Exchange-traded funds (ETFs) are some of the best ways to invest these days — especially as the world eases away from growth stocks and back towards economic normalcy. While that’s not as exciting, it’s also less risky. And, honestly, a boring market is a safe market.
But just because you invest in safer ETFs doesn’t mean you need to ignore emerging industries. In fact, it’s one of the best ways to access them! Instead of wondering which individual company to invest in, an ETF gives you access to many and is run by professionals.
With that in mind, here are the three best ETFs for 2022 that I’d recommend buying again and again.
Horizons TSX60
Let’s start with something safe and simple. Horizons S&P/TSX 60 Index ETF (TSX: HXT) offers investors access to the top 60 companies on the TSX today. So, you get the big wigs in the tech sector but the stable big banks as well. This is a prime place to start, where you can invest in all these companies for a share price of just $51 as of writing.
But why Horizons? Well, the ETF is powered by artificial intelligence. Instead of having people manage it, an algorithm helps the company choose the top 60 TSX stocks. This is instead based on data rather than gut feeling. And it’s been proving to work well, with shares rising 28% in the last year at a steady rate and 70% in the last five years.
Purpose Bitcoin ETF
Just because you invest in ETFs doesn’t mean you shouldn’t take on anything fun. That’s what I love about the cryptocurrency ETFs flooding the market. But it has been a flood, so it’s important to pick one that’s right for you and your risk management.
In this case, Purpose Bitcoin ETF (TSX: BTCC.B) is still a top favourite. The company invests entirely in Bitcoin, so it’s just like buying the cryptocurrency, but for a much smaller share price. So, if Bitcoin goes up, so does Purpose. But Purpose also has the advantage of buying more Bitcoin, therefore bringing its assets under management and share price higher in the process.
Now, cryptocurrency is going through a drop right now, so long-term investors should see this as an opportunity. But, granted, if short-term risk isn’t for you, this may not be the right stock. Shares are down 39% from 52-week highs.
BMO Equal Weight Banks ETF
For the flip side, if you want even less risk, I’d consider some defence by investing in BMO Equal Weight Banks Index ETF (TSX: ZEB). This ETF is pretty much exactly as it sounds, creating a portfolio of Canada’s banks and trying to replicate movement as closely as possible.
The Big Six banks performed well during and after the pandemic, coming back to pre-pandemic levels within a year. But, even better, they’re now soaring to all-time highs and beyond. And they’ve bumped dividend yields along with way. Therefore, investors also get access to a 3.33% dividend yield as of writing.
Shares of ZEB are now up 40% in the last year, replicating the majority of Canadian banks. But with analysts predicting more growth in this category, this is definitely a solid long-term purchase for your portfolio.
