3 Top-Performing Canadian ETFs in 2020 That Could Keep Soaring

From e-gaming to bitcoin, you can buy safe stocks and still see them soar, just pick from these ETF stocks that have already killed it in the last year!

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You didn’t have to invest during the market crash back in March 2020 to see what was coming. No, I don’t think that anyone could have really predicted a global pandemic. However, I do believe that if you paying close enough attention, the shift to a boost in tech stocks should have been seen coming a mile away. Or at the very least a kilometre.

The problem is twofold for investors today. First, there’s the issue of risk. You don’t know which tech stocks are going to do well and which aren’t. Then there’s the other problem of cost. You might have a safer bet with stocks already doing well, but those stocks are crazy pricey.

That’s why exchange traded funds (ETFs) are such a great option. You can create a balanced portfolio, focused on tech stocks if you like, at a smaller cost. You now have a strong portfolio with minimal expense and balanced for you! So let’s look at three options to consider.

Evolve e-Gaming

E-gaming has been rising for a while now, but this year it took off. After all, people are at home. If you’re at home and bored and already slightly interested in e-gaming, this was the year to dive in deeper. The gaming industry has quelled recession worries for those invested, taking only a slight dip during the crash. That was also the case for Evolve E-Gaming Index ETF (TSX:HERO).

Shares are up about 69% as of writing in the last year, covering everything under the e-gaming industry. That includes software, hardware, and e-gaming services. In 2019, the gaming industry was worth about $151 billion, and it could reach $256 billion by 2025 if not more. So this is definitely an ETF that will pay out handsomely over the next few years and beyond.

Blockchain Technologies

Another industry seeing a huge boost as industries collapse is bitcoin. Bitcoin is powered by blockchain, which is what Blockchain Technologies ETF (TSX:HBLK) has narrowed in on. But it goes beyond that. The company has 25 holdings investing in large-cap established companies within the tech sector, and blockchain companies powering bitcoin tech.

The company continues to hit all-time highs, and is up 160% as of writing within the last year. While other companies fell to the wayside during the crash, Blockchain soared. This soaring hasn’t stopped at bitcoin becomes more popular. So this stock would be a great one to pick up and hold for years.

Horizon Beta Pro

Horizon BetaPro Crude Oil Inverse Leveraged Daily Bear ETF (TSX:HOD) is perfect for those betting against a rebound in the oil price. Now I have to warn you: this one might be better suited to the professionals. But if you’re somehow deep into the oil sector and think you can manage it, this ETF could see your shares soar.

Oil will rebound, but until it does,  this ETF bets against it. The goal is to achieve a 200% inverse of the daily performance made by Horizon’s Crude Oil ETF. The stock does this mainly by investing in gold mines and finance companies at the moment. It seems to be working as the stock soared in April after the crash in oil. Even still it’s up 65% during the last year. Again, this ETF isn’t for the faint of heart, but when it comes to top performers it’s certainly up there.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned.

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