New on Stake | There’s an ETF for that…
While ETFs are great for index investing, some of our most recent additions to the platform provide exposure to niche and particular market trends and strategies. While indexes are broad and all-encompassing, stocks can be classified into any of 150 different sub-industries. Above that, strategies employed by professional fund managers can be replicated and followed using certain ETFs. Here are some of the most interesting additions to Stake in the last week.
IDRV | iShares Self-Driving
If Google, Tesla, Amazon and Apple are all building rapidly in the space, it’s worth investigating. Self-driving technology has been a bit of a buzz sector recently, and with good reason. $IDRV is up almost 100% in the 2 years since listing. While names like Tesla and Nvidia make up the fund’s major holdings, non-US-listed companies like Toyota, Volvo and Samsung make this ETF attractive to investors. Even this year, self-driving cars are a US$40b market.
If you’ve been watching American sports for a little while now, you would have noticed a change in commentary over the last 5 years. Before every opening buzzer, announcers will declare the odds for each match. Sports betting is a growing industry in the US, spurred on by increasing legalisation. 10 states have now legalised some form of online gambling. On top of well-known names like DraftKings and Penn, $BETZ invests in companies like Australian-based Pointsbet or UK-based Flutter. Their biggest holding is Entain, the largest sports betting company in the world.
Just to prove there is an ETF for everything, have a look at these.Cash is king as they say. For those who like a bit of meat on the bone, the Cash Cow ETFs are an option. Pacer invests in the companies with the greatest free cash flows in the market. Free cash flows is the money left over after expenses, interest, taxes, and long-term investments. It gives businesses incredible flexibility to issue dividends, commence sharebuy backs or undertake M&A activity. $COWZ invests in the 100 Russell 1000 companies with the highest FCF yield. $CALF does the same in the S&P Small Cap 600. How good are the tickers?
Other names to add to your watchlist:
LCTU | BlackRock Carbon Readiness ETF
BlackRock’s ETF invests in the companies that will benefit most from our transition to a carbon-neutral future; a very tech-focused fund.
EDOC | Global X Telemedicine & Digital Health
GlobalX’s ETF specialises in telemedicine and digital health with names like Illumina (ILMN) and Agilent Technologies (A) amongst their biggest holdings.