The S&P/TSX Composite Index rose 138 points to open the week on August 23. Volatility has picked up in worldwide markets, as investors have been faced with the reality of rising COVID-19 cases due to the Delta variant. Many investors may be struggling with how to spend their cash in this environment. Today, I want to look at three top future ETFs that have the potential to provide big growth in the 2020s. Let’s dive in.
This ETF offers broad exposure to a red-hot sector
Technology proved to be the most explosive sector in North American markets during the 2010s. This sector has put together impressive growth to open this new decade. Investors who are hungry for exposure to tech may want to consider iShares NASDAQ 100 Index ETF (TSX:XQQ) as a strong future ETF.
The iShares NASDAQ 100 ETF offers exposure to 100 of the largest non-financial companies listed on the NASDAQ stock market by market cap. Shares of this ETF have climbed 20% in the year-to-date period as of close on August 23. The ETF is up 30% from the prior year.
Investors should be very familiar with the big names in this ETF. Its top five holdings include Apple, Microsoft, Amazon, Alphabet, and Facebook. These tech giants have greatly bolstered their reach over the past decade and appear poised to post strong growth over the course of the 2020s.
Why I’m excited about this future ETF for the long term
Back in February, I’d discussed why investors should get in on automation. This is another area that has seen accelerated development during the COVID-19 pandemic. It stands to reason that it will continue to transform the economy in the years ahead.
Horizons Robotics and Automation Index ETF (TSX:RBOT) aims to replicate the performance of the Global Robotics & Artificial Intelligence Thematic Index. Shares of this future ETF have climbed 8.4% in the year-to-date period. It has increased 32% compared to the previous year. Since its inception, the ETF has delivered gains of 29% in 2019 and 47% for the full year in 2020.
Some of the top holdings in this ETF include companies like Intuitive Surgical, Nvidia, Keyence, and Upstart Holdings.
One more ETF to snatch up before the fall
In April, I’d looked at some of the top electric vehicle stocks to pick up for the long haul. This sector had some impressive breakthroughs during the 2010s. Investors can expect strong growth in this area, as more consumers are able to embrace EVs.
The Evolve Automobile Innovation Index ETF (TSX:CARS) is one of my favourite future ETFs to snatch up today. This ETF seeks to replicate the performance of the Solactive Future Cars Index Canadian Dollar Hedged. Shares of this ETF have increased 2.3% in 2021. It has climbed 57% in the year-over-year period.
Unsurprisingly, this fund offers big exposure to U.S.-based stocks. Its top five holdings are SiTime, Ceres Power Holdings, Gentherm, MaxLinear, and Advanced Micro Devices.
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 Ambrose O'Callaghan has no position in any stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. The Motley Fool owns shares of and recommends Advanced Micro Devices, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, Intuitive Surgical, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2022 $1,920 calls on Amazon, long January 2022 $580 calls on Intuitive Surgical, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, short January 2022 $600 calls on Intuitive Surgical, and short March 2023 $130 calls on Apple.