On February 24, 2022, Russia launched a large-scale invasion of Ukraine. At the time of this writing, Russian troops and military vehicles were reportedly closing in on the capital Kyiv. On the date of the invasion, I’d looked at three exchange-traded funds (ETFs) that were worth considering in the face of this geopolitical crisis. Today, I want to look at three more ETFs that are worth snatching up right now.
Image source: Getty Images
Why I’m snagging this cybersecurity ETF
The cybersecurity space has experienced strong growth over the past decade. Indeed, the ongoing conflict has seen Russia reportedly launch devastating cyber attacks in a bid to cripple Ukrainian infrastructure. Nations are increasingly investing in cyber warfare and cyber defence, and private entities are doing the same.
Investors who want exposure to this sector should target Evolve Cyber Security Index ETF (TSX:CYBR). Shares of this ETF have dropped 7.1% in 2022 as of close on February 24. This has pushed the stock into negative territory in the year-over-year period.
This ETF seeks to invest primarily in the cybersecurity industry through hardware and software development. Some of the top holdings in this fund include Palo Alto Networks, CrowdStrike Holdings, and Okta. Over 80% of this fund is weighted in firms that are based in the United States and Israel.
The Russia-Ukraine conflict has spurred oil prices
The spot price of WTI crude reached above US$100/barrel after the initial stages of Russia’s February 24, 2022, invasion. At the time, I’d looked at some of the top energy stocks to scoop up in this space. Oil markets have retreated in the 24 hours since.
Canadian investors who want exposure to the oil and gas sector should look to iShares S&P/TSX Capped Energy Index ETF (TSX:XEG). Shares of this ETF have climbed 18% in 2022 as of early afternoon trading on February 25. The ETF have surged 79% in the year-over-year period.
This fund seeks long-term capital growth by replicating the performance of the S&P/TSX Capped Energy Index. Canadians will recognize many of the familiar companies that make up this ETF. Its top holdings include Canadian Natural Resources, Suncor, Cenovus Energy, and Imperial Oil.
One more ETF to buy today
Gold prices also gained huge momentum in the hours following the invasion. However, the spot price of gold has since retreated under US$1,900 ounce. Meanwhile, cryptocurrencies have staged an impressive comeback.
Despite the loss of momentum, gold is still an interesting target as investors combat volatility in early 2022. Canadians who want exposure to gold may want to seek out iShares S&P/TSX Global Gold Index ETF (TSX:XGD). Shares of this ETF have increased 9% in 2022. The ETF is up 12% in the year-over-year period. The ETF seeks to track the performance of the S&P/TSX Global Gold Index.
Some of the top holdings in this fund include gold producers like Newmont, Barrick Gold, and Agnico Eagle Mines. I’m still bullish on gold in 2022, which is why I’m seeking out this ETF in late February.
