By Mark DeCambre
Happy New Year! It’s the eve before the eve of the end of 2021. In other words, this is the last edition of ETF Wrap of the year before we kick it off again. Short of a crystal ball, we’re going to offer up some insights from the folks at Astoria Advisors on what to buy next year.
We’ll keep things short and sweet.
And as per usual, send tips, or feedback, and find me on Twitter at @mdecambre or LinkedIn , to tell me what we need to cover, or share your 2022 outlooks for the industry. We’ll try to post a few of those as we get them.
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Check out: What is an ETF? We’ll explain.
|Top 5 gainers of the past week||%Performance|
|U.S. Oil Fund LP /zigman2/quotes/203483736/composite USO||6.0|
|iShares MSCI Sweden ETF /zigman2/quotes/207516251/composite EWD||4.9|
|AdvisorShares Pure US Cannabis ETF /zigman2/quotes/220307682/composite MSOS||4.6|
|Invesco Dynamic Semiconductors ETF /zigman2/quotes/209181828/composite PSI||4.5|
|Consumer Discretionary Select SPDR Fund /zigman2/quotes/200844504/composite XLY||4.3|
|Source: FactSet, through Wednesday, Dec. 29, excluding ETNs and leveraged products . Includes NYSE, Nasdaq and Cboe traded ETFs of $500 million or greate r|
…and the bad
|Top 5 decliners of the past week||%Performance|
|ARK Genomic Revolution ETF /zigman2/quotes/206454610/composite ARKG||-6.2|
|First Trust Global Tactical Commodity Strategy Fund /zigman2/quotes/207775995/composite FTGC||-4.5|
|Vanguard Total International Bond ETF /zigman2/quotes/206731111/composite BNDX||-3.0|
|SPDR S&P Biotech ETF /zigman2/quotes/205950134/composite XBI||-2.9|
|ARK Innovation ETF /zigman2/quotes/204808965/composite ARKK||-2.8|
ETFs for 2022
Yield, yields and income. That would appear to be the major takeaway from our discussions with John Davi, founder of portfolio strategist Astoria Advisors. We reviewed some of Astoria’s 2021 calls and Davi offered up some ideas for next year that are worth a look, given the times.
Davi’s calls shouldn’t be taken as investment advice but it is always interesting to garner some perspective based on where some of the pros are putting their money.
Net, net, net
Davi says Netlease Corporation Real Estate ETF /zigman2/quotes/205170892/composite NETL +1.61% is a good bet because real-estate investment trusts focused on net leases offer predictable sources of income. A net lease agreement is a long-term agreement in which the lessee is responsible for most of or all the property expenses, Davi explains. Real estate is generally viewed as a good inflation bet. NETL, which launched back in 2019, was up 22% in 2021 and carries an expense ratio of 0.60%. That translates to annual expenses of $6 for every $1,000 invested.
The next pick (actually a pair) is another sober selection that emphasizes consistency over fanfare. SPDR S&P Dividend ETF /zigman2/quotes/206871683/composite SDY +1.46% and SPDR Portfolio S&P 500 High Dividend ETF /zigman2/quotes/204586803/composite SPYD +1.42% offering consistently high-yielding, low-cost ETFs for average folks in times where stomach-churning volatility may be too much to handle. “SDY and SPYD track the returns of the S&P High Yield Dividend Aristocrats Index and the S&P 500 High Dividend Index, respectively, while providing a healthy dividend in the meantime,” writes Davi. SPYD has an expense ratio of 0.07%, has assets of over $5 billion and was up 28% with a 3.7% dividend, at last check Thursday midday; while SDY charges 0.35%, manages over $20 billion and gained 22% in 2021 thus far, while touting a 2.64% yield.