Yahoo Finance 'These are the 3 best ETFs for 2021': Stockspot founder
Stockspot founder and CEO Chris Brycki, who famously bought his first stocks at just 10 years old, has revealed what he believes will be the best exchange traded funds to hold in any portfolio in 2021.
On his YouTube channel, Brycki named three ETFs that would work well in 2021, but caveated that they won’t necessarily be the best performing.
“The best performing ETFs tend to be small obscure ETFs that follow something quite specific,” he said.
“[It] could be batteries, it could be Asian tech...In all likelihood, the best performing ETF is going to be one of these obscure ETS that's quite hard to pick in advance.”
However, the following could serve you well.
Vanguard Australian Shares Fund
Brycki said this fund is a staple for any portfolio, and any Aussie building an investment portfolio should consider having this fund in it.
“What I like about this ETF is that it's provided consistent returns, it has low fees, it's well diversified, it has perfect liquidity,” Brycki said.
“It's also more diversified than some of the ETFs that follow the ASX200, because it has the ASX 300, so you get that extra diversification and some of those smaller companies in your portfolio too.”
Also read: 5 simple stock trading apps for rookies
Gold
Gold is traditionally seen as a safe haven asset, because it’s not correlated to the share market. That means when the share market goes down, the value of gold tends to go up.
And with so much uncertainty still surrounding 2021, it’s not surprising Brycki picked gold.
“In a world of expanding central bank balance sheets, zero interest rates, and the monetization of debt, I really believe that gold is something that belongs in every portfolio out there,” he said.
“It's going to provide some stabilisation in markets.”
Brycki also said he believes gold will start to become more of an alternative to government bonds in people’s portfolios.
“Given interest rates are now at zero and government bonds don't provide a lot of protection against inflation or against a market recovery...I think [gold] does have a place there.”
Emerging markets ETF: IEN
While US shares have outshined emerging markets over the last decade or so, Brycki said he believes the tides are turning.
“China's insatiable growth, a weakening US dollar as well as the possibility of inflation, are all working in favour of emerging markets,” he said.
“I think this year, people will start to look in the other direction and emerging markets and that's why I think it also belongs in your portfolio.”
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