newly listed company when shares are offered on the secondary market – or better yet via a pre-IPO placement – could yield dramatic gains. At the same time, you should consider the opposite scenario: you could suffer extraordinary losses. As the debacle surrounding many special purpose acquisition companies (SPACs) has proven, IPOs can be dangerous.
Still, this market sub-segment can offer exposure to breakthrough companies. So if you really like the idea of being a pioneer, the Renaissance IPO might be among the best ETFs to buy.
ProShares Bitcoin Strategy ETF (BITO)
OK, so let’s eliminate some revelations. As a long-term concept, I’m a big fan of cryptocurrencies. I also have some Bitcoin (BTC-USD), which is at the heart of ProShares Bitcoin Strategy ETF (NYSEARC:BITO). However, I am simultaneously a fan of reading the room and what the room is telling me is that the cryptos might need some serious fixing.
Since this is the internet, I am fully aware that some of you, perhaps most of you, disagree with me. It is very good. For those on the other side of the fence, you have BITO, which, according to its underlying website, “allows investors to gain exposure to bitcoin returns in a convenient, liquid, and transparent way.”
Therefore, with so many concerns about cyberattacks and other nefarious activities impacting crypto-related businesses, BITO may be one of the best ETFs to buy if you just want your Bitcoin without all the unnecessary drama – and sometimes discouraging.
As of the date of publication, Josh Enomoto held a LONG position in BTC. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.