4 Trends in the 2022 ETF Market

Exchange-traded funds (ETFs) give investors exposure to a broad array of securities. They help you to diversify your portfolio, and you can easily buy and sell them through brokerage firms.

While ETFs can have some of the same benefits as mutual funds, they typically cost less. ETFs had record growth in 2021, and interest in these investment funds remains high.

What are some of the major ETF themes for investors to watch this year? 

1. Mitigating Inflation: The economy is in a period of surging inflation, which inevitably affects the investment landscape. Certain asset classes like gold and commodities are considered safe bets for hedging against inflation, and ETFs can provide access to these assets more easily.

2. Bitcoin ETFs: Investors can choose from a wide variety of ETFs, such as equity ETFs, commodity ETFs and currency ETFs. Last year, cryptocurrency ETFs came onto the scene, and more will likely launch in 2022.  

3. EGS ETFs: Sustainable investment is driving growth in environmental, social and corporate governance (ESG) ETFs. The increasing popularity of EGS ETFs is expected to continue generating interest and value. 

4. ETFs in 401(k)s: Mutual funds have long been among the most popular investment options for 401(k)s, but an increasing number of mutual funds are converting to ETFs. This trend could lead to wider availability of ETFs in the 401(k) space.

If you are interested in leveraging ETFs as part of your investment strategy, reach out today and get your questions answered.