These ETFs could fill a gaping hole in your investment portfolio

If you think you’ve built a properly diversified portfolio of global equities, it might be time to think again.

Does it expose you to lithium, a metal essential to the electrified economy? Or space exploration? What about semiconductors? Automating? Robotics? Does it include inflation protection? Or funds that will make money when the stock markets fall?

You might not need all of these in your wallet, but you can’t afford to ignore them.

The following low cost exchange traded funds (ETFs) can fill gaping holes in your portfolio and maybe help you take advantage of the next big thing.

Some have recently shown outstanding performance but, as always, this does not guarantee future returns, so understand the risks.

Global X Lithium FNB and batteries

Vijay Valecha, Investment Director at Century Financial in Dubai, chose this ETF as something to consider. Lithium is now an essential metal for battery technology, electric vehicles, renewable energy storage and mobile devices.

“This offers a more convenient and less risky way to exploit its growth potential than buying individual lithium stocks,” he says.

Global X invests in companies involved in the complete lithium cycle, from metal mining and refining to battery production. The main titles are Albermale Corporation, Gangfeng Lithium Co and Yunnan Energy New Material. The performances have been breathtaking over the past 12 months, but don’t expect a repeat.

Fund size: $ 4.86 billion

Total expense ratio: 0.75%

One year return: 130.26 percent

Yield: N / A

MSCI EAFE Xtrackers Hedged Equity ETF

Are you too exposed to the booming US stock market after its recent dramatic outperformance? If so, it might be a good time to split your money.

This ETF provides exposure to a range of developed markets outside of the United States, Mr. Valecha said. “It provides currency risk hedging for the MSCI EAFE Index, which tracks large and mid-cap stocks in 21 developed markets. “

Two-thirds of the fund invests in Europe, particularly in the United Kingdom, France and Switzerland, and one-third in Asia, mainly in Japan.

Fund size: $ 4.17 billion

Total expense ratio: 0.36 percent

One year yield: 25.05%

Yield: 2.83 percent

ARK space exploration and innovation ETF

This ETF will appeal to investors who wish to gain exposure to a sector that is literally out of this world: space exploration and technological innovation. It was launched on March 30 by star fund manager Cathie Wood of ARK Invest.

“The portfolio includes orbital and sub-orbital aerospace companies, companies with potential to benefit from aerospace activities and companies that develop technologies that enable space exploration, including robotics and artificial intelligence,” said Mr. Valecha. Performance has been stable so far, but these are the early days.

Fund size: $ 627 million

Total expense ratio: 0.75%

Back to three months: 1.01%

Yield: N / A

Wisdom Tree Futures Management Strategy Fund

Investors not only make money when the markets are up, they can profit when they are falling as well. Managed term funds attempt to generate a positive return in all cases.

They do this by both “long” on stocks, in the hope that their stock price will rise, but also by “selling” profiting when they fall.

This ETF invests in a diverse range of futures contracts covering commodities, stocks, currencies and interest rates, Mr. Valecha said.

Fund size: $ 142.9 million

Total expense ratio: 0.65 percent

One year return: 11.62 percent

Yield: 0.42%

IShares S&P India Nifty 50 ETF

This will appeal to investors who wish to gain exposure to the Indian stock market, as it tracks the performance of the largest Indian companies through the benchmark Nifty 50.

Indian markets have been the best performing emerging markets lately, said Mr. Valecha. “They are supported by political stability, an aging workforce, high foreign exchange reserves and a relatively stable currency, compared to peers like Mexico, China and Brazil.”

Fund size: $ 730.7 million

Total expense ratio: 0.90 percent

One year return: 50.86 percent

Yield: N / A

ETF Amplifying Transformational Data Sharing

Buying cryptocurrencies such as Bitcoin or Ethereum is not the only way to invest in the blockchain revolution. You can spread your risk with this ETF.

It invests in the shares of companies actively involved in blockchain technologies, both developers and users, including crypto miners and semiconductor producers.

While risky, its major holdings include solid names like PayPal, digital payment firm Square, and Nvidia, as well as specialist holdings like Hive Blockchain Technologies, Coinbase, and Bitfarms. Recent performance has been breathtaking, but again, expect volatility.

Fund size: $ 1.29 billion

Total expense ratio: 0.71 percent

One year yield: 99.10%

Yield: N / A

IShares Semiconductor ETF

Semiconductors are the building blocks of computers and a critical component in everything from smartphones and headphones to clean energy. They are currently scarce due to plant closures, US-China disputes and strong demand as car sales recover.

Apple CEO Tim Cook has warned of a semiconductor shortage hitting its iPhones and iPads.

This ETF provides investors with exposure to US listed companies that design, manufacture and distribute semiconductors, including Nvidia, Broadcom, AMD, ASML Holdings and Texas Semiconductor.

Fund size: $ 7.38 billion

Total expense ratio: 0.43%

One year return: 68.99%

Yield: 0.67%

Global X NASDAQ 100 Covered Call ETF

This fund may appeal to those looking for maximum income as it is currently earning 11.8 percent. It does this by following a “covered buy” strategy, buying stocks in the Nasdaq 100 index and selling corresponding call options on the same index.

This historically produces higher returns, especially in times of volatility.

Fund size: $ 4.3 billion

Total expense ratio: 0.60%

One year return: 20.14 percent

Yield: 11.80%

Vanguard Short-Term Inflation-Protected ETFs

Investors who are concerned about the impact of inflation on their portfolios might get some protection from an ETF investing in US Treasury Inflation-Protected Securities, or TIPS.

Vanguard’s fund tracks the performance of inflation-protected US government bonds with a remaining maturity of less than five years.

Demand is increasing along with inflationary fears, says Valecha. “Use them for cover purposes, rather than a pure investment themed game. “

Fund size: $ 52.8 billion

Total expense ratio: 0.05%

One year yield: 5.33%

Yield: 0.30 percent

IShares Automation and Robotics UCITS ETF

If you’re in the mood for investing in a “megatrend,” Matt Brennan, head of investment management at AJ Bell, recommends this ETF from fund manager BlackRock’s iShares franchise. It invests in companies in developed and emerging markets that develop automation and robotics technologies.

“This gives you exposure to companies at the forefront of technological change that will drive future economic growth,” he says.

Fund size: $ 3.87 billion

Total expense ratio: 0.40 percent

One year yield: 50.27 percent

Yield: N / A

Franklin FTSE Korea UCITS ETF

Investors can also use ETFs to gain exposure to individual companies and Mr. Brennan advises Franklin Templeton’s range of low cost single country funds.

This gives you direct exposure to the dynamic Korean economy, one of the fastest growing emerging markets. It targets large and mid-cap stocks by tracking the performance of the FTSE Korea 30/18 Capped Index.

Fund size: $ 492.25 million

Total expense ratio: 0.09%

One year yield: 39.13%

Yield: N / A

Franklin FTSE China UCITS ETF

Any serious investor needs some exposure to China, the world’s second largest economy, and Mr. Brennan says this ETF is a cheaper way to do it.

The Chinese stock market has been slipping lately, but this could be a buying opportunity for those looking for long-term exposure.

Fund size: $ 209.62 million

Total expense ratio: 0.19 percent

One year yield: -5.37 percent

Yield: N / A

Updated: September 13, 2021 5:00 a.m.