Best ETFs To Buy In 2021

Another good reason to opt for an ETF is when you wanna invest in a risky industry that is hard to research about yourself. Yes, Marijuana is a perfect example. In such cases, an ETF would make the most sense.

Kyle’s Best ETF Picks

Every year at Kipinger.com, they come up with a “Best ETFs for the year” edition on their blog. You can go and read that yourself we’ll provide you the link. But for now, let’s ask the writer of this year’s edition, Kyle himself, to summarize the list.

But before getting into that, remember that not every pick in the list is going to do well necessarily in 2021, and not each one of them will do well for the entirety of 2021. The list is created keeping in mind the trends of the future.

So, every year when they make this list, the number 1 spot is always taken by VOO, which is the Vanguard S&P 500 ETF. The reason is that everyone should start with a core, and any S&P 500 ETF is a great core.

If you have your core sorted and wanna get into some strategic ETFs, then value ETFs are something you should look into. It’s one of the biggest trends in 2021 because value stocks are expected to outperform this year. There are two value ETF picks on the list, the Vanguard Value ETF (VTV) and Distillate U.S. Fundamental Stability & Value ETF (DSTL).

The latter one i.e., Distillate U.S. Fundamental Stability & Value ETF is a unique and one-of-a-kind value ETF because instead of focusing on traditional value metrics like PE, PB, PEG, etc. It focuses on free cash flow, which is a more reliable value metric. 

Another unique fund on the list, which is a leveraged fund, is ProShares Short S&P500 ETF (SH). As the name suggests, it is a short fund and a hedge against the market. It gives you the inverse returns of the S&P 500. 

Now, shorting the biggest economy in the world might sound like a stupid idea, but it’s actually a very responsible hedge. If you’re an investor, it may not be for you. But if you’re someone who thinks you can time the market or you wanna survive a market crash without selling your portfolio, SH is a great option. 

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Disclaimer: Investing in the financial markets involves a risk of loss. You should only invest the money you can afford to lose.

Invest Diva (KPHR Capital, LLC) and Kiana Danial are NOT a ...

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