Everyone is always looking for an edge, but most of the "experts" usually look at the same old things, like earnings and interest rates. While these are important, Money Morning Director of Technology & Venture Capital Research Michael Robinson sees something potentially more powerful.
He thinks there's a hidden catalyst to the broader markets right now in the massive demand for exchange-traded funds (ETFs). And that is presenting us with some of today's best investments...
Most investors consider ETFs to be passive investments. The thinking is you just buy shares and sit back, hoping they will appreciate in value. The good news is they track a small basket of stocks, removing the "single stock" risk. Big problems in one component stock will not hurt your returns much.
But that's not why he's focusing on ETFs right now...
According to Robinson, demand for ETFs will drive the market higher in 2017. You see, ETFs represented 6% of the U.S. stock market in the first quarter. And they keep on growing.
In fact, growth in ETF assets so far this year is on track to surpass its total growth for 2015 and 2016 combined. Clearly, Main Street investors have a big appetite for "passive" investments.
You could just buy a passive index fund and be satisfied with merely matching the market's performance over time. But that's not what we do here at Money Morning. We are on the lookout for the best investments that can double, triple... even quadruple your money.
Technology remains one of the biggest drivers in this bull market that began in March 2009.
Even though we do see the sector come under pressure from time to time (as it did again a couple of weeks ago when the Nasdaq dropped 3.4% from June 9 through July 3), technology remains the best place to harness the creativity and entrepreneurial spirit of America.
The sector can also bring life-changing gains in your portfolio...
Trending: The Best Stocks to Buy for Mega-Profits in 2017
Tech still has the highest growth potential in the markets right now. And Robinson has come up with three ETFs that are focused on high-tech products and have great returns with very low expenses. Low ETF expenses mean you get to keep more of the profits generated.
These tech ETFs are three of the best investments to make today...
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The SPDR S&P Semiconductor ETF (NYSE Arca: XSD) is a great play on the fact that our tech-driven world needs chips for just about everything, from smartphones and connected cars to Wi-Fi routers and data centers.
The Internet of Everything, virtual reality, and artificial intelligence will serve to keep demand strong for years to come.
With XSD, we get to invest in a diverse group of firms that operate in almost every aspect of the chip sector. Some companies you will recognize, such as the giant Intel Corp. (Nasdaq: INTC). But it also has lesser-known companies such as Micron Technology Inc. (Nasdaq: MU), which supplies internal-processing components for iPhones and other Apple (Nasdaq: AAPL) products.
Over the past year, XSD has soared roughly 41%, more than double the gains of the S&P 500. XSD trades at $65 and has an expense ratio of 0.35%.
Next is the First Trust Dow Jones Internet Index (NYSE Arca: FDN), which tracks 40 Internet stocks with a concentration on e-commerce.
For instance, it holds e-commerce titans eBay Inc. (Nasdaq: EBAY) and Amazon.com Inc. (Nasdaq: AMZN), which is one of my favorite stocks already. FDN also owns Netflix Inc. (Nasdaq: NFLX) and Alphabet Inc. (Nasdaq: GOOGL).
Plus, FDN holds web backbone players such as Netgear Inc. (Nasdaq: NTGR), as well as online trading stocks like E*Trade Financial Corp. (Nasdaq: ETFC) and TD Ameritrade Holding Corp. (Nasdaq: AMTD).
For the year ended June 30, FDN is up roughly 31%, double the gains of the S&P 500. It trades at roughly $104 and has a 0.54% expense ratio.
And finally, Robinson has recommended the iShares North American Tech ETF (NYSE Arca: IGM) several times over the past three years. And for two very good reasons - performance and game-changing component companies.
Over the past year, it has more than doubled the overall market's return, with 31% gains. Over the past five years, it has beaten the S&P 500 by just shy of 70%, showing that its upside just keeps getting better.
This ETF covers all the big leaders in tech, a group that has been a big factor in the market's rally over the past year. We're talking about firms like Apple, Microsoft Corp. (Nasdaq: MSFT), Amazon, and Facebook Inc. (Nasdaq: FB), which make up 30% of its portfolio.
And there's plenty of breadth here, as well. Holding some 285 stocks, IGM trades at roughly $151.00. It has a 0.48% expense ratio.
Each of these ETFs takes advantage of big tech trends that you can count on for the long haul.
That means you can hold them for years to come, knowing that they'll help you steadily build your net worth.
Editor's Note: One of the fastest-growing tech investment segments is... cannabis? Yes, you read that right. A high-tech approach to cultivating this ancient plant - that's already legal to use in more than half of 50 states - is generating a multibillion-dollar investment opportunity for early investors. Click here to find out more, including how you can get your copy of Michael Robinson's Roadmap to Marijuana Millions. Packed with more than 30 great companies to buy, it's fast becoming "the weed investor's bible." Check it out...
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