3 Thematic ETFs Demanding Investor Attention In 2021

Roundhill Sports Betting & iGaming ETF (BETZ)

One of the true success stories among this year's crop of new ETFs, the Roundhill Sports Betting & iGaming ETF (NYSEARCA: BETZ) is a prime example of a thematic ETF entering 2021 with an array of tailwinds.

BETZ debuted in early June and has already returned 62.39% while accumulating $200 million in assets under management.

Buoyed by Wall Street's seemingly undaunted enthusiasm for sports wagering equities, BETZ enters 2021 with multiple catalysts, namely increased legalization of iGaming and sports betting by cash-strapped states. Near-term sparks could arrive via New York signing off on mobile betting and Massachusetts signaling sports betting will be addressed and passed in the 2021 legislative session.

Adding to the case for BETZ in 2021 is that the new year will be the first full year of sports wagering in new “live and legal” states, such as Colorado, Illinois, Michigan, and Tennessee. 

The sports calendar should normalize in the back half of the year.

ARK Fintech Innovation ETF (ARKF)

The ARK Fintech Innovation ETF (NYSEARCA: ARKF) already more than doubled this year, meaning asking for a sequel in 2021 borders on the greedy, but that doesn't mean investors should gloss over ARKF.

It's a time when bitcoin is surging, cashless payments are taking more market share and digital wallets are deeply undervalued.

As companies such as Square (NYSE: SQ), ARKF's top holding, further monetize digital wallets, the future is bright for this actively managed ETF.

“We believe that Square’s (SQ) Cash App could become a leading global consumer financial services provider,” according to ARK research. “If Cash App can monetize 20% of its US user base at the level of traditional banks today, then with modest growth in its seller business, SQ could return 19% at an annual rate during the next five years, rising from $150 today to $375 per share in 2025.”

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