Popular ETFs among investors
In this article you will find out which ETF is the most advantageous and popular for the year 2022. You will read more about ETFs that are popular this year and why some are worth investigating. In short: the best ETFs for 2022. Don’t know what an ETF is yet? Then read first: What is an ETF?
How to choose the best ETFs of 2022?
It is extremely difficult: predicting the future. This makes making good investments quite risky, and you can worry a lot about this. Nowadays you can even make investments without actually choosing your own shares and having shares at your disposal.
That sounds ideal, right? This is exactly how it works with ETFs. If you buy an ETF, you can reach a large number of different shares at once. In this way, you can spread your risk, because your investments are neatly distributed over the entire market. With an ETF, you can therefore enjoy the advantage of the general market system.
The question that remains is which ETFs exactly should you buy. To help you as a potential ETF investor with this, this article will discuss the best and most popular ETFs of the year 2022. Before we explain this, we will first delve a little deeper into the phenomenon of ETF. Do you want to read more about how to choose the best ETF yourself? Then read our blog: Choosing the best ETF .
ETF: What does it stand for?
The abbreviation ETF stands for Exchange Traded Fund. ETFs are part of the larger category of investments. Another name for them are trackers. Most ETFs track stocks and/or bonds, but some ETFs are focused on commodities or currencies.
ETFs are very functional because you can buy a combination of shares with the push of a button. You don’t have to select the companies yourself. Because you have to put in so little effort, ETFs are popular. You can also spread your risk much better, so you don’t have to worry as much about all your money being gone if a company goes bankrupt. You don’t have to stay awake at night to keep an eye on the market, ETFs fortunately provide less risk and many shareholders are happy about that.
The Best ETFs for 2022 – 4 Popular ETFs
A type of ETF that is doing very well at the moment are index funds . These funds are not expensive and provide ultimate risk diversification. Another example of ETFs are ETFs that focus on a specific area of expertise, such as a real estate ETF .
In this article, we will highlight a number of popular ETFs for the year 2022. The ETFs are discussed individually, and the information allows you to assess whether it matches your way of thinking. So always do your own research! This list does not contain purchase recommendations. Decide for yourself whether you think the ETF is worth taking a closer look at.
The best ETFs 2022:
- Vanguard S&P 500 ETF
- MSCI World Index (USD) / Vanguard VWRL ETF
- AEX GR ETF
- iShares Global Clean Energy UCITS ETF (INRG)
1. Vanguard S&P 500 ETF
The Vanguard S&P 500 ETF is a good candidate. This ETF is linked to stocks in the index called the S&P 500 Index. The index is home to 500 large companies from the United States. The index is seen as the benchmark for the return percentage of the American stock market.
The ETF aims to mimic the index’s return percentage as far as possible. Many shareholders swear by this ETF, because of its low price and the fact that the index has a good track record.
The ETF is primarily designed for shareholders who can set aside their money for a long period of time.
2. MSCI World Index / Vanguard VWRL
The ETFs in this category are paired with the MSCI World index. The index has an influence on stocks from all over the world. This ETF has the advantage that you have access to stocks from all over the world.
The index is seen as a benchmark for the global investment market. The index is dominated by shares from the United States, but shares from Africa and Asia are also present. This can be explained by the fact that America has the largest economy. As a result, this country has a big say.
3. AEX GR ETF
This ETF is the only one listed in Euros. The ETF follows the Dutch AEX. What makes the ETF unique is that the profit distributions are automatically reinvested.
If you reinvest your profits in the long run, you can make a lot of profit. If you want to keep the money that comes from your profits, then it is definitely recommended to have your dividends reinvested.
This is easy to explain, as profits will compound if you have reinvested them. If you have reinvested your normal dividend, you will get more profit in the long run. In this way, you can do more reinvestments, and you will end up in a positive vicious circle.
4. iShares Global Clean Energy UCITS
Climate change is a hot topic these days. If you are interested in sustainability, the following ETF is for you: iShares Global Clean Energy UCITS. This ETF tries to track the performance of an index that focuses on clean energy and sustainability. There are 126 sustainable companies within this ETF. Almost half of it consists of utilities. There are also shares in the ICT world and in construction. This way you can invest in a responsible way that is also sustainable.
Disclaimer: The best ETF of 2022
We all know that it is extremely difficult to decide what exactly is the best ETF for the year 2022. There are so many ETFs and they come in all shapes and sizes, we have not subjected all ETFs to research. We have described four different types of ETFs above, but of course there are many more ETFs on the market that are worth buying. So the article is only intended to inspire and encourage you to delve further, NOT as buying advice.