Best Performing ETFs of 2021

Best Performing Exchange-Traded Funds of 2021

Exchange-Traded Funds (ETFs) have gained immense popularity, offering investors a simple way to hold diversified portfolios at low costs. They provide targeted exposure to specific market sectors, making them accessible even for beginners. The following list highlights the most notable ETFs of 2021, showcasing various investment strategies and sectors helped shape the year's investment landscape.

SPDR S&P 500 ETF (SPY)
SPY remains a top choice, holding a staggering $360 billion in assets. Its liquidity is exceptional, with over 74 million shares traded daily. The fund’s minimal expense ratio of 0.09% makes it an efficient option for tracking large-cap U.S. stocks and betting on leading companies in the market.

Invesco QQQ Trust (QQQ)
This fund focuses exclusively on non-financial companies listed in the Nasdaq, primarily tech giants. Its 2020 performance surged by 48.4%, reflecting booming tech sector growth. With an expense ratio of 0.2%, QQQ remains a popular ETF for investors seeking exposure to innovative technology firms.

Vanguard S&P 500 ETF (VOO)
Tracking the S&P 500, VOO offers a broad, diversified portfolio of prominent U.S. firms. Launched in 2010, it manages hundreds of billions in assets and boasts a low expense ratio of 0.03%. Its 2020 market gains of 18.3% exemplify robust performance aligning with overall market growth.

ARK Genomic Revolution ETF (ARKG)
ARKG is an actively managed fund investing in high-potential, high-risk biotech and healthcare companies, including gene editing, agriculture biology, and stem cell firms. Managed by renowned investor Cathie Wood, ARKG incurs a higher annual fee of 0.75%, but has delivered over 40.3% cumulative returns over five years.