Best Performing ETFs Of 2021

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2021 was a banner year for stocks. Major indexes posted double-digit gains for the third consecutive year, thanks mainly to the ultra-accommodative monetary policy and a massive fiscal stimulus.

The S&P 500 (SPY - Free Report) was up 27% and posted 70 record highs during 2021. It has more than doubled since the start of 2018, its highest 3-year return since 1997-1999, just before the bursting of the internet bubble. Tech heavy Invesco QQQ ETF (QQQ - Free Report) gained 26% during the year.

The Breakwave Dry Bulk Shipping ETF (BDRY - Free Report), the iPath Series B Carbon ETN (GRN - Free Report), and the iPath Series B Bloomberg Tin Subindex Total Return ETN (JJT - Free Report) were the top-performing ETFs of 2021, up more than 245%, 140% and 120% respectively.

Container shipping rates have surged due to supply chain disruptions around the world caused by the pandemic. The rapid spread of the Omicron variant has created more headaches for the industry. Further outbreaks are likely to worsen port congestion and delays.

BDRY is the first and only freight futures exchange-traded product exclusively focusing on dry bulk shipping, which is an important part of global commodity market

The governments around the world are focused on moving towards goal of net-zero emissions by 2050 set by the 2015 Paris agreement. In the cap-and-trade system, a government sets a limit on overall emissions which is tightened over time.

Big carbon emitters need to buy these pollution permits to stay under regularity limits. GRN provides diversified exposure to global carbon markets through futures contacts.

Tin, the most expensive of the major base metals, is used to produce solder that connects semiconductor chips to circuit boards.  It is also used in heat-resistant plastics for homebuilding products.

The demand for the metal has skyrocketed with the surge in sales of consumer electronics, and a hot housing market, while supplies are disrupted as key producers including Indonesia, Malaysia and Myanmar are struggling to prevent the spread of Covid-19. JJN tracks an index of tin futures.

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