Capture deep value. Build a portfolio core. Play defense. The 22 best ETFs for 2022 cover a wide range of options for numerous objectives.
Exchange-traded funds (ETF) are investing's Swiss Army knife. You can do just about anything with them: build a portfolio core, get tactical on defense, take a moonshot or even profit when the market drops. And we kept all these objectives and more in mind as we built our list of the 22 best ETFs to buy for 2022.
Hey. If 2020 and 2021 have taught us all anything, it's that we need to be prepared.
The best ETFs for 2022, just like in each previous year's list, do include optimistic funds designed to take advantage of the various trends Wall Street's analysts and strategists see playing out in the year ahead. That goes for stocks, bonds and commodities alike.
But while you and I might assign some significance to arbitrary calendar dates like Jan. 1 and Dec. 31, the markets assuredly don't. That's why we also typically include a few go-anywhere funds that would be just as suitable in 2022 as they would be in 2012 or 2032. We also try to provide investors with a couple of fire extinguishers – defensive options that you might only tap when storm clouds descend upon Wall Street.
So, what does the crystal ball say about 2022? A host of strategists are predicting modest gains in the high single digits: Goldman Sachs says the S&P 500 will hit 5,100. RBC says 5,050, as does LPL Financial at the midpoint of their range – and Kiplinger's Personal Finance Executive Editor Anne Kates Smith agrees with them. "Think somewhere a bit above 5,050 for the S&P 500, or north of 39,000 for the Dow Jones Industrial Average," she says in our 2022 outlook. (The S&P 500 sits at 4,649 presently.)
Wall Street isn't unanimously bullish, however. BofA is calling for a slight decline to 4,600 by 2022's end, while Morgan Stanley thinks we'll be a full 5% lower, at 4,400.
Investing in Russia means investing in oil and natural gas. And with demand for both rising as the world economy recovers from the coronavirus pandemic, a play on Russia may serve investors well, despite the festering conflict over Ukraine.
Russian stocks have pulled back significantly over the past three months, but the decline has been based almost entirely on investors’ sentiment — the forward earnings estimates have hardly budged. Factoring in the long-term nature of conflict between Russia and Ukraine, and how tensions have settled previously, this might be an excellent buying point for investors with an appetite for risk.
Below is information about two exchange-traded funds that track Russia’s stock market in different ways, along with screens of the largest holdings of each.
And naturally, no one expects that performance to come in a straight line, nor do they expect every sector to contribute to those gains or losses evenly. Value and cyclical sectors are popular calls yet again for 2022, though analysts are a bit skittish that the omicron COVID variant will act as yet another hurdle in the recovery.
Here are the 22 best ETFs to buy for 2022. If it seems like a shotgun blast of a selection, that's on purpose. Investors might be chasing a wide array of objectives in the year to come – each of these ETF picks represents a top-flight way to achieve them. Importantly, this is not a suggestion to build a portfolio of all 22 picks, but we do believe there are at least a couple of funds for every type of investor. So read on and discover which well-built ETFs best match what you're trying to accomplish in 2022.
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