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Investment Opportunities

Of ETFs and Oddballs

Total Number of ETFs Globally

Exchange-traded funds (ETFs) are one of the fastest-growing investment opportunities out there today. If current trends continue, they’ll even overtake mutual funds in terms of market share and assets under management.

As of 2017, there were more than 2,000 U.S.-based ETFs and more than 4,000 globally.

In any group that large, there are bound to be a few oddballs. There’s an ETF related to gambling, one dealing with livestock and even a MAGA ETF that invests in companies that back Republicans.

As you can see, ETFs aren’t your dad’s fund investments. They’re more personalized, diverse and flexible than mutual funds.

I’ve found two to illustrate just how niche this market can be.

Would you like an ETF that invests in companies best positioned to benefit from the enormous spending power of millennials? If so, take a look at Global X Millennials Thematic ETF (Nasdaq: MILN).

Millennial investors have been a key part of the takeoff of ETFs. More than 60% of them view ETFs as a necessary part of their portfolios. It only makes sense that they would have an ETF reflecting their unique preferences.

This ETF holds assets in several companies millennials tend to like and patronize: Apple (Nasdaq: AAPL), Netflix (Nasdaq: NFLX), PayPal (Nasdaq: PYPL), Starbucks (Nasdaq: SBUX), The Walt Disney Company (NYSE: DIS), etc.

It’s been performing pretty well, so there’s a chance this millennial might actually move out of his parents’ house sometime soon.

The people behind the Obesity ETF (Nasdaq: SLIM) also found gambling on national stereotypes to be a sound investment strategy. The Obesity ETF plays on the trend of expanding waistlines in the U.S., and it’s paid off. The fund outperformed the S&P 500 by 20% last year.

The Obesity ETF’s major holdings include several health-oriented companies. One is Insulet Corp. (Nasdaq: PODD), which makes insulin pumps and other diabetes supplies. Another is Abiomed (Nasdaq: ABMD), which develops treatments for heart disease. With this ETF, you can invest in cures for diabetes and heart failure, two of the most common ailments in First World countries, including the U.S.

These show there really is an ETF for everyone, no matter how niche your interests. Shop around and I’m certain you’ll find an ETF that suits you.

With ETF investing, there really is something for everyone. So let your financial freak flag fly!

Everything else is personalized these days… why not your investments?

Good investing,

James

*The views and opinions expressed in this article are those of the author and do not necessarily reflect the official position of Wall Street analysts.


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